CryptoStar Corp. Provides Update on Annual Filings

TORONTO, May 3, 2019 /CNW/ - CryptoStar Corp. (TSXV: CSTR) ("CryptoStar", or the "Company"), a cryptocurrency mining and data centre operator, announces today that as a consequence of failing to file its financial statements, management's discussion and analysis and related officer certifications for the financial year ended December 31, 2018 (collectively, the "Annual Filings") prior to the April 30, 2019 filing deadline under National Instrument 51-102 - Continuous Disclosure Obligations and National Instrument 52-109 - Certification of Disclosure in Issuers Annual and Interim Filings, the Company is currently noted in default on the reporting issuer lists of the Ontario Securities Commission, the Alberta Securities Commission and the British Columbia Securities Commission.

The Company has appointed Manning Elliott LLP, Chartered Professional Accountants, as its auditor and the audit of the Company's Annual Filings is ongoing. The board of directors and management of the Company are working expeditiously to meet the Company's obligations relating to the finalization of the Annual Filings.

The Company anticipates that it will be in a position to finalize and issue its financial statements and related disclosures shortly. The Company does not anticipate any delay in filing its interim financial statements, management's discussion and analysis, and the related officer certifications for the financial period ended March 31, 2019.

The reason for the default is due to timing and documentation constraints related to the accounting and auditing of digital currencies based on information provided by a specialist to the auditors on the Company's internal controls and systems related to the operations of the Company. The Company confirms that there are no insolvency proceedings against it as of the date of this news release. The Company also confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this news release.

About CryptoStar Corp.:

CryptoStar has one of the world's largest cryptocurrency mining operations with data centres located in the U.S.A, Canada and Iceland. CryptoStar is currently dedicated to further expansion into low cost energy regions in North America and around the globe.

CAUTIONARY NOTE REGARDING FORWARD LOOKING INFORMATION

Certain information in this news release constitutes forward-looking information. In some cases, but not necessarily in all cases, forward-looking information can be identified by the use of forward-looking terminology, such as "plans", "targets", "expects" or "does not expect", "is expected", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts, but instead represent management's expectations, estimates and projections regarding future events. Forward looking information in this news release, includes, but is not limited to, the completion of the audit of the Company's Annual Filings in an expeditious manner and the anticipated filing of the Company's interim financial report for the period ended March 31, 2019 together with related MD&A and officer certifications. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by CryptoStar as of the date of this news release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to the factors described in greater detail in the "Risk Factors" section of the Filing Statement dated August 17, 2018 in respect of the Qualifying Transaction of Aumento Capital VI Corporation, which is available at www.sedar.com. These factors are not intended to represent a complete list of the factors that could affect CryptoStar; however, these factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. The forward-looking statements contained in this news release are made as of the date of this news release, and CryptoStar expressly disclaims any obligation to update or alter statements containing any forward-looking information, or the factors or assumptions underlying them, whether as a result of new information, future events or otherwise, except as required by law.

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

SOURCE CryptoStar Corp.