STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2018

Jun 3, 2018

ASX and MEDIA RELEASE

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4 June 2018

EMERGE SIGNS MOU WITH SOUTH AFRICAN CONTENT DISTRIBUTOR

• Emerge Gaming has signed a memorandum of understanding (MoU) with South African content distributor AfricaMob

• Under the MoU, Emerge will licence its Arcade X gaming platform to AfricaMob in exchange for subscription fees earned from users driven to the platform by AfricaMob

• AfricaMob’s ability to generate net revenue is underpinned by eMedia Holdings’ media reach and their ability to bill customers across any carrier via airtime billing

• AfricaMob will be responsible for the marketing and promotion of the licenced technology, which includes content generation, digital marketing and prizes

Emerge Gaming Limited (ASX: EM1) (“ Emerge ” or the “ Company ”) is pleased to advise that it has concluded a Memorandum of Understanding (MOU) with AfricaMob (Pty) Ltd (“ AfricaMob ”). The two companies have entered into this MOU with a view to formalising a licencing agreement for the “Arcade X” technology.

Under the proposed licencing agreement, Emerge would be entitled a share of net carrier billing revenue after mobile network and carrier costs (net revenue) generated from the white labelled and rebranded Arcade X platform.

About AfricaMob

AfricaMob creates online and mobile social gaming, video, music and content services. AfricaMob has established products and services in South Africa, integrating three major mobile operators in bringing content services to the end user. Carrier billing (also known as Airtime Billing Integration) has allowed AfricaMob to establish a growing user base and with multiple smart billing technologies has created an industry leading mobile service with strong Life Time Value’s “LTV’s” and Average Revenue Per User’s “ARPU’s”.

AfricaMob and Arcade X

The benefit to Emerge will rely on the conclusion of a formal licencing agreement with AfricaMob and AfricaMob’s ability to utilise the white labelled “Arcade X” technology to generate net revenue. This ability is strongly supported by AfricaMob’s current market success in content revenue generation.

The advantages for Emerge in this agreement are twofold. Firstly AfricaMob, via its eMedia Holdings parent, has access to massive reach which can be leveraged to drive user acquisition. Emerge will benefit from this user acquisition at no cost, while gaining 20% of subscription fees from the users.

Secondly AfricaMob, via its Airtime Billing Integration partnerships, can bill customers across all carriers in South Africa. This capability, in tandem with the existing agreement with MTN, effectively enables Arcade X to be seamlessly bill millions of end users should they choose to use the Arcade X platform.

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In return, AfricaMob gains a gaming platform which offers enhanced eSports capabilities and therefore is expected to result in higher user retention rates.

Detailed terms of the AfricaMob MOU are set out in the annexure to this announcement.

eMedia Holdings Limited

AfricaMob is a subsidiary of a South Africa media conglomerate eMedia Holdings Limited (“eMedia Holdings”) which is listed on the Johannesburg Stock Exchange (JSE). The eMedia Holdings group operates a variety of broadcasting, content and production businesses including South Africa’s first private commercial free-to-air broadcaster, e.TV. The demographic profile of e.TV’s audience mirrors the demographic profile of South Africa.

The eMedia Holdings group also owns youth radio station, YFM, and Open view, South Africa’s leading free to air satellite television platform.

Conclusion of Licencing Agreement

Emerge intends to conclude a formal licencing agreement with AfricaMob within the coming weeks. Commenting on this Emerge Gaming CEO, Greg Stevens said:

“Emerge is pleased to have entered into an MOU with AfricaMob, which has a strong track record of performance and has the support of its shareholders which are experienced in the South African media industry. AfricaMob has access to channels with massive reach and its ability to bill across carriers seamlessly is a very compelling value add in a partner.”

-ENDS-

For further information: Bert Mondello Gregory Stevens Chairman CEO E: bmondello@regencycorporate.com.au E: greg@emergegaming.com.au P: +61 8 6380 2555 P: +27 72 420 4811

ABOUT Emerge Gaming

Emerge Gaming Limited (ASX:EM1) is a leading eSports and Casual gaming tournament company. Emerge Gaming operates the online eSports and casual gaming tournament platform and lifestyle hub “Arcade X”. Via this platform, casual, social and hardcore gamers can play more than 300 gaming titles against each other via their mobile, console or PC.

The platform, which has to date hosted over 10,000 online tournaments, uses its unique IP, advanced analytics tracking and proprietary algorithms to deliver an optimum tournament gaming experience for users while providing advertisers with the perfect vehicle for delivery of their messaging to a fully engaged audience.

More information www.emergegaming.com.au

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Annexure - MOU Details

The MOU outlines the proposed main commercial terms of the intended formal licencing agreement which are:

1. The Licence Agreement will white label the ‘Arcade X’ technology (including all new revisions, enhancements, upgrades and updates to such technology from time to time) to AfricaMob in terms of an exclusive technology licence for at least 3 years, subject to minimum performance hurdles agreed between the parties. The Licence Agreement will be subject to renewal clauses to be agreed between the parties;

2. Emerge will provide this licence exclusively to AfricaMob in respect of South Africa, with the exception of the current MTN South Africa content distribution agreement in place between Emerge and MTN South Africa (which shall not be amended at any time during the duration of the Licence Agreement so as to give MTN greater rights in respect of the ‘Arcade X’ technology than what MTN has as at the date of this MOU). In other words, no other party (including, without limitation, any WASP provider, VAS operator or other airtime billing system operator) will be granted a licence by Emerge to distribute, sell or otherwise deal in the ‘Arcade X’ technology in South Africa other than AfricaMob (and MTN South Africa in terms of its existing content distribution agreement).

3. The licence fees payable to Emerge shall be calculated on percentage of net revenue earned by AfricaMob basis. The revenue will be a percentage of the net carrier billing revenue, after mobile network and carrier costs, generated from the white labelled and rebranded Arcade X platform.

4. Licence fees will be payable in South African Rands into an Australian bank account; 5. Emerge will be responsible for:

5. i. providing and operating the technology platform (this includes hosting, maintenance, upgrades, integration development, etc.);

6. ii. setting up and operating tournaments according to Africa Mob Tournament Content Plans; and

7. iii. the costs associated with technology server hosting (subject to paragraph 6 below), maintenance, upgrades, integration development and tournament operation.

8. Costs associated with the server hosting will need to be considered in instances of high volume driving exorbitant or unreasonable server hosting costs. The final Licence Agreement will need to consider the impact of volume related cost increases and account for cost sharing to be agreed between the parties.

9. AfricaMob will be responsible for:

10. i. Developing all content and marketing collateral;

11. ii. Marketing the platform to users through its partners;

12. iii. Generating Tournament Content Plans;

13. iv. Collection of the subscription revenue from customers (gamers); and

14. v. Costs associated with marketing and content generation and prize money.

15. In setup Emerge shall be responsible for providing AfricaMob with the full list and specification of digital media required to brand the white labelled technology platform.

16. In setup AfricaMob will be responsible for providing the digital media required to brand the white labelled technology platform.

17. Each party shall be responsible for their own setup costs (which include inter alia costs arising from paragraphs 7 and 8 above) and any legal or other fees associated with the preparation and execution of the final Licence Agreement.

18. The parties agree to keep this MOU confidential and accordingly, each party undertakes to the other not to disclose the existence and/or contents of this MOU to any third party or to make any announcement or statement concerning the MOU and/or the proposed Licence Agreement in the media or otherwise, without the prior written consent of the other party.

19. The Licence Agreement will be governed by the law of South Africa.

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