Ms. Isabel Guerrero reports

TANGELO GAMES ENTERS INTO WAIVER AND AMENDMENT TO CREDIT AGREEMENT

Tangelo Games Corp. has reached an agreement with its lenders to amend certain terms of its outstanding credit agreement. Tangelo previously completed a secured debt financing pursuant to an amended and restated credit agreement dated Nov. 16, 2015, which amended the terms of a prior credit agreement dated Jan. 30, 2015, as amended, among the company, as borrower, the subsidiaries of Tangelo, as credit parties, a syndicate of lenders and the lenders' administrative agent, Third Eye Capital Corp.

The company and its subsidiaries have entered into a waiver and amendment to the credit agreement with TEC, on behalf of the lenders, waiving breaches by the company of certain covenants and amending the covenant thresholds for future periods. Pursuant to the amendment, Tangelo's obligations to repay principal of $14-million (U.S.) on or before Dec. 31, 2016, have been amended, and the company is now obligated to pay the greater of $10-million (U.S.) and 90 per cent of the proceeds of any equity or M&A (mergers and acquisitions) transaction completed by Tangelo on or before March 31, 2017. No other repayment of principal will be due under the credit agreement until the facility matures. TEC also agreed to amend the current ratio, minimum cash, average daily active user and unique buyer covenants for the periods from Dec. 31, 2016, to March 31, 2017. As consideration for these amendments, among other things, the company agreed to pay to the lenders a $200,000 (U.S.) fee. Additionally, the company has agreed to amend the exercise price for 35 million non-transferable warrants issued by the company to the lenders to a price equal to the closing price of the company's common shares for the 10 trading days prior to this announcement (or as determined in accordance with the policies of the TSX Venture Exchange) in connection with the announcement of the amendment. The amendment is subject to certain conditions, including, but not limited to, approval by the TSX Venture Exchange of the amendment to the exercise price for the warrants.

About Tangelo Games

Tangelo Games, the parent company of Diwip and Akamon, is a developer of social and mobile gaming for PC (personal computer), Mac, iOS and Android platforms.

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