Mr. Darcy Krogh reports

PLAYGON PROVIDES UPDATE ON NEXT-GENERATION AI DEALER DEVELOPMENT AND COMMERCIALIZATION STRATEGY

Playgon Games Inc. has provided shareholders with an update on the development and commercialization strategy for its next-generation artificial intelligence dealer technology.

The company continues to advance the development and integration of its next-generation AI dealer technology into Playgon's existing award-winning live casino platform. The technology uses hyper-real digital humans for dealer presentation, animation and narration while Playgon's proven game engine and multiplayer technology continue to manage game logic, random number generation where applicable, game outcomes and payouts. This approach builds on the company's existing operator integrations, distribution infrastructure and regulatory experience supporting the company's return to market. Playgon is targeting an initial commercial release this year, beginning with baccarat, followed by roulette and blackjack, with the initial three-game suite targeted for completion by the end of the first quarter of 2027.

Playgon is bringing lifelike digital dealer presentations to its established casino table games while retaining the integrity and functionality of its existing gaming platform. By combining proven gaming infrastructure with hyper-real digital human technology, Playgon is offering operators a compelling alternative to traditional studio-based live dealer products, with greater flexibility and customization in how tables and dealer environments are presented.

Traditional live dealer products require significant investment in physical studios, dealer staffing, training and continuing operating infrastructure. Playgon's AI dealer technology is being developed to present games through digitally rendered dealers, eliminating the need for a human dealer at each table. The technology is being designed to support real-time player interaction, multiple languages, customizable digital dealers, operator-branded tables and virtual casino environments, 24-seven availability and scalable deployment. This approach is expected to significantly reduce the capital and operating costs associated with traditional live dealer studios while providing operators with greater flexibility and scalability.

Commercialization strategy

As development progresses toward the targeted commercial release, Playgon is increasing its focus on: regulatory certification, operator demonstrations, distribution relationships and identifying initial commercial deployment partners. The company has demonstrated its hyper-real digital dealers to industry participants and prospective operator partners at recent conferences. Management has received encouraging feedback on the realism of its hyper-real digital dealers and the potential to create differentiated, operator-branded casino environments.

Playgon is initially focusing its commercialization efforts on established on-line casino operators and gaming groups, positioning its AI dealer hosted games as a complement to its existing live casino offerings or as a new category of gaming content. In addition to its traditional software-as-a-service licensing model, the company expects customized, localized and branded tables to provide operators with more flexible, lower-cost per-table deployment options and to create additional revenue opportunities for Playgon. The company plans to leverage its established distribution relationships and existing aggregator integrations to support commercialization and accelerate access to global gaming markets.

Playgon's AI dealer technology is central to the company's strategy to transition from capital-intensive live studio operations toward a more scalable, software-driven business model. By integrating hyper-real digital dealers into its established gaming platform, Playgon aims to provide operators with greater flexibility to create customized casino experiences without the infrastructure and staffing costs associated with traditional live dealer studios.

"We believe our AI dealer technology has the potential to fundamentally change the economics of live dealer casino gaming," said Darcy Krogh, president and chief executive officer of Playgon. "Our experience developing and operating traditional live dealer technology has given us first-hand knowledge of the significant capital requirements, staffing costs and scalability challenges of that model. We have learned valuable lessons from those challenges. Our opportunity now is to use the gaming engine, multiplayer capabilities, integrations and regulatory experience we have already developed, and combine them with hyper-real digital dealer technology to deliver a highly realistic and more scalable dealer experience. We believe the ability to offer operators their own branded dealers, tables and virtual casino environments, without the costs of staffing a conventional live studio for every table, represents an important evolution of our business and an exciting opportunity for the industry."

About Playgon Games Inc.

Playgon is a software-as-a-service technology company focused on developing and delivering gaming technology to on-line operators globally. The company's established live casino gaming platform includes a proprietary game engine, multiplayer capabilities and operator integration infrastructure. Playgon is integrating hyper-real digital human technology into that platform to support scalable, customizable, AI dealer products for on-line gaming operators.

Playgon's products are delivered through a business-to-business licensing model and are designed to enhance player engagement, improve operator economics and expand the possibilities for interactive on-line gaming entertainment. As a true business-to-business digital content provider, the company's products are ideal turnkey solutions for on-line casinos, sports book operators, land-based operators, media groups and big database companies.

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