INVESTOR PRESENTATION TICKER: CLSK MAY 2018 OTC:CLSK CONFIDENTIAL - PowerPoint PPT Presentation

INVESTOR PRESENTATION TICKER: CLSK MAY 2018 OTC:CLSK CONFIDENTIAL

Statements in this presentation relating to plans, strategies, testing and operational performance, projections of results of specific activities and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities SAFE Exchange Act of 1934, as amended. This release contains "forward-looking statements" that include information relating to future events and future financial and operating performance. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forwardlooking statements. Forward-looking statements should not be HARBOR read as a guarantee of future performance or results, and will not necessarily be accurate indications of the times at, or by, which that performance or those results will be achieved. Forward-looking statements are based on information available at the time they are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause STATEMENT actual performance or results to differ materially from those expressed in or suggested by the forward- looking statements. Important factors that could cause these differences include, but are not limited to: fluctuations in demand for the Company's products, the introduction of new products, the Company's ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company's liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in the Company's filings with the United States Securities and Exchange Commission (the "SEC"). For a more detailed description of the risk factors and uncertainties affecting the Company, please refer to the Company's recent SEC filings, which are available at http://www.sec.gov. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. OTC:CLSK CONFIDENTIAL

INVESTOR HIGHLIGHTS WE ARE POSITIONED TO CAPITALIZE ON THE DOMESTIC AND GLOBAL RESHAPING OF ENERGY GENERATION, STORAGE AND DISTRIBUTION By offering industry leading critical power equipment and powerful data driven software controls, our market potential touches the majority of energy intensive grid connections throughout the country, and even the world. BUSINESS HIGHLIGHTS Our software platform enables the integration of a variety of power generation sources into the ever expanding distributed electric grid and Pioneer's Custom Electric Products are an integral component of connecting power generation sources to the grid Together, we offer all distributed power project developers and producers of power generation assets a one-stop shop for creating a fully integrated distributed energy resources Our position in the market means our investors success is not tied to the success or downfall of a single type of energy technology. Integrated Hardware and software solution leads to significant margin expansion for the combined company Company has established channels to market through strategic partners and self-development. MARKET: WHY US - WHY NOW Distributed energy resources pose the biggest disruption to the utility business model in a century, sales of DER products are expected to grow 3 to 5 times faster than central grid products ( Navigant Research ). The grid is getting more distributed, the distributed energy market is growing at a compound rate of 21% The confluence of technology improvements occurring today is more compelling, more efficient and more accessible than ever before. FINANCIAL Acquisition of Pioneer CEP brings $15 Million dollars of annual baseline revenue to CleanSpark Pioneer CEP’s revenue has grown at an average compound rate of 47.8% over the past 5 years. Sizable and growing backlog under contract of approximately $9.5 million for manufacturing in 2018 and early 2019. Revenues of Pioneer CEP from January 1, 2016 to current exceed $34 million Proposals delivered and outstanding of $40mm+ for 2018/2019 OTC:CLSK CONFIDENTIAL

OUR BUSINESS CleanSpark’s Distributed Energy Resource (DER) Solutions Manage Powerflow to Create the Benefits our Customers Care About: BUSINESS SEGMENTS: Project Development and 1 2 3 Software and Controls Hardware Sales Engineering Services Avg. Margin – 80-95% Avg. Margin – 10-40% Avg. Margin – 15-25% OTC:CLSK CONFIDENTIAL

CLEANSPARK BRANDS By offering industry leading critical power equipment and powerful data driven software controls, our market potential touches the majority of energy intensive grid connections throughout the country, and even the world. OUR TECHNOLOGY CAN INTEGRATE INTO ANY POWER GENERATION OR STORAGE ASSET: SOFTWARE Software Controller Patented Intelligent Controls and Analytics Switch gear Transmission Customer Building & Distribution Critical Infrastructure MicroTurbines Equipment Fuel Cell Solar Panels OTC:CLSK CONFIDENTIAL

