Mr. Steve Chung reports

FRANKLY INC. GRANTS INCENTIVE STOCK OPTIONS

Frankly Inc. has granted a total of 1,222,510 stock options to directors, officers, employees, advisers and consultants of the company. Each option allows the holder to acquire a common share of the company for a period of 10 years, subject to vesting requirements. The exercise price for 235,490 of the options is $3.05, while the exercise price for the remainder of the options is $2.99.

Out of the total number of options, 756,446 were granted to the executive team, one member of which also serves as a director of the company. The initial vesting date of 1,217,310 options will be the anniversary of the grant date, at which point 25 per cent of the options of each holder will vest, and thereafter, one-48th of the remaining options will vest monthly during the three years beginning on the first anniversary of the grant date until the applicable options are fully vested. The remaining 5,200 options are fully vested.

Under the company's equity incentive plan, the maximum total number of shares that may be issued under the plan shall not exceed 10 per cent of the common shares issued and outstanding from time to time on a non-diluted basis. Including the grant of the options described herein, the company will have 1,678,825 options issued and outstanding, representing approximately 7.61 per cent of the company's common shares outstanding.