Terawulf Inc. · NASDAQ:WULF

Terawulf — Investor Presentation (June 2022)

30 slides from Terawulf's investor presentation, Jun 14, 2022

1. Slide 1: An Infrastructure-Focused Mining Company

   1 NASDAQ: WULFJune 2022An Infrastructure-Focused Mining CompanyAccelerating the Transition to a Zero-Carbon Future

2. Slide 2: Safe Harbor Statement

   SAFE HARBOR STATEMENT Thispresentationisforinformationalpurposesonlyandcontainsforward-lookingstatementswithinthemeaningofthe"safeharbor"provisionsofthePrivateSecuritiesLitigationReformActof1995,asamended.Suchforward-lookingstatementsincludestatementsconcerninganticipatedfutureeventsandexpectationst

3. Slide 3: Our Mission

   Our MissionTo be the premier U.S. based, large-scale, zero-carbonbitcoin miner,generating attractive investorreturnswhile providingsustainable benefits forourcommunities. Experienced Energy EntrepreneursInfrastructure First​Scalable and FlexibleTransparent Governance ​Business Integrity​Respon

4. Slide 4: TeraWulf at a Glance

   (1)Average estimated bitcoin production cost assumes miner efficiency of 100 TH/s and global network hash rate of 215 EH/s. (2)Future estimates reflect anticipated infrastructure capacity based on current estimates and market conditions and are subjecttochange.TeraWulf at a Glance•Introducing a new

5. Slide 5: Significant Progress Establishing Mining and Digital Infrastructure

   Mar2022Feb2021Mar2021May2021Jun2021Dec2021 TeraWulf Formed Lake Mariner approved for NYPA’s HLF Program(3)$30M seed equity financingSEC Merger Review Process$50M equity financing Formed JV with Talen for 300 MW Nautilus facility in PACompleting buildout of two state-of-the-art, zero-carbon data cen

6. Slide 6: Why WULF Wins: The Four P's

   Why WULF Wins: The Four “P’s”Digital Asset Infrastructure FirstFoundation to Scale Experienced Energy EntrepreneursPower & InfrastructureExpertsSustainable, Scalable FacilitiesKey Relationships and Site ControlESG Principled and PracticedDriving the Future of Mining6 PlugsPeoplePowerPriorities

7. Slide 7: Plugs: Building Infrastructure to Scale Rapidly

   Note: Future estimates reflect anticipated infrastructure capacity based on current estimates and market conditions and are subject to change. All figures reflect TeraWulf’s 50% net JV interest in the Nautilus Cryptomine.Focusing on plug capacity ensures flexible growth through dynamic markets​Tera

8. Slide 8: People: Best-in-Class Management Team

   People: Best-in-Class Management TeamLed by an accomplished, diverse management team with 30+ years of experience in developing and managing energy infrastructureand disruptive technology N A Z A R K H A NCo-Founder, Chief Operating Officer & Chief Technology Officer20+ years in energy infrastructur

9. Slide 9: Power: Sustainable and Scalable Sites

   Power: Sustainable and Scalable Sites800 MWMining capacity by 2025 at existing sites> 91%ZERO-carbon power supply today, with goal of achieving 100%< 3 ¢ Per kilowatt hour target average power cost9 91%+ Zero Carbon(1)110 MW Available Exiting 2022500+ MW Hydro, Solar 100% Zero Carbon100 MW Available

10. Slide 10: Priorities: ESG Sits at TeraWulf's Core

    Positively impacting theenvironment through our operations SOCIALDiverse management team Strong service culture with emphasis on supporting veteransTrack record of stakeholder engagement and supporting communitiesFunding and participating in social health, environmental, and sustainability initi

11. Slide 11: Capital Raising Activity

    (1)Includes $15M first draw of debt from the agreed-in-principle, up to $50 million add-on facility from existing lenders, which remains subject to final documentation and various closing conditions. (2)March 2022 ATM proceeds include insider purchases of approx. $3M. $30 $80 $280 $300 $326 $356 $30

12. Slide 12: Current Business Outlook

    (1)Future estimates reflect anticipated infrastructure capacity based on current estimates and market conditions and are subjecttochange. All figures reflect TeraWulf’s 50% net JV interest in the Nautilus Cryptomine. (2)For illustrative purposes only; hash rate range reflects a blendof 100 and 140 T

13. Slide 13: Infrastructure First Model: Illustrative Annual Margin

    2.0 EH/s Self-Mining and 4.4 EH/s HostingPeriod Ending BTC Price(2) $20,000 $40,000 $60,000 $80,000 $100,000 Period Ending Global Hash Rate(1)(EH/s)250$92 $128 $164 $200 $237 275$87 $121 $155 $188 $222 300$83 $115 $146 $178 $209 325$80 $109 $139 $169 $198 350$77 $105 $133 $161 $189 375$74 $100 $127

14. Slide 14: Infrastructure First Business Modules and Payback

    Business Module / ServiceHost Rate($/kWh)Hosting Margin(1) ($)Profit Share(2) ($)Miner Price Discount(3) ($)Annual Value Capture ($)Infrastructure Cost(4)($)Payback Period(4)(yrs)Pure Hosting$0.065$31.2MN/AN/A$31.2M$52M1.66Profit-Share Hosting$0.065$31.2M$6.5MN/A$37.7M$52M1.38Host-to-Own$0.065$31.2M

15. Slide 15: TeraWulf is an Emerging Leader in Digital Asset Infrastructure

    TeraWulf is an Emerging Leader in Digital Asset Infrastructure•Best-in-class crypto mining due to low-cost, sustainable, and domestic bitcoin mining at industrial scale targeting zero-carbon energy leveraging nuclear, hydro, and solar resources•Vertically integrated, infrastructure first strategy en

16. Slide 16: Site Overviews

    SITE OVERVIEWS

17. Slide 17: Lake Mariner Data (NY)

    Lake Mariner Data (NY) 17 Location:Barker, NYOwnership:100%Site Control:Long-term leaseInfra. Capacity:500 MW totalYE ‘22: 110 MWPower Source:91%+ hydroDeployment:Completing constructionMiners1:18,000 S19 XPs(1)Reflects existing miner purchase agreements.

