An Update on Sazmining's Paraguay Site and the Path Forward

Dear Sazmining Community,

In our commitment to honesty and transparency, we want to keep you informed about recent developments concerning our Paraguay site. Unfortunately, our Paraguay location is currently experiencing intermittent curtailment.

To provide you with a comprehensive understanding of the situation, here are the key details and our plans moving forward:

What is Curtailment?

• Curtailment, in our context, refers to the temporary reduction or restriction of electrical power at our Paraguay site. This reduction is a result of unforeseen circumstances related to our hosting provider.

Current Facility Status:

• We estimate an annualized uptime of greater than 80%, as opposed to the initially expected 95%. Summer in Paraguay is presenting challenges, with current uptime at 61%.
• It's improving and is about twice the uptime during the same period last year. In fall, the next season in Paraguay, monthly uptime estimates are greater than 80% as the heavy curtailment season ends.

Mitigation Strategies:

• To minimize downtime, our operator is implementing measures such as placing units into lower power mode and considering overclocking units by up to 30%, dependent on weather and power availability.
• We've secured 1.5MW of our 5MW capacity without curtailment and are continuing work towards 95% uptime
• Integration of curtailment operations with the utility is underway to enhance efficiency and increase power availability.

The Way Forward:

• We are revamping our billing process to ensure you pay only for the power you consume, reflecting our commitment to fair and transparent practices.
• For clients who may no longer wish to continue with us, we are facilitating the sale of mining equipment.
• We are making updates to the mining dashboard to reflect when miners are being curtailed.
• A Town Hall meeting was held for our Paraguayan clients to discuss the situation openly. We plan to continue monthly Town Halls to address client concerns and questions.

Customer Support:

• Our team is working diligently to minimize the impact on our customers.
• We appreciate your patience as we undergo a complete overhaul of our automated systems to ensure accurate billing.
• Feel free to schedule a 15-minute one-on-one call with our team to discuss the situation further after reviewing the Town Hall meeting recording.

We understand the frustration this situation may cause, and we want to assure you that customer satisfaction and transparency remain our top priorities.

Thank you for your business and trust as we navigate these challenges together.

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Best regards,

The Sazmining Team