Mr. Konrad Wasiela reports

ESE COMPLETES SALE OF MINORITY INTEREST IN GAMEADDIK

ESE Entertainment Inc. has completed the sale of its remaining 30-per-cent interest in 9327-7358 Quebec Inc., doing business as GameAddik, to BPV Games LP, an affiliate of BlackPines Capital Partners Ltd.

Pursuant to the terms of a share purchase agreement (SPA) dated July 14, 2024, the company sold its minority interest to the purchaser for consideration of $4,030,925, which was paid in cash on closing. The sale of the minority interest, which follows the company's sale of its 70-per-cent interest in GameAddik on Aug. 14, 2023, concludes the company's disposition of GameAddik for an enterprise value of $13-million.

Konrad Wasiela, ESE's chief executive officer, commented: "It has been a pleasure to collaborate with Darren Huston and BlackPines Capital Partners. This exit has generated substantial value for ESE shareholders by enabling us to inject non-dilutive capital into ESE. As a result, ESE is now strategically positioned for the next phase of growth. I would also like to extend my gratitude to Eric Jodoin and the entire GameAddik team for their dedication and hard work. We are excited about the future and confident that the steps we've taken will drive further success and create even greater opportunities for ESE. Wishing the GameAddik team continued success in all their future endeavours."

The transaction constituted a reviewable disposition in accordance with TSX Venture Exchange Policy 5.3, Acquisitions and Dispositions of Non-Cash Assets, which required ESE to obtain disinterested shareholder approval for the transaction. The company satisfied this requirement by obtaining written consent of disinterested shareholders holding more than 50 per cent of the issued and outstanding shares of the company, excluding shares held by the purchaser, its associates, affiliates and any non-arm's-length parties to the purchaser.

The transaction remains subject to final acceptance by the exchange.

About ESE Entertainment Inc.

ESE is a global technology company focused on gaming and e-sports. 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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