With reference to the half-annual report published on 23rd of August 2022

The first phase of our R&D project within Filecoin is now coming to its end.
The goal at launch was to arrive at a cost-effective hardware combination and
associated improvements on the software side ("architecture") in order to be
able to operate a competitive provider of file storage within distributed file
storage services such as what Filecoin facilitates.

The R&D team has tested and benchmarked over 500 different setups during Phase
1.

The architecture this R&D effort has led to turns out to be very promising, and
significantly cheaper than out-of-the-box solutions offered on the market today.
The business development team has organized a preliminary business plan to
initiate operation of a data center based on the aforementioned architecture.

The last part of phase 1 involves having the architecture verified by an
external third party. We receive a grant from Protocol Labs to use their
hardware consultant of choice in this effort. The consultant is well underway in
verifying the content of the report that describes the architecture.

Harmonychain AS has founded a SPV, and we are in dialogue with interested
financial partners.

The plan with the SPV is to start operations with a scaled proof-of-concept of
the aforementioned architecture. If the Proof-of-concept delivers as expected
technically and financially, the operation can be scaled to an economically
sustainable size.

For more information, contact CEO Ola Stene-Johansen at osj@lokotech.no