Mr. David Feller reports

MOGO ANNOUNCES THIRD QUARTER 2015 FINANCIAL RESULTS

Mogo Finance Technology Inc. today released its financial results for the third quarter ended Sept. 30, 2015. The third quarter also included several enhancements to Mogo's technology platform, continued progress in the company's new product development efforts and strengthening of the management team.

"With a membership base of over 150,000 and growing, and more than $100-million invested to date in our platform, we believe Mogo is building the leading digital financial brand and technology platform in Canada," said David Feller, Mogo's founder and chief executive officer. "There is a digital transformation happening in financial services, which is being driven by millennials who are demanding the convenience of a fully digital experience. As highlighted in a recent McKinsey report on the banking industry, this transformation will put at risk up to 60 per cent of banks' retail profits to innovative financial technology firms. With our next-generation technology platform and millennial-focused brand, we have positioned Mogo at the heart of this disruption. From our successful start in consumer lending, our plan is to build a broader suite of financial products that leverage our platform and growing member base."

"Year-on-year revenue increased 70 per cent driven by the success of our instalment loan product, which exceeded our initial expectations and validates our strategy to target the broader $280-billion Canadian consumer loan market," said Greg Feller, Mogo's president and chief financial officer. "Our business model continues to drive strong underlying economics as we scale revenue. Going forward, we plan to focus on disciplined growth of our loan portfolio while balancing this with continued investments in our technology platform, development of less capital-intensive products and demonstrating a clear path to profitability."

Mogo reports in Canadian dollars and in accordance with international financial reporting standards.

Third-quarter financial highlights

• Total revenue for the third quarter of 2015 was $11.6-million, a 70-per-cent increase from the third quarter of 2014. Within this, loan interest revenue grew 418 per cent, driven by the success of the company's line of credit and instalment loan products;
• Gross profit margin was 62.5 per cent in the third quarter of 2015, up 50 basis points from the second quarter of 2015;
• Gross loans receivable increased by 192 per cent to $53.9-million in the third quarter of 2015, compared with the third quarter of 2014. Within this, long-term loans receivable represented 68 per cent of the total gross receivable, up from 24 per cent in the third quarter of 2014, driven by the successful ramp of the company's instalment loan product;
• Loan originations for the third quarter of 2015 were $82.4-million, up 81 per cent from the third quarter in 2014;
• The company's provision rate decreased to 4.3 per cent in the third quarter of 2015 from 4.6 per cent in the second quarter of 2015 based on the continued mix shift in the company's loan portfolio to higher credit quality liquid instalment loan customers;
• Reported positive contribution of $4-million in the third quarter of 2015, up from $2.3-million in the third quarter of 2014;
• Cash flow used in operations before investment in loan receivables was $800,000 in the third quarter of 2015, compared with $1.5-million in the third quarter of 2014;
• At Sept. 30, 2015, Mogo had $39.9-million in cash and cash equivalents.

Third-quarter business highlights

• Exceeded 158,000 total Mogo members, up 148 per cent from the third quarter of 2014;
• Loan products and unique level-up program driving compelling customer lifetime value;
• Finalized new expandable credit facility of up to $200-million under certain conditions, with Fortress Credit Co. LLC, to finance the continued expansion of the company's consumer instalment loans;
• Continued additions to the company's industry-leading technology, development and product teams, which now total 100 members;
• Strengthening of the senior management team with the additions of key team members including financial industry veterans: Lisa Skakun, who joined Mogo from Canada's leading credit union as chief legal and administrative officer, Carlos Medeiros, who joins the company as vice-president of credit risk, and Shirley Chen, who joins as Mogo's treasurer.

Outlook

Mogo is providing the following outlook regarding the fourth quarter of 2015 and the full year of 2016:

• As the company continues to execute on the strategy of building Canada's leading digital financial platform, it is critical to balance the use of capital between the disciplined growth of the company's loan portfolio, and the continued investment in platform and new products that will drive future growth;
• The company is also focused on achieving profitability and plans to reduce marketing spend in the fourth quarter of 2015, which it expects will moderate its loan growth rate, demonstrate operating leverage and reduce net losses;
• In 2016, the company expects to increase the mix of non-capital-intensive, fee-based revenue, through the introduction of new products, including the new Mogo prepaid Visa, the Mogo mortgage and Mogo marketplace lending.
• Management reiterated expectation of reaching EBITDA (earnings before interest, tax, depreciation and amortization) positive in 2016;
• The selected financial information included in this release is qualified in its entirety by, and should be read together with the company's full financial statements and management's discussion and analysis, which are available on SEDAR or the company's website.

Conference call and webcast

Mogo will host a conference call to discuss its 2015 third quarter financial results at 5 p.m. EST on Nov. 10, 2015. The call will be hosted by Mr. Feller, founder and CEO, and Mr. Feller, president and CFO. To participate in the call, dial 647-427-7450 or 1-888-231-8191 using the conference ID 64753693. The webcast can be accessed through the company's website. Listeners should access the webcast or call 10 to 15 minutes before the start time to ensure they are connected.

                                                                        
                          INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS

                                                              Three months ended                   Nine months ended
                                                                        Sept. 30,                           Sept. 30,

                                                          2015              2014              2015              2014
Revenue
Loan fees                                            7,746,712         5,554,861        22,706,800        12,455,001
Loan interest                                        2,347,806           453,624         4,863,059           740,078
Other revenues                                       1,457,451           795,916         3,452,435         1,758,733
                                                    11,551,968         6,804,402        31,022,294        14,953,812
Cost of revenue
Provision for loan losses, net of recoveries         3,579,650         2,036,250         9,800,557         4,367,318
Transaction costs                                      751,348           435,702         1,901,526         1,103,135
                                                     4,330,998         2,471,951        11,702,083         5,470,453
Gross profit                                         7,220,971         4,332,450        19,320,211         9,483,359
Operating expenses
Technology and development                           2,133,548         1,099,225         5,371,624         2,885,892
Customer service and operations                      2,394,057         1,525,708         6,366,208         3,806,657
Marketing                                            3,655,782         1,794,011         8,213,853         3,356,629
General and administration                           3,008,448         1,370,233         7,294,009         3,710,294
Total operating expenses                            11,191,835         5,789,177        27,245,694        13,759,472
(Loss) from operations                              (3,970,864)       (1,456,726)       (7,925,483)       (4,276,113)
Other expenses
Unrealized foreign exchange loss (gain)                436,721           293,374           893,002           314,143
Funding interest expense                               820,702           517,349         2,246,437           704,898
Corporate interest expense                           1,568,935         1,532,009         4,682,852         4,520,790
Other financing (income) expenses                        5,716           126,611             4,565           647,327
                                                     2,832,074         2,469,343         7,826,856         6,187,158
(Loss) before income taxes                          (6,802,938)       (3,926,069)      (15,752,339)      (10,463,271)
Provision for income taxes                               3,779               137             3,353               170
(Loss) and comprehensive loss                       (6,806,717)       (3,926,206)      (15,755,692)      (10,463,441)

(Loss) per share
Basic and fully diluted                                 (0.375)           (0.512)           (0.867)           (1.364)
Weighted average number of basic and fully
diluted common shares                               18,162,432         7,671,941        18,162,432         7,671,941

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