Mr. Shane Copeland reports

ZAIO CORPORATION ANNOUNCES Q4 2015 FINANCIAL RESULTS

Zaio Corp. has released its fourth quarter financial results for the three- and 12-month periods ended Dec. 31, 2015.

"We are pleased with the progress in revenue growth that has been made in the latter half of the 2015 fiscal year as we continue to aggressively pursue building our client base and marketing the Valuation Vision platform across the United States," said Shane Copeland, chief executive officer of Zaio. "Towards the end of last year, we received orders from several large organizations, both government institutions and private companies, to use our BPOMerge platform and we view this as reaffirmation that our product remains highly competitive in the appraisal industry. We have only begun to take advantage of the massive opportunity that exists in this market and expect to see orders more frequently and of higher volume as organizations continue to recognize the unique benefits from the BPOMerge platform."

Financial highlights:

• Total revenue was $1,488,566 for the three months ended Dec. 31, 2015, compared with nil for the same period in 2014. The revenue in Q4 2015 increased by 32 per cent compared with third quarter 2015. Total revenue was $3,156,896 for the 12 months ended Dec. 31, 2015, compared with nil for the same period in 2014.
• Net loss was $1,815,065 (one cent per share) for the three months ended Dec. 31, 2015, compared with a loss of $1,098,901 (one cent per share) for the same period in 2014. Net loss was $12,996,685 (seven cents per share) for the 12 months ended Dec. 31, 2015, compared with loss of $5,429,248 (seven cents per share) for the same period in 2014.

Operational highlights

During the quarter:

• Expenses were significantly reduced, effective at the end of November, 2015, which will be fully reflected in first quarter 2016.
• A top-10 U.S. national lender selected Valuation Vision's MarketValue Pro to replace its current BPO.

Subsequent to the quarter:

• Zaio announced a contract with a U.S. government institution to perform valuation services on non-performing loans.
• The company completed a debenture financing for a gross amount of $1,585,000 at a price of $1,000 per $1,000 principal amount of debenture. The debentures bear a 15-per-cent interest rate per annum payable in quarterly instalments in cash or common shares. The debentures expire on Jan. 25, 2019.
• As part of the debenture financing, the company issued 4,905,000 common share purchase warrants, representing a total of three warrants issued to each subscriber for each $1.00 of principal amount of debentures. Each warrant entitles the holder to purchase one common share at a price of 11 cents, exercisable for a period of 36 months after the date of issuance

We seek Safe Harbor.