18. Slide 18: New York Regulatory Environment

    New York Regulatory Environment“NYPA is pleased to propose working with Lake Mariner Data, LLC to have 7725 Lake Road, Barker, NY participate in demand response programs in 2022, supporting TeraWulf’s goal to become a zero-carbon emissions crypto mining company.”New York Power Authority, April 2022

19. Slide 19: Lake Mariner: Locational Advantages

    Lake Mariner: Locational Advantages 19Access to abundant low-costhydro power and congestion dynamics mute impact of natural gas pricesSource: Cap IQ Energy Map Lockport CC capacity factor: 8.1% (2020) Indeck Silver Springs CC capacity factor: 8.5% (2020) Fortistar North Tonawanda CC: 3.7% (2020) •Ef

20. Slide 20: Lake Mariner: Demand Response Programs Provide Upside

    (1)The above information is for general information purposes only. Annual Revenue is for illustrative purposes only and should not be considered projections of TeraWulf’s operating performance. Sources include NYPA and independent service providers: http://icap.nyiso.com/ucap/public/auc_view_strip_s

21. Slide 21: Nautilus Cryptomine (PA)

    Nautilus Cryptomine (PA) 21 Location:Berwick, PAOwnership:50% (JV with Talen)Site Control:Long-term leaseInfra. Capacity:300 MW (150 MW net) totalYE ‘22: 100 MW (net)Power Source:Nuclear powerDeployment:Completing constructionMiners1:30,000 S19j Pros (15,000 net) 9,000 MV7s (4,500 net) (1)Reflects e

22. Slide 22: Nautilus: Facility Design Advantages

    Nautilus: Facility Design Advantages 22Reliable behind-the-meter zero-carbon energy •Data center design with extra redundancy and reliability to maximize online miner capacity•Both inlet and outlet air cooling (i.e., “push/pull”)•Robust building management system to optimize temperature control and

23. Slide 23: Appendix

    APPENDIX

24. Slide 24: Illustrative Power Cost Impact per BTC

    Electricity Opex & O/H Miners Note: For illustrative purposes only.(1)Assumed cost of power based upon estimated cost for an asset light bitcoin miner.(2)Network hash rate reflects BitOoda assumed average for 2023 as of April 28, 2022. https://www.bitooda.io/public-files/20220428 BitOoda Weekly Hash

25. Slide 25: Bitcoin Stock-to-Flow vs Price

    Bitcoin Stock-to-Flow vs Price Historic BTC price appreciation approaching halvingSource: https://studio.glassnode.com/metrics?a=BTC&category=&m=indicators.StockToFlowRatio $0.01$0.10$1.00$10.00$100.00$1,000.00$10,000.00$100,000.00$1,000,000.00$10,000,000.00201020122014201620182020202220242026 Stock

26. Slide 26: Sources & Uses: Prior Estimates vs. Current Plan

    Capital Raised, $356Funding Gap, $44SG&A + Deal Exp., $50 S19 XP Deposit, $83 SourcesUsesSources & Uses: Prior Estimates vs: Current Plan Equity / Equity Linked, $80 Planned Raise, $300 Cash, $12 Growth Capex, $44 Lake Mariner, $154 Nautilus, $171 SourcesUses$380M$380M$400M $400MCash, $1726 June 202

27. Slide 27: Sources and Uses: Capital Overview

    $38 $62 $34 $30 $60$20 $45 $40 Miner PaymentsInfrastructureOther ExpensesJune 2022 CapitalGross MarginCapital NeedSources and Uses: Capital Overview•Deployed $326M capital as of April 2022–$68M invested in infrastructure–$190M in miner payments–Balance is fees and other expenses•Incremental $30M cap

28. Slide 28: Accomplished, Diverse Board to Ensure Transparency and Accountability

    Accomplished, Diverse Board to Ensure Transparency and Accountability28 Name Board Position Committee Affiliation Paul PragerExecutive ChairmanCompensationCEO of TeraWulf Inc.Nazar KhanExecutiveCOO & CTO of TeraWulf Inc.Kerri LanglaisExecutiveCSO of TeraWulf Inc.Steve PincusIndependent (Lead)AuditEx

29. Slide 29: TeraWulf Charitable Foundation

    29Advancing TeraWulf’s Mission to Address Significant Societal Challenges of Today Founded in 2021, the Foundation focuses on funding and participating in social health, environmental and sustainable programs. Initial funding of 2.3% of outstanding WULF common stock.In collaboration with reputabl

30. Slide 30: Contact

    NASDAQ: WULFContact:​ir@terawulf.com​www.TeraWulf.com/contact

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