Mr. Konrad Wasiela reports

ESE ENTERTAINMENT CEO PROVIDES CORPORATE UPDATE

ESE Entertainment Inc. has provided a corporate update on its growth strategy ahead.

"In August, 2023, ESE completed the sale of 70 per cent of one its subsidiaries for $9.1-million, which was the largest non-dilutive cash injection since the company's inception. The cash has been utilized to eliminate the company's secured debt, improve its balance sheet and position itself for future growth. The sustained momentum, evidenced by our consistent execution quarter-over-quarter, fuels our enthusiasm as we look forward to a promising year ahead," said Konrad Wasiela, chief executive officer of ESE Entertainment.

"The gaming sector stands as one of the most dynamic and thriving industries globally, with gaming being one of the world's fastest-growing forms of entertainment. At ESE, we're steadfast in our belief that gaming will continue to grow throughout all areas of sports, entertainment and more. We want to be on the forefront of creating and deploying the services and technology that allow game developers to reach more users and create better games," continued Mr. Wasiela.

In the coming months, ESE will focus on the following goals:

• Commitment to profitability: A thorough review of resources and operational frameworks led to a reduction in headcount, contributing to decreased operational burn. This move underscores ESE's commitment to operational efficiency through leveraging technology and AI (artificial intelligence) to scale. All manoeuvres are driven by a central goal -- bolstering profitability.
• Expansion of gamification into sports and entertainment: ESE is setting the stage to extend its innovative offerings into the wider sports and entertainment industries, marking a significant stride in diversifying its operational horizons and tapping into new market segments. This is anticipated to increase the potential scale of ESE's client base and technology services.
• Strategic scaling in North America: ESE is channelling its resources and expertise to further its footprint in North America. The refined focus on scaling operations in this region is spurred by a compelling market opportunity and the aim to expand ESE's presence in the gaming landscape.
• Exploring profitable acquisition opportunities: In addition to the company's organic growth opportunities, the company is considering selective acquisitions that align with its objective of becoming a dominant global player in gaming and achieving profitability.
• Strategic ownership and partnership: ESE still owns 30 per cent of GameAddik, which has been retained by the company as an asset, and also includes a strategic partnership with BlackPines Capital.

Mr. Wasiela, CEO of ESE, remarked: "The immediate next phase is key to executing ESE's growth strategy. We have a strong balance sheet and are laser focus on increasing shareholder value. As a former professional athlete, I have a deep understanding of the sports and entertainment sector, and our company is positioned to extend our product offerings to customers within these domains. This move is not just about diversification, but a well-thought-out strategy to widen our margins and secure a winning position in the market of gamification. We are seeing a large trend towards gamification in all areas of sports and entertainment, and we want to capitalize on it."

Corporate goals for Q4 2023:

• The company will develop and deploy its augmented reality and virtual reality product offering for clients in its media division;
• The company will continue to evaluate the gaming landscape and look to secure more global-scale contracts with large video game publishers;
• The company will look to add more senior management and advisers, with a focus on operational expertise;
• The company will look to improve financial performance and increase margins;
• The company plans to continue to expand its presence in North America.

As ESE enters a new phase, the company reaffirms its vision of becoming one of the most active and prolific companies in the gaming and entertainment industry -- by using its technology and expertise to play a key role in the long-term development of the sector.

Mr. Wasiela, CEO, concludes: "I want to personally thank all of ESE's shareholders that believe in our company vision. We are focused and determined to execute on goals that should drive shareholder value. Despite market conditions, our team is extremely motivated and will continue to stay the course and execute on the immediate goal of scaling the company. We have a dynamic plan that has been built out, and we will be executing on it over the next several quarters."

About ESE Entertainment Inc.

ESE is a global technology company focused on gaming. The company provides a range of services to leading video game developers, publishers and brands by providing technology, infrastructure and fan engagement services internationally. ESE also operates its own e-commerce channels, e-sports teams and gaming leagues.

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