CleanSpark Awarded Contract for Feasibility Study for Development of Off-Grid Power Solution for Cannabis Grower

SALT LAKE CITY, Utah — CleanSpark, Inc. (OTCQB: CLSK), a microgrid company with advanced engineering, software and controls for innovative distributed energy resource management systems, today announced it has been selected to conduct a project feasibility study to Good Energy Solar for the creation of an independent and comprehensive power system for TMP Unlimited, Inc., a fully licensed, vertically integrated, cannabis cultivation, manufacturing, distribution and retail dispensary company located in California City, CA.

“We will apply our advanced energy systems expertise to scope and design a sustainable, affordable and reliable power system that meets expected demand for this customer in a greenfield space,” said Zach Bradford, President of CleanSpark. “It is an ideal opportunity for us to work directly with a customer at the start of a project to create a comprehensive design that demonstrates the compelling economics for them. We expect we will have the opportunity to perform the installation of the design, which is expected to be in excess of six figures in revenue to CleanSpark, in the next phase of their business development.”

“Given the remote location of their planned operations, local utility companies have been unable to commit to providing service in a timeframe that would support their business plans,” added Mr. Bradford. “This is a common challenge for large and sophisticated cannabis operations, which frequently require significant power to effectively operate, making traditional grid-based options unaffordable. By going off-grid with an alternative energy system, this customer will be able to create an independent energy infrastructure that directly meets their needs, greatly reduces their dependence on traditional energy sources and can scale as their business grows. As the industry continues to mature, we expect these deployments to become commonplace and CleanSpark is uniquely positioned to meet this significant and emerging need.”

Under the terms of the agreement, CleanSpark will produce a project feasibility analysis for the first phase of the customer’s project. The analysis will include the appropriate energy storage, solar PV system sizes, projected utility savings, capital costs, operations and maintenance costs and a 20-year economic financial model depicting the projects return on investment, cash flows and tax effects. The final recommendation is expected to include detailed specifications and implementation plans for a comprehensive solution with energy sources, storage and software controls sized to optimize performance.