Mr. Darcy Will reports

GAMEHOST ANNOUNCES SECOND QUARTER FINANCIAL RESULTS AND DIVIDEND FOR AUGUST

Gamehost Inc. has presented results for the six and three months ended June 30, 2023.

Gaming facility operator licences for all of the company's casinos were renewed for a period of six years following an Alberta Gaming, Liquor and Cannabis Commission (AGLC) review process. The licences are valid to June 30, 2029. The company considers the licences to have indefinite life.

Results in the quarter are compared with both the comparable prior-year quarter and (pre-COVID-19 quarter in 2019). Operating revenue was $20,833,100 versus $17,927,900 ($16,821,600: 2019), earnings before interest, taxes, depreciation and amortization were $8,773,600 versus $6,645,000 ($6,497,000: 2019), and earnings per share for the quarter were 25 cents versus 15 cents (19 cents: 2019).

The quarter reflects a two-percentage-point increase in the operator share of electronic gaming device hold from 15 per cent to 17 per cent. AGLC approved the temporary, two-year increase, effective April 1, 2023. The increase is intended to incentivize operators to make investments in their facilities or promotions that will increase gaming revenues, and will be evaluated at regular intervals by AGLC during the two-year period. Management is hopeful that results following the two-year period will support the change being made permanent.

Wildfires during the quarter and continuing are suppressing rooming revenue at its Service Plus hotel in Grande Prairie as oil and gas crews are prevented from safely reaching field areas. Otherwise, management is very pleased with the continued strong performance of all assets during the quarter.

A regular monthly dividend through the quarter was maintained at an annualized rate of 36 cents per common share equating to a normalized (share repurchases and capital expenditures removed) payout ratio of 33.8 per cent. During the quarter, the company repurchased 200,700 common shares at prices averaging $8.99 per common share excluding broker commissions for an aggregate $1,803,400. Remaining surplus cash was used to reduce revolving debt by $2,092,700. Management intends to continue this three-pronged allocation for surplus cash.

Discretionary consumer spending at company casinos is proving quite resilient to continuing inflationary pressures. Alberta's country-leading net migration statistics for 2023 are undoubtedly offsetting any negative pressures from inflation. This is likely to continue as housing affordability and employment opportunities in Alberta attract the attention of international and provincial migrants.

With Calgary's world-famous Stampede now in the rear-view mirror after setting near-record attendance, it is clear that locals and tourists alike are wanting to live it up. Tourism and entertainment are booming after years of COVID-19 suppression. Gamehost casinos and hotels are delivering what the people want. Enjoy the rest of the summer!

Gamehost has declared a cash dividend for the month of August, 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 Sept. 15, 2023, to shareholders of record on Aug. 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.

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.

Gamehost common shares trade on the Toronto Stock Exchange under the symbol GH.

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