STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2020

Sep 9, 2020

ASX RELEASE

10 September 2020

Emerge Expands International Footprint with Revenue Generative Partnership

Highlights:

• Emerge enters into a first phase agreement with European based Tecnología de Impacto Multiple S.L. to market its mobile tournament platform technology into a growing network of 10 million affiliate members to use and sell the platform
• Agreement guarantees a minimum of 100,000 paying subscribers within 6 months
• 100,000 subscribers equates to monthly revenue of USD$850k (~AUD$1.2M) at a monthly subscription of USD$8.50 (~AUD$12.00) each
• Monthly revenue from 100,000 paying subscribers translates to a potential annual recurring revenue of USD$10.2million (~AUD$14.4million assuming 100% retention of subscribers)
• Emerge to earn 64.5% of the Net Revenue from the platform
• New platform will target, high lifetime value users with large prizes and premium content in new countries, complementing the South Africa-focused MTN Arena offering
• Second phase of partnership with TIM to focus on Cloud Game Streaming

Emerge Gaming Limited (ASX: EM1) ("Emerge" or the "Company"), the owner and operator of eSports and gaming technology, is pleased to advise that it has concluded a first phase licencing agreement with Tecnología de Impacto Multiple S.L. ("TIM") to market Emerge's proprietary tournament platform technology into an affiliate sales network under a white-labelled brand.

Emerge, in partnership with TIM and its related entity Impact Crowd Technology S.L., have the common objective of building the world's biggest online casual gaming community by leveraging a sophisticated affiliate network of more than 10 million members. The partnership will take a phased approach, with the first phase tournament platform technology being the precursor to the second phase launch of Emerge's Cloud Game Streaming solution. The Agreement broadens Emerge's market reach across more than 150 emerging and developed markets.

The product offering with TIM is expected to launch across 15 countries in November 2020. Emerge will keep the market informed of its progress.

Gregory Stevens, CEO of Emerge Gaming, commented:

"The ability of Emerge to market its eSports and Gaming products through an established and successful affiliate sales network delivers rapid growth and scale whilst targeting a key strategic growth market of high lifetime value users. We are excited to be partnering with TIM, leveraging their 10 million affiliate member network as both users and advocates to market our tournament platform technology and support our objective of building the world's biggest gaming community.

Emerge has successfully demonstrated its ability to monetise its proprietary eSports tournament technology and expanding through a global technology-enabled sales network has the potential to generate significant revenues and shareholder value. We have been encouraged by TIM's belief in our product underpinned by its guarantee to deliver 100,000 subscribers in six months."

Terms of the Agreement with TIM

The significant terms of the agreement with TIM are:

• Emerge to operate the white labelled mobile tournament platform
• Subscribers will be charged USD$8.50 (~AUD$12.00) per month
• TIM is responsible for marketing the platform at its own cost
• Emerge to provide prizes to a value of USD$250,000 over 12 months with a grand prize of USD$250,000 at the end of the 12 months
• TIM guarantees a minimum of 100,000 subscribers will subscribe to the platform within 6 months from launch date
• If the target is not reached, TIM will pay Emerge 50% of the cost of prizes put up by Emerge. If the Agreement is terminated prior to the end of the 12 months and the target is not reached, TIM will pay Emerge 50% of the cost of prizes put up by Emerge until the end of the contract
• Net Revenue under the agreement is determined as gross subscriptions received less direct taxes and other directly attributable platform costs
• Emerge will earn 64.5% of the Net Revenue from the platform

Monetisation and Value Proposition

Under this agreement, Emerge will bill a monthly subscription to subscribers of the tournament platform. The value proposition is that subscribers will pay USD$8.50 per month (~AUD$12.00) to enter into competitions involving their favourite mobile social games, earn rewards and win prizes and participate in a minimum aggregate prize pool of USD$500,000 (~AUD$700,000).

The 100,000-user guarantee of TIM equates to a monthly revenue of USD$850,000 (~AUD$1.2M). Assuming 100% retention of paying subscribers, the monthly revenue from 100,000 paying subscribers translates to potential annual recurring revenue of USD$10.2million (~AUD$14.4million).

The Future of Mobile eSports and Gaming – Cloud Game Streaming

In the eSports and gaming markets, services that stream high quality immersive games have been slow to commercialise being previously hampered by restrictions of bandwidth resulting in latency challenges and expensive hardware solutions. Today, most games are downloaded to a device—a smartphone, gaming console, or PC, by gamers.

Cloud gaming moves content execution off the consumer's device and into the cloud. Similar to how video streaming services deliver content (Netflix, Showmax, YouTube, Twitch, etc.) the game is streamed to the player's device via content delivery networks with regional points of presence near densely populated cities. In addition to streaming the game's video, the gamers commands to control the gameplay are rapidly sent back to the cloud. Essentially the "Console" is in the cloud.

Emerge's cloud streaming technology solution offers an all-in-one gaming and entertainment platform for mobile smart devices and smart TV's including cloud gaming, live streaming, video, comics, esports and ecommerce. Offering download free cloud-based multiplayer AAA games with graphic interface overlays ("on screen soft buttons as a controller") seamlessly to mobile devices is a key differentiator of the technology.

As a second phase, Emerge and TIM are planning to collaborate to launch the cloud game streaming technology.

Product Launch

The product is set to launch in 15 countries in November 2020 under a new brand. Emerge will keep the market informed of its respective country roll out strategy, the product and the launch. TIM will be driving the pre-launch campaign and developing marketing material in anticipation of the product launch.

With the launch of this product, Emerge will have two live platforms in operation. This product will be targeted at a higher value demographic than Emerge's other live product, MTN Arena, which is targeted at achieving lower value fees from a significant volume of users.

For further information:

Australia	South Africa
Bert Mondello	Gregory Stevens
Chairman	CEO
E: bm@emergegaming.com.au	E: greg@emergegaming.com.au
P: +61 8 6380 2555	P: +27 72 420 4811

ASX release authorised by the Board of Directors of Emerge Gaming Limited.

About Emerge Gaming

Emerge Gaming Limited (ASX:EM1) is a leading eSports and gaming technology company. Emerge Gaming owns and operates an online eSports and casual gaming tournament platform technology and lifestyle hub. Via this platform, casual, social and hardcore gamers can play hundreds of gaming titles against each other via their mobile, console or PC, earning rewards and winning prizes.

The platform 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 and view the Arcade X platform at www.ArcadeX.co

About TIM

Tecnología de Impacto Múltiple SL (TIM) is part of the Impact Crowd Technology Group (ICT). It is a Spanish company group with its headquarters in Madrid. The ICT Group's vision is to create the world's largest sales force, disrupting the traditional value chain and distribution of apps, software, products and services. By using its network, the ICT Group sells products directly to the end customer. Similar to Uber and Airbnb, who own neither cars nor beds, the ICT Group does not sell any products of its own. The ICT Group markets other companies' products and services.