Mr. Craig Loverock reports

CONTAGIOUS GAMING CLARIFIES SHARES FOR DEBT TRANSACTION

Further to Contagious Gaming Inc.'s news release dated Dec. 12, 2023, it wishes to clarify the details of its intended shares for debt transaction. The company intends to settle an aggregate $470,300 in debt in exchange for the issuance of an aggregate of 47.03 million common shares in the capital of the company at a price of one cent per share. The proposed debt settlement is subject to the approval of the TSX Venture Exchange.

The previous news release omitted the details of the non-arm's-length component of the shares for debt transaction.

No new control person of the company will be created pursuant to the shares for debt transaction. However, certain of the debt was accrued pursuant to consultant and management services entered into between the company and two entities controlled by insiders of the company (the insiders). As a result, this portion of the shares for debt transaction will be a non-arm's-length transaction. A total of $272,000 is to be settled to the insiders as part of the non-arm's-length transaction.

The issuance of the shares to the insiders constitutes a related party transaction as such term is defined by Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. Accordingly, the issuance of the shares to the insiders pursuant to the shares for debt transaction will be undertaken pursuant to certain exceptions from the valuation and minority approval requirements of MI 61-101.

All shares issued in connection with the shares for debt transaction are subject to a statutory hold period of four months plus a day from the date of issuance of the shares in accordance with applicable securities legislation.

Closing of the shares for debt transaction is subject to several conditions, including receipt of all necessary corporate and regulatory approvals.

About Contagious Gaming Inc.

Contagious Gaming (TSX-V: CNS) is in the business of developing software solutions for regulated gaming and lottery markets. The company is currently focused on capitalizing on its proprietary digital instant lottery content.

We seek Safe Harbor.