Harnessing Bhutan’s hydroelectric power to serve surging AI compute demand in India, the Project targets an estimated 100 MW of renewable-powered AI infrastructure, scalable to an estimated 500 MW, extending SATO’s Québec hydro model internationally.

Toronto, Ontario–(Newsfile Corp. – July 6, 2026) – SATO Technologies Corp. (TSXV: SATO) (OTCQB: CCPUF) (“SATO” or the “Company“) today announced that it has signed a letter of intent, with an effective date of June 20, 2026 (the “LOI“) with the Gelephu Mindfulness City Authority (the “GMCA“), the governing and regulatory authority of the Gelephu Mindfulness City Special Administrative Region (the “GMC“) in the Kingdom of Bhutan, to develop a renewable-energy-powered, phased AI data centre campus (the “Project“). The LOI establishes a framework for the parties to negotiate definitive agreements covering power, site development, project structure, early works, financing and commercial offtake (the “Proposed Transaction“).

The signing of the LOI marks SATO’s strategic expansion into sovereign AI compute alongside its existing operations in Québec. The Project is anticipated to create a large-scale AI infrastructure anchored in reliable domestic renewable power and developed in partnership with the GMCA, pairing Bhutan’s hydroelectric resources with demand for advanced AI infrastructure originating in South Asian and Indian markets.

Pursuant to the LOI, GMC will reserve 100MW of firm power for the Project, subject to an initial development phase of 5 MW, with a potential expansion pathway to 500MW. Additional commercial terms customary for transactions such as the Proposed Transaction will be finalized in binding definitive agreements (the “Definitive Agreements“) within 12 months following the signing of the LOI.

Bhutan is amongst the world’s few carbon-negative countries, and generates all its electricity through renewable sources, primarily from hydropower. It is also, according to IMF projections, one of the fastest-growing economies in the world.

At the same time, India is one of the world’s fastest-growing AI markets, yet domestic data-centre expansion is increasingly constrained by power availability and multi-year grid timelines.^[1] Sited directly across the border in the GMC and powered by clean hydroelectricity, the Project is anticipated to deliver low-latency AI compute to India’s major demand centres.

The Project is expected to be developed within GMC, the Special Administrative Region initiated and championed by His Majesty King Jigme Khesar Namgyel Wangchuck, The Druk Gyalpo. GMC reflects His Majesty’s long-term vision for Bhutan: To create a vibrant economic hub by providing a conducive business environment and compelling incentives, while fostering a Mindfulness City encompassing conscious and sustainable businesses, inspired by Buddhist spiritual heritage and distinguished by the uniqueness of the Bhutanese identity. SATO is honored to contribute to the realization of this vision.

SATO brings years of experience operating dense, hydro-powered digital infrastructure. Just as SATO’s facility in Québec demonstrated the value of clean-energy compute, Bhutan’s hydro resources could offer an abundant, stable, well-priced and low-carbon foundation for next-generation AI workloads.

Completion of the Proposed Transaction is subject to a number of conditions, including but not limited to completion of any required financing, approval by SATO’s board of directors, satisfactory due diligence by both parties, and execution of the Definitive Agreements. There can be no assurance that the Proposed Transaction will be completed as proposed or at all. Even if the Definitive Agreements are signed, the Proposed Transaction may not be completed. The Company will notify shareholders and provide the key terms of the Definitive Agreements via news release if the Definitive Agreements are signed or if the LOI is terminated.

Investors are cautioned that, except as disclosed in SATO’s filings on SEDAR+, information regarding the Proposed Transaction may not be complete and should not be relied upon. The TSX Venture Exchange has in no way passed upon the merits of the Proposed Transaction and has neither approved nor disapproved the contents of this news release.

Statements

“This project is the product of a deliberate effort to find the next jurisdiction where clean, sovereign power and serious AI ambition meet,” said Mathieu Nouzareth, Co-Founder and Director of SATO, who originated and leads the project. “Bhutan offers a rare combination of hydroelectric resources and forward-looking governance. We are honored to help advance His Majesty The King’s vision for Bhutan.”

Gelephu Mindfulness City was conceived under His Majesty The King’s vision of an economy built on Bhutan’s values and its abundant clean energy,” said Pang Yee Ean, Co-Chief Executive Officer of Gelephu Mindfulness City. “Sustainable, high-value digital infrastructure of this kind is exactly what GMC was created to attract. We welcome SATO to our Green Technology Valley and look forward to a project that reflects our commitment to environmental stewardship, advanced technology, and long-term prosperity for the region.”

“Bhutan has always measured progress by the wellbeing of its people and the health of its land,” said His Eminence Kalu Rinpoche, lineage holder of the Shangpa Kagyu tradition and a founding force behind the project. “If the tools of this new age are guided by wisdom and compassion, they can serve humanity rather than diminish it. It is my hope that this project takes root in that spirit, bringing opportunity to Bhutan and to the region while remaining true to the values of this land.”

SATO was advised on its Bhutan engagement by Anders Forsberg, who has supported the partnership since its early stages.

About SATO Technologies Corp.

SATO, founded in 2017, is a publicly listed company providing efficient computing power. The Company currently operates one data center tailored to provide computing power for bitcoin mining. The Company is listed on TSX.V:SATO & OTCQB:CCPU.F. To learn more about SATO, visit www.bysato.com.

About Gelephu Mindfulness City

The Gelephu Mindfulness City Special Administrative Region is a visionary initiative creating a world-class economic hub in southern Bhutan, centred on mindfulness, sustainability, and innovation. The SAR integrates traditional Bhutanese values with globally recognised legal frameworks, cutting-edge design and technology, while harnessing the Kingdom’s abundant renewable energy resources to serve as a global exemplar of holistic development.

Forward-Looking Information

This news release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities laws, including statements regarding the proposed development of the Project; the Proposed Transaction and the effects thereof; the terms of the LOI; the negotiation and execution of the Definitive Agreements; anticipated capacity, timelines and structure of the Project; SATO’s expansion into AI compute; applicable regulatory approvals required for the Proposed Transaction; and potential financing and any arrangements related to the Project. Forward-looking information is based on assumptions and is subject to risks and uncertainties. Substantial portions of the LOI are non-binding and there can be no assurance that the parties will negotiate or execute the Definitive Agreements, that the Project will proceed on the terms described or at all, that required financing or approvals will be obtained, or that any anticipated capacity, timelines or benefits of the Project will be realized. Material risk factors and assumptions are described in SATO’s continuous disclosure filings available under its profile on SEDAR+ at www.sedarplus.ca. SATO undertakes no obligation to update forward-looking information except as required by law.

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.