MineHub Reports Second Quarter Fiscal 2025 Financial Results

• MineHub reported a 21% increase in year-over-year revenue and a 24% reduction in operating expenses for the second quarter of Fiscal 2025
• MineHub's customers transacted US$7.3 billion in commodities on the MineHub platform in the first half of Fiscal 2025, an increase of over 15% year-over-year
• During the quarter, MineHub announced a strategic partnership with Abaxx, a leading digital infrastructure developer for financial exchanges, to explore commercial and product collaborations that will accelerate digitization in the commodities markets

Vancouver, British Columbia--(Newsfile Corp. - September 19, 2024) - MineHub Technologies Inc. (TSXV: MHUB) (OTCQB: MHUBF) ("MineHub" or the "Company"), a leading provider of digital supply chain solutions for the commodity markets, is pleased to announce it has filed its interim financial statements (the "Interim Financial Statements") and management's discussion and analysis (the "MD&A") for the three and six months ended July 31, 2024. Copies of the Interim Financial Statements and MD&A are available on the Company's profile on SEDAR+ at www.sedarplus.ca.

Andrea Aranguren, President and CEO of MineHub, commented, "Q2-FY2025 was another solid quarter for MineHub, with exciting strategic partnerships, continued growth in the platform and year-over-year improvements in financial performance. While sales cycles have proved challenging, we remain encouraged by our robust sales pipeline and by the feedback and growth we see from our existing customers. I am especially excited about our strategic partnership with Abaxx, which opens significant opportunities for MineHub to expand into the LNG, carbon, lithium, and nickel commodities markets. Phase 1 of the collaboration has been initiated to integrate Abaxx's secure chat functionality into the MineHub platform allowing for enhanced communication and streamlined information flow."

Accelerating Customer Activity

Accelerating customer activity is increasing cumulative gross merchandise value ("GMV") transacted on the MineHub platform. MineHub achieved GMV of US$7.3 billion of commodities transacted on its platform in the six months ended July 31, 2024, compared to US$6.3 billion of commodities transacted on its platform in the six months ended July 31, 2023.

MineHub is pleased to provide an update on the following customer engagements:

• MineHub continued to onboard Codelco's ecosystem partners in the quarter and has now onboarded the vast majority of Codelco's global copper cathode contracts onto the platform. MineHub's contract with Codelco is aimed at digitizing its global refined copper business, representing a significant validation of MineHub's technology platform. Through MineHub's advanced technology, Codelco will now be able to offer its customers heightened visibility, traceability, and operational efficiencies, elevating the overall customer experience and improving efficiencies for its operational & commercial teams.
• On May 14, 2024, the Company announced a partnership with Surecomp, a global leader in digital trade and supply chain finance solutions. This partnership will integrate MineHub's platform into Surecomp's RIVO™️ solution. The SureComp and MineHub teams are collaborating to further define the value proposition for an integrated trade finance offering for banks and corporates.
• On May 21, 2024, the Company announced the launch of a pilot program with Southwire Company LLC ("Southwire") and the Panama City Port Authority in Florida (the "Port") to incorporate digital truck bills of lading. This initiative aims to modernize and streamline the transportation process for copper cathode shipments, enhancing real-time tracking and security. The pilot program was a resounding success, and the Port and Southwire have transitioned to the commercial use of MineHub's digital truck bills of lading. The program now delivers 100% truck tracking coverage along with an 8% reduction in receiving times at the plant.

Product Development Progress

MineHub strives to amplify the value delivered to customers by enhancing the offering of features and functionality available on its platform. The Company added the following functionality to its platform in the quarter:

