ESE Entertainment Reports First Quarter 2023 Results

• Quarterly revenue of $13.92 million, year-over-year increase of 73%
• Gross profit of $2.45 million, year-over-year increase of 283%
• Positive Adjusted EBITDA¹ for the three months ended January 31, 2023

VANCOUVER, BC / ACCESSWIRE / March 31, 2023 / ESE Entertainment Inc. ("ESE" or the "Company") (TSXV:ESE)(OTCQX:ENTEF), a gaming and esports company that provides a range of services to leading video game developers and publishers, is pleased to announce that it has filed its unaudited condensed interim consolidated financial statements (the "Financial Statements") and related management's discussion and analysis (the "MD&A") for the three months ended January 31, 2023 ("Q1 2023") the highlights of which are presented in this news release. The Financial Statements and MD&A are available on www.sedar.com and on the Company's website.

Q1 2023 Financial Highlights:

• Revenue of $13.92 million for Q1 2023, representing a 73% increase from Q1 2022 revenue of $8.03 million.
• Gross profit of $2.45 million for Q1 2023, representing a 283% increase from Q1 2022 gross profit of $0.64 million.
• Positive Adjusted EBITDA¹ of $9,480 for the three months ended January 31, 2023, compared to adjusted EBITDA loss of $795,338 for the three months ended January 31, 2022.
• Total assets as at January 31, 2023 of $18.87 million, achieving a positive current ratio.²

"At ESE, we are dynamic and adapt to market conditions and listen to shareholder feedback, which is why we are committed to focusing on achieving profitability and high gross margins as we celebrate new milestones in our year-over-year growth. We believe that the market has not adequately valued the Company, so we have taken actionable steps to unlock value. Firstly, we have executed an LOI for the sale of Frenzy and Digital Motorsports for consideration valued at $41 million. Secondly, we are focusing more on our core intellectual property and technology offering, GameAddik. This quarter has been a period of implementation for our 2023 success plan, which will allow us to establish long term sustainability and pursuit of profitability." stated Konrad Wasiela, CEO of ESE.

"We are confident that our strategic investments and commitment to our shareholders' priorities will result in increased profitability and higher gross profits in the coming quarters, showcasing the true potential of ESE. Our financial position has shown strong improvement, underpinned by a positive current ratio, demonstrating our commitment to maintaining stability and delivering value to our shareholders." stated Andrea Lieuwen, CFO of ESE.

Q1 2023 Operational Highlights:

• In November 2022, ESE achieved record monthly ecommerce revenue.
• In December 2022, ESE's esports team, K1CK, qualified for an esports event with a $1 Million USD prize pool.
• On January 4, 2023, ESE announced that its esports competition, Ultraliga, surpassed 10,000,000 views in 2022.
• On January 10, 2023, ESE's CEO Konrad Wasiela was featured in an interview and article with the Toronto Star.
• In January 2023, ESE completed a non-brokered private placement of units for aggregate gross proceeds of $2,000,000.

The financial and operating results discussed in this news release are based on the Financial Statements and MD&A, which were released on March 31, 2023. It is only in the context of the fulsome information and disclosures contained in the Financial Statements and MD&A that an investor can properly analyze this information. The Financial Statements and MD&A will be published under the Company's profile on SEDAR at www.sedar.com.

All amounts are in Canadian dollars.

ESE Entertainment Inc.

Konrad Wasiela
Chief Executive Officer and Director
+1 (437) 826-4012

About ESE Entertainment Inc.

ESE is a global technology company focused on gaming and esports. 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 ecommerce channels, esports teams, and gaming leagues. |www.esegaming.com

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that ESE anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, statements with respect to: the Company's ability to achieve increased profitability and high gross margins; the completion of the acquisition of Frenzy and Digital Motorsports and the consideration payable thereunder; the Company's plans to focus on its core intellectual property and technology offering, GameAddik; the Company establishing long term sustainability; and the Company delivering value to its shareholders. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of ESE to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to ESE, including information obtained from third-party industry analysts and other third-party sources, and are based on management's current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of ESE should be considered highly speculative.

This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about ESE's prospective results of operations and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraph. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about ESE's future business operations. ESE disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

NON-IFRS MEASURES

This press release includes references to adjusted EBITDA. Adjusted EBITDA is a non-IFRS financial measure and is defined by the Company as net income or loss before income taxes, depreciation, commissions, finder's fees and stamp duty for acquisitions, share-based payments, interest, impairment of assets, accretion, and foreign exchange gain or loss. We believe that adjusted EBITDA is a useful measure of financial performance because it provides an indication of the Company's ability to capitalize on growth opportunities in a cost-effective manner, finance its ongoing operations and service its financial obligations.

This non-IFRS financial measure is not an earnings or cash flow measure recognized by IFRS and does not have a standardized meaning prescribed by IFRS. Our method of calculating such a financial measure may differ from the methods used by other issuers and, accordingly, our definition of this non-IFRS financial measure may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information about ESE, please contact:

Daniel Mogil
investors@esegaming.com
+1 (437) 826-4012

ESE ENTERTAINMENT INC.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in Canadian Dollars)
(Unaudited - Prepared by Management)

Nature and continuance of operations - Note 1
Subsequent events - Note 23

ESE ENTERTAINMENT INC.
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
For the three months ended January 31, 2023 and 2022
(Expressed in Canadian Dollars)
(Unaudited - Prepared by Management)