Mr. Michael Moskowitz reports

NORTHSTAR GAMING REPORTS PRELIMINARY RESULTS FOR FOURTH QUARTER AND FULL YEAR 2023

Northstar Gaming Holdings Inc. has provided a business update and released selected preliminary financial results for the three- and 12-month periods ended Dec. 31, 2023.

"We ended the year with our strongest quarter to date, highlighted by record wagers and revenue, as well as accelerating growth in player acquisition and deposits," said Michael Moskowitz, chair and chief executive officer of Northstar. "In the fourth quarter we also solidified our balance sheet and significantly expanded our addressable market."

Preliminary results for the three months ended Dec. 31, 2023:

• Revenue, including managed services fees, net of bonuses, promotional costs and free bets, is expected to be approximately $6.5-million in Q4 2023, an increase of 103 per cent over $3.2-million in Q4 2022.
• Total wagers at Northstarbets.ca are expected to be approximately $213.3-million in Q4 2023, an increase of 90 per cent compared with $112.3-million in Q4 2022.
• Gross gaming revenue at Northstarbets.ca is expected to be approximately $7.6-million in Q4 2023, an increase of 85 per cent over $4.1-million in Q4 2022.
• Gross margin is expected to be approximately $2.5-million in Q4 2023, an increase of 127 per cent over $1.1-million in Q4 2022, and represents approximately 39 per cent of revenue compared with 35 per cent of revenue in Q4 2022.

Preliminary results for the year ended Dec. 31, 2023:

• Revenue, including managed services fees, net of bonuses, promotional costs and free bets, is expected to be approximately $19.5-million in 2023, an increase of 242 per cent over $5.7-million in 2022.
• Total wagers at Northstarbets.ca are expected to be approximately $648.8-million in 2023, an increase of 251 per cent compared with $184.7-million in 2022.
• Gross gaming revenue at Northstarbets.ca is expected to be approximately $22.5-million in 2023, an increase of 208 per cent over $7.3-million in 2022.
• Gross margin is expected to be approximately $7.1-million in 2023, an increase of 492 per cent over $1.2-million in 2022, and represented approximately 36 per cent of revenue compared with 21 per cent of revenue in 2022.

Recent operating highlights:

• During the fourth quarter, Spreads.ca, an i-gaming site owned and operated by the Abenaki Council of Wolinak under the licence issued by the Kahnawake Gaming Commission, was rebranded to Northstarbets.com. The company earns managed services fees from the Abenaki Council of Wolinak for its exclusive management of Northstarbets.com.
• In October, 2023, the company completed a private placement financing of approximately $10.3-million consisting of common shares, warrants and convertible debentures.
• December, 2023, was an especially strong month and is expected to yield record highs in wagers, new customers acquired and new deposits in any single month since launch. Northstar was recently included in a diversified watch list report from Paradigm Capital showcasing several companies that should be on investors radars, a potential precursor to full analyst coverage.
• The continuing optimization of the company's business model led to a significant decrease in cost of acquisition per customer and a more attractive payback ratio on acquired players.
• Readership of the company's proprietary Insights content increased 40 per cent year-over-year in the fourth quarter. Players who read Insights content generate significantly higher deposits and wagering, on average, than other players.

"We are very optimistic about our growth trajectory and ability to create shareholder value in 2024," added Mr. Moskowitz. "We plan to roll out exciting innovations to our product suite that will further differentiate Northstar Bets as a premium offering uniquely suited for the Canadian market. Continued momentum across our key metrics, together with an ongoing focus on cost management and optimizing our marketing, should deliver increasing operating leverage as the year progresses."

The company expects to file its complete, audited financial results for the year ended Dec. 31, 2023, by the end of April, 2024. Given the length of time before full results will be available, the company has elected to announce these preliminary results in the interest of transparency for its investors.

About Northstar Gaming Holdings Inc.

Northstar proudly owns and operates Northstar Bets, a made-in-Ontario casino and sportsbook gaming platform that provides players with a uniquely local, premier user experience. The Northstar Bets sportsbook provides real-time news, stats, analysis and scores directly in the betting environment along with the most popular online casino games. Northstar's subsidiary, Slapshot Media Inc., provides managed services to Northstarbets.com an i-gaming site owned and operated by the Abenaki Council of Wolinak.

A Canadian company, Northstar is uniquely positioned to become a convergence leader in the intersection of sports media and sports wagering thanks to its partnerships and agreements with leading media companies. Northstar is committed to operating at the highest level of responsible gaming standards.

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