• On June 5, 2024, the Company announced the launch of its Financial Document Module. This cutting-edge addition to MineHub's suite of offerings is set to modernize the management of financial documents by providing buyers and sellers with a unified platform for transparent, efficient, and secure financial data sharing.
• The Company completed the first phase of deployment for an Integrated Trade Management & Assay Exchange Offering which combines Trade Management and Assay Exchange into a single comprehensive platform for metals and mining markets. MineHub customers now have access to an improved core Trade Management platform, along with a suite of premium products like digital Assay Exchange, Advanced Analytics, ESG Reporting, and Inventory Management.
• The Company also launched the first version of its Assay Exchange Analytics Dashboard, a first-of-its kind digital assay exchange platform with robust real time analytics that identify trends and opportunities.
• MineHub's Inventory & Consignment module has been enhanced to provide better visibility to quota progress and batch selection via a new simplified release workflow. The Company has also improved audit and inventory reporting capabilities with historical activity reports while enabling streamlined counterparty collaboration with a new release request workflow.
• The Company has begun Phase 1 of the strategic partnership with Abaxx Technologies Inc. ("Abaxx") which is aimed at leveraging Abaxx's secure chat functionality within the MineHub platform to enhance the communication experience and centralization of communication.

Corporate Updates

• On May 8, 2024, the Company appointed Troy Bullock and Andrea Aranguren to the Board of Directors. Mr. Bullock is a recognized leader in the Canadian technology space with over 25 years of international finance leadership experience having previously served as the President and CEO of Nanotech Security Corp, a publicly listed company acquired in 2021.
• On May 28, 2024, the Company announced the appointment of Monika Russell as CFO effective June 1, 2024. Ms. Russell is a seasoned executive business leader with a distinguished career spanning over 20 years across various industries, including ecommerce, technology, manufacturing, and forestry.
• On August 1, 2024, the Company announced a strategic partnership and share exchange with Abaxx. The companies are partnering to explore a wide range of commercial and product collaboration opportunities to drive digitization more broadly within the commodities markets. The share exchange closed in two tranches on August 23, 2024 and September 9, 2024, with Abaxx now holding approximately 10.9% of MineHub on an outstanding basis.
• On September 11, 2024, the Company announced the appointment of Esther Babb as COO and the resignation of Mariana Southern as VP Product and Engineering. Ms. Babb brings over 20 years experience in multifaceted finance roles including scaling up and commercializing start ups and will be responsible for leading the execution of MineHub's strategic and operational activities.

Second Quarter Financial Highlights

• MineHub's revenue of $445,566 in the second quarter of fiscal 2025 was 21% higher than revenue of $375,071 generated in the prior year. SaaS revenue increased by $155,183, an increase of 53%, compared to Q2-FY2024, while professional services revenue decreased by $74,688 as the Company has shifted its focus to growing stable, recurring SaaS revenues.
• MineHub recorded a net loss of $1.6 million in Q2-FY2025, compared to a net loss of $1.5 million in Q2-FY2024. Excluding the impact of non-recurring other income booked in Q2-FY2024, MineHub's net loss for the current quarter was $622,688 lower than the prior year as the Company generated higher revenues and reduced costs.
• On July 30, 2024, the Company entered into a short-term promissory note in the amount of $450,000. The note bears interest at 8% per annum and is repayable on October 31, 2024.
• On July 31, 2024, MineHub also entered into loan agreements with the holders of its convertible debentures, which were set to mature on July 31, 2024. The principal and accumulated interest on the convertible debentures were rolled into new loan agreements that bear interest at 5% per annum and are repayable at the lenders' or Company's discretion.

Year to Date Financial Highlights

• MineHub recorded revenue of $1.2 million in the first half of fiscal 2025, an increase of 72% as compared to revenue of $716,707 generated in the prior year. SaaS revenue increased by $392,972 as a result of both new customer growth and a full six-month contribution from the Waybridge acquisition compared to the prior year. Professional services revenue increased by $121,632 as the Company completed a non-recurring project and recognized the remainder of the deferred revenue related to the project in Q1-FY2025.
• Net loss for the first half of fiscal 2025 was $2.9 million, compared to a net loss of $3.8 million in the first half of fiscal 2024. The decrease in net loss is primarily due to improved costs and increased revenue, partially offset by non-recurring other income in fiscal 2024.

Results of Operations

Key Goals for Fiscal 2025

MineHub is pleased to re-iterate its four goals for Fiscal 2025:

1. Continue to accelerate the Company's growth and increase the Annual Recurring Revenue (or "ARR")(1) by executing new customer contracts and adding ecosystem partners.
2. Improve profitability with cost containment strategies and increasing margins.
3. Expanding volumes of goods managed for customers leading to higher GMV of commodities transacted on the platform.
4. Leveraging MineHub's successful implementations with industry leaders to continue to grow the ecosystem of companies on the MineHub network.

