Mr. Jake Kalpakian reports

JACKPOT DIGITAL ANNOUNCES THE CLOSING OF THE FIRST AND SECOND TRANCHES OF THE PRIVATE PLACEMENT

Jackpot Digital Inc., further to its news releases dated March 29, 2023, and May 4, 2023, has closed the first and second tranches of the private placement of convertible debentures for aggregate gross proceeds of $442,401.75. The debentures will bear interest of 10 per cent per annum and are convertible into common shares of the company at the price of 7.5 cents per share until May 17, 2028, and May 25, 2028, respectively. The company also issued an aggregate of 5,898,690 share purchase warrants, exercisable at 10 cents per share for a period of five years.

In addition, the company paid a finder's fee of $375 and issued to an arm's-length party 5,000 non-transferable share purchase warrants, exercisable at 10 cents per share until May 17, 2025.

The securities issued are subject to a statutory hold period, which will expire on Sept. 18, 2023, for the first tranche, and on Sept. 26, 2023, for the second tranche. The final tranche of the private placement is expected to close on or before June 25, 2023.

Proceeds from the debenture financing will be utilized toward regulatory licensing fees and related expenses in multiple jurisdictions to facilitate the widespread placement of Jackpot Blitz ETGs and for general working capital.

About Jackpot Digital Inc.

Jackpot Digital is a leading electronic table games manufacturer for the cruise ship industry and regulated casino industry. The company specializes in multiplayer gaming products, including poker and casino games, which are complemented by a robust suite of back-end tools for operators to efficiently control and optimize their gaming business.

We seek Safe Harbor.