STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2021

Jul 13, 2021

ASX:EM1 | ABN 31 004 766 376

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ASX RELEASE

14 July 2021

Emerge signs first client Sasol with Launch of Corporate Advertising and a Game Development Studio

Highlights:

• Gaming & Esports advertising solutions now offered to corporate brands

• Launch of mobile games development studio

• First corporate advertising agreement with Sasol which has a market capitalisation of ~US$10 billion

• Emerge to generate advertising revenue of c. A$280k from Sasol

Emerge Gaming Limited (ASX: EM1) (“Emerge” or the “Company” ), the operator of esports and gaming technology, is pleased to announce that it has launched gaming & esports corporate advertising.

Gaming & Esports corporate advertising

Emerge, in seeking to grow and diversify its revenue streams has launched corporate advertising to offer marketing solutions to corporate brands seeking exposure in the gaming and esports industries. The offering provides access to competitive social gaming platforms, a scaling subscriber community and Emerge’s recently launched weekly television show, giving corporate brands the opportunity to reach gamers via multiple channels.

Emerge’s corporate advertising initiative leverages the reach of Emerge’s social gaming platforms to provide tailored marketing solutions to clients. These include: discounted bulk subscriptions by activation, sponsorship credits on Emerge’s Social Gaming and Coconuts show currently broadcast on GINX Esports TV, mobile game development of brandable mobile games, operation of tournaments, prize distribution and measurable activations for partners.

Gregory Stevens, CEO of Emerge commented: “Our initial approaches to potential corporate partners have been met with a very positive response and significant interest. The first partnership with Sasol is an early indication of the commercial application and potential scope of our corporate advertising offering.

“I am delighted with the launch of our corporate advertising offering. This is an important step towards having further diversified revenue streams. The interest shown by corporates to date is encouraging and EM1 is working to convert this interest into revenue generating agreements.”

Sasol corporate advertising agreement

Emerge has secured its first corporate advertising agreement with Sasol. Sasol is a global integrated chemicals and energy company listed in South Africa (JSE: SOL) and the United States (NYSE: SSL) with operations spanning 30 countries and holding a 70-year trading history with a ~US$10 billion market capitalisation.

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Emerge Gaming Limited | ABN 31 004 766 376 | emergegaming.com.au | info@emergegaming.com.au | +61 2 9680 8777

ASX:EM1 | ABN 31 004 766 376

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Under this agreement Emerge will earn ZAR 2,940,000 (±A$280,000) in revenue by offering a competition with a customised ‘infinity runner’ mobile game developed by Emerge’s gaming studio, operating 20 Sasol branded tournaments, offering and operating competition activation through QR codes, and paying out and distributing ZAR 300,000 (±A$28,000) in prizes for the Sasol tournaments.

The agreement with Sasol is for a fixed term to 31 December 2021 with services under the agreement to commence immediately.

Mobile games development studio

Emerge has also launched its own mobile games development studio. The studio focusses on building multi-purpose mobile games across all genres.

This studio will service Emerge’s corporate advertising division allowing EM1 to offer corporate brands bespoke skinned mobile games to support branded gaming and competitions, and to drive brand and subscriber activations.

The studio will also develop mobile games for use on the Emerge operated MIGGSTER and MTN Arena competitive social gaming platforms, creating thematic seasonal gaming assets and delivering fresh, entertaining content for subscribers.

On Emerge’s retro gaming themed experiences, Gregory Stevens, said: “Video games seem to trigger an even stronger sense of nostalgia than childhood toys do. This is thought to be because we invest more emotions into playing these video games, such as intense feelings of happiness, defeat, competitiveness and even fulfilment. Games seem to produce neuro feedback loops in the brain that in turn produce endorphins and reward players for participating in gameplay.”

Global opportunity for brands in gaming

According to Major Device Group’s research on Worldwide Consumer Spending on Games, mobile gaming is now the primary driver of growth for digital games consumption. It is set to extend its global lead to more than three times the value spent on home and handheld consoles in 2021.

One year into the COVID-19 pandemic, demand for mobile gaming has remained strong with no sign of slowing down. Globally, users downloaded 30% more mobile games per week in Q1 2021 than in Q4 2019, with over 1 billion games downloaded per week.[1]

In Q1 2021, consumers spent US$1.7 billion per week on mobile games, up 40% from pre-pandemic levels. Game publishers are increasingly prioritising mobile as part of their platform of choice to expand their user base.[2]

The mobile games trend correlates with the significant appetite for easy-to-play hyper-casual games, which, out of all gaming subgenres, experienced the greatest growth in market share by downloads last year.

1 App Annie & IDC

2 App Annie & IDC

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Emerge Gaming Limited | ABN 31 004 766 376 | emergegaming.com.au | info@emergegaming.com.au | +61 2 9680 8777

ASX:EM1 | ABN 31 004 766 376

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Commenting on this Gregory Stevens added: “The case for gaming as an advertising platform is clear with gaming predicted to reach over 2.8 billion people globally in 2021 and gamers predicted to generate over US$189.3 billion in revenue. In the wider context of the entertainment industry, American sports alone is estimated to be a US$75 billion industry and the global film industry US$100 billion[3] . Gaming is already bigger than both of these combined and accessing this branding opportunity is becoming an ever important and developing focus of corporate advertising budgets. In response advertising agencies are progressing their offerings to including measurable experiential brand activations targeting gaming audiences. Emerge is offering this solution to corporate brands and their agencies delivering access to a significant global community of gamers.”

Further information:

E: info@emergegaming.com.au

P: + 61 2 9680 8777

Media:

Ophelia Phu E: ophelia@bluechipcommunication.com.au P: +61 431 567 985

3 Newzoo

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Emerge Gaming Limited | ABN 31 004 766 376 | emergegaming.com.au | info@emergegaming.com.au | +61 2 9680 8777

ASX:EM1 | ABN 31 004 766 376

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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: view www.emergegaming.com.au

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

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Emerge Gaming Limited | ABN 31 004 766 376 | emergegaming.com.au | info@emergegaming.com.au | +61 2 9680 8777