OUR BUSINESS CleanSpark’s Distributed Energy Resource (DER) Software and Control Platform Manages Powerflow to Create the Benefits our Customers Care About: 1 CUSTOMER VALUE PROPOSITIONS –WE PROVIDE SOLUTIONS TO MEET OUR CUSTOMER EXPANDING NEEDS Revenue Generation Control of Distributed Power quality Sustainability energy assets Energy Resiliency Critical power protection Energy Cost avoidance INCORPORATED WITH OUR HARDWARE 2 ENABLED BY OUR SOFTWARE Integrated Power Centers & Advanced optimization of power Custom Switchgear systems Enabling Distribution and Standardized Plug-and-Play Isolation Hardware Ecosystem Distributed Generation and Flexibility for the Future Microgrid Equipment OTC:CLSK CONFIDENTIAL

OPPORTUNITY THROUGH INTEGRATION PARALLELING SWITCHGEAR SOFTWARE Inte tegrated s strate tegy – Pioneer Power Custom Electric Products(PCEP) was recently awarded a contract to build a $2.3 Mil. parallel switch gear. As part of the scope of the project PCEP is required to integrate energy monitoring software. The budget for the software integration is approximately $350,000. Historically this has been a COS COST for PCEP. CleanSpark is able to provide this software turning the costs into REVENUE REVENUE. Software margins on direct costs are as high as 80-90% by integrating the software in-house the projects gross margin can increase from 7-12% to 20-25%. OTC:CLSK CONFIDENTIAL

A GROWING ECOSYSTEM OF PARTNERS CREATING REVENUE GROWTH Strong foundation of trusted relationships cultivating an ecosystem of deal‐flow CHANNELS TO MARKET DEVELOPERS & ENERGY STORAGE ENGINEERING, PROCUREMENT, AND DISTRIBUTORS VENDORS CONSTRUCTION SELF-DEVELOPMENT Development strategy of engaging directly with Customers with repeat business opportunities. REITS AND PORTFOLIO PROPERTY OWNERS MILITARY AND GOVERNMENT OTC:CLSK CONFIDENTIAL

EQUIPMENT CUSTOMER SEGMENTS BACKUP GENERATION PARALLELING SWITCHGEAR INTEGRATED POWER CENTER Fully contained power Multi-year relationship Deployed on Multiple US centers engineering for First order 6/2016 Embassies users specific needs $5mm annualized sales Expected 10 year deal High-dollar value orders Systems provided power flow with repeat customers First 2 projects > $1mm through Hurricane Harvey in revenue OTC:CLSK CONFIDENTIAL

SOFTWARE AND MICROGRID CUSTOMER SEGMENTS TURNKEYMICROGRID DESIGN AND ENGINEERING AND DEVELOPMENT SERVICES Portfolio strategy – full property Military contractor since 2014 portfolio was analyzed and ranked for Currently executing on $900,000 turn-key ability to economically optimize power microgrid at USMC base Camp Pendleton Cost avoidance is key driver System supports mission critical data- Economically optimized solutions center designed by CleanSpark under an Designed remote deployment microgrid engineering services agreement solution for USMC. (pending Software paired with DER assets allows implementation) REITs to turn power from an expense to revenue OTC:CLSK CONFIDENTIAL

COST REDUCTIONS IN SOLAR MODULES AND ENERGY STORAGE IS CHANGING THE ENERGY MARKET OPPOR OPPORTUNIT UNITY COST REDU REDUCTION CTION TECHNOLO LOGY I IMPROV OVEMENTS OTC:CLSK CONFIDENTIAL

DISTRIBUTED ENERGY MARKET IMPACT 60% of our equipment is deployed on distributed energy projects. Although our growth is correlated to 60% the DER market, we are insu insulated from most technology adoption risk as we can enable optimal performance of an any technology The global market for DER products and services will generate 1.3 Billion annually in new revenue opportunity's globally ( Navigant ) . ENERGY STORAGE MARKET WILL LEAD GROWTH The US energy storage behind-the- meter market gre grew 79% 79% year-over- year in 2017 Bloomberg New Energy Finance forecasts the global energy storage market will “double double six times six times” from 2017 to 2030. OTC:CLSK CONFIDENTIAL

MICROGRID CONTROLS MARKET SIZING BUSINESS PRESENTTAION DESIGN GLOBAL MARKET Roughly $500 million was invested into controls technology in 2017 and that figure is expected to increase annually to over $2 billion in 2026. OTC:CLSK CONFIDENTIAL