Mr. Craig Thomas reports

GAMEHOST ANNOUNCES FIRST QUARTER FINANCIAL RESULTS AND DIVIDEND INCREASE EFFECTIVE NOVEMBER

Gamehost Inc. has released its results for the nine and three months ended Sept. 30, 2023.

Operating revenue for the quarter was up 18.3 per cent to $21,392,600 ($18,809,400 -- 2022) and EBITDA (earnings before interest, taxes, depreciation and amortization) was up 53.0 per cent to $9,459,700 ($6,182,300 -- 2022). Earnings per share for the quarter nearly doubled to 27 cents (14 cents -- 2022).

Comparative results for the quarter reflect a two-percentage-point increase in the operators 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.

All company assets reported year-over-year gains in revenue, cash flow and margins. Wildfires that in the prior quarter suppressed rooming revenue at the company's northern hotels in Grande Prairie by keeping oil and gas crews out the field were a boost to rooming revenues at all company hotels during the quarter from wildfire evacuees.

The company applied $4,129,200 to reduce debt during the quarter and has reached a debt to EBITDA ratio of 1.5 to one on a trailing-12-month basis.

Consumers in the province have proven to be very resilient to the headwinds of inflation and any negative sentiment toward a slowing economy. Provincial cash play numbers for slot machines entered record territory toward the end of the prior quarter and have since marched steadily higher. Very favourable in-migration to the province could be masking the true impact of inflation and higher interest rates, and the company expects at some point to feel their impact on revenue growth. In the meantime, Gamehost is enjoying the benefits Alberta is famous for and sharing positive news again after some difficult years.

Gamehost has declared a cash dividend for the month of November, 2023, of four cents per common share, which equates to 48 cents per common share on an annualized basis. The dividend represents a 33.3-per-cent increase to the regular monthly dividend and will be paid on Dec. 15, 2023, to shareholders of record on Nov. 30, 2023. This dividend is considered an eligible dividend and is therefore eligible for the enhanced gross-up and dividend tax credit available to Canadian shareholders.

The company has included non-international financial reporting standards (non-IFRS) measures in this news release. EBITDA, as defined by the company, means earnings before interest and financing costs, income taxes, depreciation and amortization, and foreign exchange gains or losses. The company believes EBITDA is a useful measure because it provides information to management and investors about the company's performance in generating operating cash flow to finance working capital needs, service debt obligations, finance future capital expenditures and support dividend policy. Readers are cautioned that non-IFRS measures do not have any standardized meaning prescribed by IFRS and should not be taken as alternatives to net earnings measured in accordance with IFRS. The company's method of calculating non-IFRS measures may not be comparable with similarly titled measures used by other reporting entities.

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, as well as a strip mall, all located in Grande Prairie, and the Deerfoot Inn & Casino in southeast Calgary.

These consolidated interim financial results include the accounts of Gamehost and its subsidiaries; however, they do not include all disclosures normally provided in consolidated interim financial statements and should be read in conjunction with the 2023 Q3 consolidated interim financial statements. Further, while the financial figures included in this news release have been computed in accordance with IFRS applicable to annual periods, this news release does not contain sufficient information to constitute an annual financial report and should be read in conjunction with the 2022 annual financial report for the 12 and three months ended Dec. 31, 2022. This interim report will be filed in its entirety, along with historical financial reports, on the company's website and on SEDAR+, along with the company's other continuous disclosure documents, when they are available.

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

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