Management has provided a fulsome update on the Company's progress toward these goals in the Business Outlook section of the MD&A.

Outlook

MineHub's long-term profitability is dependent on achieving ARR growth. The Company continues to maintain a robust sales pipeline with several opportunities advancing to later stages over the past quarter, but sales cycles are longer than initially estimated. Management believes that the platform enhancements, cost containment strategies and ongoing ecosystem growth have laid the foundation for growth in ARR and progress toward profitability in the long-term. The Company remains on track to achieve internal sales targets for the fiscal year.

In the short-term, profitability over the next several quarters may be highly variable. Management is not expecting any non-recurring professional services revenue as the Company has shifted its strategic focus toward annually recurring SaaS subscription revenue. In addition, MineHub may make further investments in personnel to ensure that the Company can scale to support planned revenue growth. These incremental costs may precede revenue and reduce short-term profitability.

Webinar Details

The Company will also host an investor webinar for its Second Quarter Fiscal 2025 Financial Results on Thursday, September 19, 2024, at 9:00am PT (12:00pm ET). Andrea Aranguren, CEO, and Monika Russell, CFO, will provide a corporate update, review the quarterly financial results, and discuss the business's outlook; followed by a Question & Answer session.

Registration Link: https://bit.ly/MHUB-Q2-2025
Date: Thursday, September 19, 2024
Time: 9:00 am PT (12:00 pm ET)
Dial-in: 778-907-2071 (Vancouver local)
647-374-4685 (Toronto local)
Confirmation #: 841 7925 5160

About MineHub

MineHub is the digital supply chain platform for the commodity markets, making raw material supply chains more efficient, resilient and sustainable. MineHub provides enterprise-grade digital solutions that connect buyers, sellers, laboratories and financiers within physical commodities supply chains in a digitally integrated workflow powered by data that is useable, shareable, verifiable and unforgeable. Users of MineHub solutions are in full control of their supply chains, enabling them to optimize their use of resources, respond better and faster to disruptions, and provide a better customer service. Global enterprises already use MineHub solutions as part of their logistics, compliance, trade management and financing operations.

Andrea Aranguren
CEO, MineHub Technologies Inc.

Cautionary Note Regarding Forward-Looking Statements

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains statements that are considered "forward-looking information" within the meaning of applicable Canadian securities legislation ("forward-looking statements") with respect to MineHub including, but not limited to, statements with respect to MineHub's future operational plans, the timing of such plans and anticipated customers. Forward-looking statements are statements that are not historical facts are generally, but not always, identi?ed by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although MineHub believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, are subject to risks and uncertainties, and actual results or realities may differ materially from those in the forward-looking statements. Such material risks and uncertainties include, but are not limited to, the Company's ability to raise su?cient capital to fund its operations, applications and for general working capital purposes, changes in economic conditions or ?nancial markets, changes in laws or regulations that could have an impact on the Company's operations, dependence on its key management personnel and market competition. Other risk factors are identified in the "Risks and Uncertainties" section of the Company's management discussion and analysis for the year ended January 31, 2024, available on the Company's SEDAR+ profile at www.sedarplus.ca. There may be other risk factors not presently known that management believes are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking statements. Although the Company has attempted to identify risk factors that could cause actual actions, events or results to differ materially from those disclosed in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Also, many of the factors are beyond the control of the Company. Accordingly, readers should not place undue reliance on forward-looking statements or information. The forward-looking information is made as of the date included herein, and the Company assumes no obligation to publicly update or revise such forward-looking information. Forward-looking statements are based on the reasonable beliefs, estimates and opinions of MineHub's management on the date the statements are made. However, except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors should change.

Footnotes:

(1)ARR is a Key Performance Indicator for the Company. Management considers ARR a key indicator of future recurring revenues and the trajectory of the business. ARR includes annualized revenue of all active SaaS platform revenue as of a specified point in time and assumes all active contracts are renewed on existing terms. ARR is subject to change through acquisition of new customers, and expansion or attrition of existing customers. ARR is not a standardized measure and may not be comparable to ARR disclosed by other issuers.

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