Mr. Rod Baker reports

GREAT CANADIAN GAMING AWARDED FIRST BUNDLE IN ONTARIO GAMING MODERNIZATION PROCESS

Ontario Gaming East LP, a partnership in which Great Canadian Gaming Corp. owns a 50.1-per-cent share, was selected as the successful proponent by the Ontario Lottery and Gaming Corp. (OLG) to operate gaming facilities in OLG's gaming bundle 2 (east).

The east gaming bundle contains three gaming zones. The first gaming zone includes the township of Cavan Monaghan and the city of Peterborough and its surrounding areas and is currently served by OLG Slots at Kawartha Downs. The second gaming zone includes a new build opportunity to service the city of Belleville and the municipality of Quinte West. The third gaming zone includes the city of Kingston and its surrounding areas, including Gananoque and Leeds and Thousand Islands, and is currently served by OLG Casino Thousand Islands. Additional details about the current and planned scopes of the gaming operations in these zones are included in a supplemental schedule to this release.

As a result of being awarded this opportunity, Ontario Gaming East signed a business transition and asset purchase agreement with OLG on Sept. 8, 2015, and, subject to customary closing conditions, is committed to subsequently signing a 20-year casino operating and services agreement when the acquisition closes early next year. Under this agreement, Ontario Gaming East will acquire all of OLG's gaming assets in the east gaming bundle, including OLG Casino Thousand Islands and the slot operations within leased space at Kawartha Downs. The purchase price is $37.4-million plus cash of approximately $13-million to cover working capital.

Under the planned casino operating and services agreement, Ontario Gaming East will operate the gaming facilities in the bundle and will provide OLG a pre-established, guaranteed annual payment. In return, the partnership will receive an annual fee comprising, among other components, an annual base fee, as well as 70 per cent of gross gaming revenue above the applicable pre-established amount for each year. Additional specific details about the casino operating and services agreement and this planned financial arrangement are not permitted to be disclosed at this time under the terms of OLG's procurement process.

The closing date for the acquisition of the assets and undertaking contained within the east gaming bundle and assumption of certain liabilities from OLG, including the signing of a casino operating and services agreement with OLG, is expected to be completed in the first quarter of 2016 to allow time for transition planning and is subject to both regulatory approvals and the satisfaction of certain other customary closing conditions. The company also intends to enter into an operations management contract and a facility development contract with Ontario Gaming East, under which the company will earn associated fees for the provision of such services.

"We thank OLG for the opportunity to participate in the modernization of gaming in Ontario and are both honoured and excited to have been awarded this first gaming bundle," stated Rod N. Baker, president and chief executive officer of the company. "Great Canadian has been involved in gaming in Canada since 1982 and in Ontario horse racing at our Flamboro Downs and Georgian Downs properties since 2005. We look forward to this next chapter in the company's history and the opportunity to collaborate with the OLG and local municipalities to provide exciting entertainment experiences for each of the communities of the east gaming bundle, which will include a new gaming and entertainment facility for the community of Belleville or Quinte West. We are very excited to welcome OLG employees at the existing locations and we look forward to working with them after the anticipated completion of the acquisition early next year."

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