Mr. Craig Thomas reports

GAMEHOST ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND DIVIDEND FOR MAY

Management and directors of Gamehost Inc. have released results for the three months ended March 31, 2023 (the quarter).

The quarter is the fourth consecutive quarter of operations without COVID-19 restrictions of any kind. Results in the quarter are compared with both the comparable prior-year quarter and (pre-COVID-19 quarter in 2019). Operating revenue was $19,838,600 versus $14,942,400 ($17,022,500 -- 2019), EBITDA to owners was $8,022,600 versus $4,528,800 ($6,258,600 -- 2019), and earnings per share for the quarter was 21 cents versus nine cents (14 cents -- 2019). The company performed well above expectation for the quarter on both top and bottom lines.

Capital investments made during and following the pandemic are delivering solid returns. The extensive expansions and renovations to all of the company's properties should result in minimal capital maintenance requirements for the company in the medium term.

After financing the company's regular monthly dividend, the company continued prioritizing the use of capital resources for repurchasing shares while market prices remain below management's assessment of their underlying value. Under the current normal course issuer bid (NCIB), the company has repurchased 666,356 common shares, 60 per cent of the allowable maximum, at prices averaging $8.12 per common share excluding broker commissions for an aggregate $5,413,800. The NCIB expires in July, 2023. Surplus cash, beyond dividend, NCIB and working capital requirements, was applied to revolving variable rate debt. Management believes these priorities for capital to be low-risk, high-return uses for excess cash.

The company previously announced that the province's gaming regulator, AGLC, will increase the operator's share of slot commissions from 15 per cent to 17 per cent effective April 1, 2023. AGLC has stated the commission increase will be temporary for a period of two years. Slot operators are expected to reinvest in their facilities and/or in promotional activities that measurably support slot play. AGLC and provincial operators are collectively working out qualifying criterial and reporting requirements for the added commission. The company is hopeful the increase will become permanent following evaluation of the temporary increase period.

During the quarter, Deerfoot Inn & Casino hosted a third successful World Series of Poker Circuit (WSOP-C) event. Deerfoot first hosted a WSOP-C event in January, 2022, and built the biggest main event poker prize pool in Alberta history. Prize pools for these events have grown with each successive event held. Deerfoot will host a fourth WSOP-C event in May, 2023. The company hopes to build on the company's Deerfoot's early success and ideal suitability for such events in Calgary.

Inflation and the lagging impact of higher interest rates remain front burner risks to the company's business. Management has taken steps to mitigate these risks. Capital allocation priorities allow for accelerated reduction in the company's variable rate debt. Greater monitoring and forward contracting of major operational costs are already producing benefits.

Despite the overhang of inflation and interest rates, the company likes the look and feel of Alberta right now. Roadways are busy and the province is attracting a growing population. The Alberta Activity Index (AAX) data, developed by the Alberta Treasury Board and Finance, tracks nine key indicators of economic activity (employment, average weekly earnings, retail trade, wholesale trade, manufacturing, new truck sales, housing starts, rigs drilling and oil production). The latest AAX data for January, 2023, indicates Alberta economic activity at a historical high. So, this feeling the company has, it is not imagined. It is real!

Gamehost has declared a cash dividend for the month of May, 2023, of three cents per common share, which equates to 36 cents per common share on an annualized basis. The dividend will be paid on June 15, 2023, to shareholders of record on May 31, 2023. This dividend is considered an eligible dividend and therefore, eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.

About Gamehost Inc.

Gamehost is a corporation established under the laws of the Province of Alberta. The company's operations are all located in the province of Alberta, Canada. Operations of the company include the Rivers Casino & Entertainment Centre in Fort McMurray, the Great Northern Casino, Service Plus Inns & Suites and Encore Suites hotels, as well as a strip mall, all located in Grande Prairie and the Deerfoot Inn & Casino in southeast Calgary.

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