Mr. Spyros Karellas reports

TANGELO GAMES REPORTS YEAR END FINANCIAL RESULTS

Tangelo Games Corp. has released its financial results for the fourth quarter and year-end of 2017 (the three- and 12-month periods ended Dec. 31, 2017).

                                   FOURTH QUARTER FINANCIAL SUMMARY
                           (in millions of dollars, except per-share amounts)

                                                            Quarter ended                 Year ended
                                                                  Dec. 31                    Dec. 31
                                                        2017         2016          2017         2016         

Revenue                                             $   8.81     $   9.35      $  35.51     $  39.57
Adjusted EBITDA*                                        2.86         3.14          9.80        11.86
Transaction costs, severance and restructure 
costs, depreciation of equipment, amortization 
of intangibles, stock-based compensation, and 
impairment of goodwill                                 34.55         6.24         43.75        16.41
Operating (loss)                                      (31.69)       (3.10)       (33.95)       (4.55)
Other charges          
Interest and accretion, changes in value 
of long-term debt, foreign exchange                     3.53         7.23         11.32        14.70
(Loss), continuing operations, before income tax      (35.23)      (10.33)       (45.27)      (19.24)
Net (loss), continuing operations                     (34.27)       (9.59)       (43.63)      (17.96)
Net income/(loss), discontinued operations              0.01         0.01         (0.04)        0.04
Total net (loss) for the period                       (34.26)       (9.58)       (43.67)      (17.92)
Basic and diluted (loss) per share, 
continuing operations                               $  (0.19)    $  (0.05)     $  (0.24)    $  (0.10)
Basic and diluted income/(loss) per 
share, discontinued operations                      $   0.00     $   0.00      $  (0.00)    $   0.00

* See non-IFRS (international financial reporting standards) measures.

Tangelo's Q4 results can be found on the company's website or on SEDAR.

James Lanthier, chief executive officer of Tangelo, commented:

"As previously disclosed, in the fourth quarter of 2017, Tangelo's revenue grew from the immediately prior quarter by 4 per cent to $8.81-million. In the first quarter of 2018, Tangelo recorded $8.61-million in revenue -- slightly down but actually up on a daily average revenue basis.

"We attribute this to our continuous efforts to improve the cadence and quality of our customer relationship management, as well as our mix of promotions and content. Monthly average paying users were approximately 56,000 for the fourth quarter and 52,000 for the first quarter. Promisingly, paying users for Tangelo Israel are now growing year over year and were up by 18 per cent in the first quarter of 2018 from the year before, with the majority of this growth coming through reactivating former customers from the company's large database of historical customers.

"New product development is essential to the longer-term growth of revenue. With the migration at Tangelo Spain coming to an end in 2018, we will be able to accelerate new product delivery. Games representing the majority of our revenue will be fully migrated to Unity by July, with the majority of our remaining games migrated through the rest of the year. Best Jackpot, our new English language app, is in final beta testing, and we expect it to be widely released in the coming weeks. A revitalized Spanish-language Bingo Rider app will be released in May. The Mundijuegos app release has been pushed to July in order to ensure that we maximize the range of content available to users.

"In the fourth quarter, the company registered an impairment charge, incurring a net loss of $34.27-million, up from $9.59-million in the fourth quarter of 2016. Tangelo delivered adjusted EBITDA of $2.86-million in the fourth quarter, up 41 per cent from the third quarter and down 9 per cent year over year."

As previously discussed, management has pursued a number of potential strategic alternatives with a view to improving its capital structure and unlocking value for all stakeholders. While the company cannot offer any assurances that these discussions will result in a successful transaction, they are continuing. The company will, obviously, update the market when or if a material development arises.

Financial results and non-IFRS measures

The company has included certain non-IFRS performance measures, namely EBITDA (defined below) and adjusted EBITDA, and working capital, within this press release. The company believes that, in addition to conventional measures prepared in accordance with IFRS, the company and certain investors and securities analysts use this information to evaluate the company's performance and ability to generate cash, profits and meet financial commitments. These non-IFRS measures do not have any standardized meaning under IFRS and therefore may not be comparable with similar measures presented by other issuers. These non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA is defined as earnings before interest, tax, depreciation and amortization. Adjusted EBITDA adjusts EBITDA for due diligence and transaction costs and restructure and severance expenses as these are generally non-recurring. The company removes stock-based compensation in calculating adjusted EBITDA as it is a non-cash expense that can vary significantly depending on the timing of option grants. EBITDA does not include the discontinued operations of Vast and Tech Channel.

About Tangelo Gaming Corp.

Tangelo Gaming, the parent company of Tangelo Israel and Tangelo Spain, is a developer of social and mobile gaming for desktop, iOS and Android platforms. Tangelo Israel and Tangelo Spain design, develop and distribute their top-ranked social casino-themed games within on-line social networks (such as Facebook) and mobile platforms (such as Android and iPhone). All of the Tangelo Israel and Tangelo Spain games are free to play and generate revenue primarily through the in-game sale of virtual coins.

We seek Safe Harbor.