Mr. Brian Wilneff reports

ALPHAGEN HITS NEW REVENUE HIGH AND ACHIEVES EXCEPTIONAL 4TH QUARTER RESULTS: POSITIVE EARNINGS AND 780% REVENUE SURGE

Alphagen Intelligence Corp. has released financial results for its fourth quarter and full year ended June 30, 2023.

Alpha has achieved record financial performance for the second consecutive quarter, surpassing $949,000 in revenues for the three months ended June 30, 2023, reaching approximately $2 million in revenue for the year ended June 30, 2023.

A significant contributor to the Company's financial success has been a long-term contract to create and launch a large retail metaverse for a multi-billion-dollar international brand. In addition, the Company has expanded its offerings into additional verticals, including leveraging generative AI to create digital production efficiencies as well as continued focus on our gaming-as-a-service ("GaaS") "Mana" platform. The Company's GaaS platform, Mana, empowers business to access a powerful competitive gaming platform, enabling customers to enhance user engagement and monetization.

Brian Wilneff, CEO of Alphagen, commented "I share immense pride with the management team in the achievements of this quarter and this fiscal year. It has been an intensely focused year, during which the company met and exceeded all of its revenue goals and objectives, with the bulk of new revenue coming from 3D content production services and venturing into new business verticals, such as the launch of our AI Center of Excellence.

"Our strategic expansion into the use of AI, focused initially on cost savings and efficiency in creative and 3D asset production, has ushered in a wave of exciting possibilities for future growth and innovation. When added to prior innovations such as our Mana GaaS (gaming as service platform), these deliberate moves underscore our commitment to diversification and our keen awareness of the benefit of staying at the forefront of evolving market trends."

Continued Wilneff, "I am grateful to our exceptional team whose unwavering dedication has made these accomplishments possible. Together, we seek to set new standards of success as we shape what is expected of us. This exceptional quarter stands as a pivotal milestone in our ongoing journey, as we persistently strive for a prosperous future for our Company, our customers and stakeholders."

All financial information contained in this news release is reported in CAD. We ask readers to please reference the June 30, 2023 audited financial statements and MD&A filed on SEDAR PLUS for further information regarding the Company's financial results.

Key highlights in the above:

• 780% increase in revenues with total revenues of $949,5456;
• 1010% increase in gross profits;
• 78% reduction in operating costs;
• Positive EBITDA* of $318k for the fourth quarter after removing non-cash one-time transactions such as the share-based payment expense of $1,100,581 (2022 - $2,178,887);
• Increase in EBITDA of over $3.8M.

Key highlights in the above:

• 880% increase in revenues with total revenues of over $2M;
• 1143% increase in gross profits;
• 63% reduction in operating costs;
• Decrease in net loss of over $7.8M;
• Increase in EBITDA* of 97%.

Operational highlights

• Establishment of a Center of Excellence for Artificial Intelligence ("AI") in 3D and content production, with a focus on developing cutting-edge AI technologies to improve the efficiency and quality of 3D modeling, optimization and automated content production;
• Secured a contract with a multi-billion dollar, international, category-leading brand based on our expertise in content production within the metaverse to showcase its products and services in an immersive and interactive virtual environment;
• Achieved increases in revenues and reduction in costs and first ever positive net income;
• Successfully resolved certain outstanding debts, leading to a reduction of $307,023 in current accounts payable;
• Completing the final acquisition payment owing in respect to the acquisition of Shape Immersive Entertainment of which $400k was paid utilizing positive EBITDA generated by the Company; and
• Introduction of its GaaS through our customizable Mana platform, successfully landing our first licensing agreement with ClashTV;

About Alphagen Intelligence Corp.

Alphagen Intelligence Corp. (CSE: AIC) (OTC: APETF) (FRA: W4V) is a publicly traded company, holding a portfolio of assets in metaverse, gaming and generative AI. Operational units include: Shape Immersive, a full service metaverse studio building the future of web3 gaming and virtual retail experiences for Fortune 500 companies and beyond through 3D, NFT, XR and game production; MANA, a custom-built Gaming SaaS solution and innovation lab that empowers partner companies to level up their community engagement by launching their own competitive gaming platforms; GamerzArena, a gaming platform that provides an esports ecosystem for all gamers. The platform provides video game contests for top titles where gamers can compete for cash and prizes. Alpha clients and partners include RTFKT, Olympics, Star Altas, Red Bull, Intel, TED and more. Learn more at: alphagen.co.

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