Mr. Craig Thomas reports

GAMEHOST ANNOUNCES THIRD QUARTER 2017 FINANCIAL RESULTS AND NOVEMBER 2017 DIVIDEND

Management and directors of Gamehost Inc. have released the results for the three and nine months ended Sept. 30, 2017.

Period and quarter comparable results include the prior-year closure of Gamehost's Boomtown Casino in Fort McMurray from May 3, 2016, to July 14, 2016. Readers are cautioned about drawing conclusions from comparisons of line item and overall results. Prior-year results include settlements negotiated with the company's insurer for business interruption claims stemming from 2016 wildfires that resulted in mass evacuations and business closures in the Fort McMurray area.

Total operating revenues for the quarter were up $200,000 or 1.2 per cent to $17.2-million, compared with $17.0-million in the same quarter of 2016. Total revenues after other revenue and non-controlling interests were down $600,000 to $16.4-million from $17.0-million. Earnings before interest, taxes, depreciation and amortization (EBITDA) that are attributable to shareholders of the company were down $200,000 or 2.7 per cent to $7.2-million, compared with $7.4-million in the same quarter of 2016. EBITDA to shareholders margin for the quarter improved to 43.9 per cent from 43.5 per cent in year-over-year comparison.

In Fort McMurray, the company turned in lower revenue results for the quarter in a challenging economic environment. The boost expected by the community's postwildfire rebuilding effort has not materialized or has been more than offset by cutbacks in the energy sector. The story is completely opposite farther to the south in Grande Prairie. Here, the company's properties again posted double-digit revenue gains year over year for the quarter. In Calgary, revenues were down moderately, in year-over-year quarterly comparison.

Though top-line operating results are still mixed, Gamehost is pleased with efforts to manage costs and progress on other fronts. The company reduced debt by $1.9-million during the quarter on improved cash flow from operations and a reduction in income tax instalments. The company's dividend payout ratio improved to 89.6 per cent, from 93.5 per cent in year-over-year comparison for the quarter.

Improvement in Alberta's consumer confidence is key to a return to broad organic growth in Gamehost's business. To this end, the company is hopeful as it heads into the final quarter while witnessing some sustained firming of the price of oil, which has appreciated 25 per cent since the start of summer.

   
               CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
          (in millions of dollars, except per-share figures and as noted) (unaudited)

                                           Nine months ended Sept. 30         Three months ended Sept. 30
                                                    2017         2016                   2017         2016

Operating revenue                                $  50.5      $  49.9                $  17.2      $  17.0
Cost of sales
Other                                              (27.7)       (27.5)                  (9.1)        (9.3)
Depreciation                                        (1.3)        (1.5)                  (0.4)        (0.5)
                                                   (29.0)       (29.0)                  (9.5)        (9.8)
Gross profit                                        21.5         20.9                    7.7          7.2
Other income                                         0.1          1.8                      -          0.6
Administrative expenses
Other                                               (2.2)        (2.3)                  (0.7)        (0.6) 
Depreciation                                        (1.0)        (1.1)                  (0.3)        (0.4) 
                                                    (3.2)        (3.4)                  (1.0)        (1.0) 
Profit from operating activities                    18.4         19.3                    6.7          6.8
Net finance costs                                   (0.7)        (0.8)                  (0.2)        (0.3) 
Profit before income taxes                          17.7         18.5                    6.5          6.5
Income tax expense                                  (4.6)        (5.8)                  (1.7)        (2.0) 
Profit                                              13.1         12.7                    4.8          4.5
Profit attributable to
Shareholders                                        12.3         11.8                    4.5          4.2
Non-controlling interest                             0.8          0.9                    0.3          0.3
                                                    13.1         12.7                    4.8          4.5
Earnings per share                      
Basic and fully diluted                          $  0.50      $  0.48                $  0.18      $  0.17
EBITDA to shareholders                              19.9         20.9                    7.2          7.4
EBITDA to shareholders                             41.3%        41.8%                  43.9%        43.5%

Gamehost has also declared a cash dividend for the month of November, 2017, of 5.75 cents per common share. The dividend will be paid on Dec. 15, 2017, to shareholders of record on Nov. 30, 2017. The ex dividend date is Nov. 28, 2017.

This dividend is considered an eligible dividend and therefore is eligible for the enhanced gross-up and dividend tax credit available to shareholders.

We seek Safe Harbor.