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<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
accompanying unaudited financial statements have been prepared by Shoal Games Ltd. ("the Company") in conformity with
accounting principles generally accepted in the United States of America ("US GAAP") applicable to interim financial
information and with the rules and regulations of the United States Securities and Exchange Commission.  Accordingly, certain
information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally
accepted accounting principles have been condensed, or omitted, pursuant to such rules and regulations.  In the opinion of
management, the unaudited interim consolidated financial statements include all adjustments necessary for the fair presentation
of the results of the interim periods presented.  All adjustments are of a normal recurring nature, except as otherwise noted
below.  These unaudited interim consolidated financial statements should be read in conjunction with the Company's audited
consolidated financial statements and notes thereto for the year ended December 31, 2015, included in the Company's Annual Report
on Form 10-K, filed March 17, 2016, with the Securities and Exchange Commission.  The results of operations for the interim
periods are not necessarily indicative of the results of operations for any other interim period or for a full fiscal year.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"><b>Continuing
operations</b></font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">These
unaudited interim consolidated financial statements have been prepared on the going concern basis, which presumes the realization
of assets and the settlement of liabilities in the normal course of operations.  The application of the going concern basis
is dependent upon the Company achieving profitable operations to generate sufficient cash flows to fund continued operations, or,
in the absence of adequate cash flows from operations, obtaining additional financing.  The Company has reported losses from
operations for the quarters ended March 31, 2016 and 2015, and has an accumulated deficit of $19,041,004 as at March 31, 2016. 
This raises substantial doubt about the Company's ability to continue as a going concern.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">In
view of the matters described in the preceding paragraph, recoverability of a major portion of the recorded asset amounts and settlement
of the liability amounts shown in the accompanying balance sheets is dependent upon continued operations of the Company, which
in turn is dependent upon the Company's ability to succeed in its future operations. The financial statements do not include any
adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities
that might be necessary should the Company be unable to continue in existence.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Management
continues to review operations in order to identify additional strategies designed to generate cash flow, improve the Company's
financial position, and enable the timely discharge of the Company's obligations.  If management is unable to identify sources
of additional cash flow in the short term, it may be required to further reduce or limit operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-align: justify; text-indent: -21.5pt"><font style="font-style: normal">(a)
    Basis of presentation:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">These
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United
States Securities and Exchange Commission. The financial statements include the accounts of the Company's wholly-owned subsidiaries,
Shoal Media (Canada) Inc. (registered in British Columbia, Canada), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com
(Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned
subsidiary, Shoal Games (UK) Plc (registered in the United Kingdom). During the quarter ended March 31, 2016, English Bay Office
Management Limited changed its name to Shoal Media (Canada) Inc. All inter-company balances and transactions have been eliminated
in the consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.7pt; text-align: justify; text-indent: -21.5pt"><font style="font-style: normal">(b)
    Use of estimates:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">The
preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and recognized revenues and expenses for the reporting periods.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Significant
areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable and
the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 107.7pt; text-align: justify; text-indent: -93.5pt"><font style="font-style: normal">(c)
    Revenue recognition:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Trophy
Bingo revenues have been recognized from the sale of in-game purchases at the time of purchase. The revenue from in-game advertising
is recognized when advertising is served to the player.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Advertising
revenues, not generated in Trophy Bingo, have been recognized when collection of the amounts are reasonably assured.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.75pt; text-align: justify; text-indent: -21.55pt"><font style="font-style: normal">(d)
    Foreign currency:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">The
consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries.
The Company accounts for foreign currency transactions and the translation of foreign currency financial statements under Statement
ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing
at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect
the exchange rate at that date.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">Non-monetary
assets and liabilities are translated at the exchange rate on the original transaction date.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Gains
and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in net income. Revenues
and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 21.3pt; text-align: justify; text-indent: -7.1pt"><font style="font-style: normal">(e)    
Impairment of long-lived assets and long-lived assets to be disposed of:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 21.3pt; text-align: justify; text-indent: -7.1pt"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350,
Intangibles-Goodwill and Others. During the years presented, the only long-lived assets reported on the Company's consolidated
balance sheet are equipment, other assets, and security deposits.  These provisions require that long-lived assets and certain
identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the
carrying amount of an asset to future net cash flows expected to be generated by the asset.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">If
such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount
of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount
and the fair value less costs to sell.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; text-indent: -21.25pt"><font style="font-style: normal">(g)    
Software Development Costs:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify; text-indent: -21.25pt"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Software
development costs incurred in the research and development of new software products and enhancements to existing software products
for external use are expensed as incurred once technological feasibility has been established. After technological feasibility
is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the
estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current
and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility
and is amortizing the capitalized software development costs over a period of 3 years. The Company performs an annual review of
the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">If
a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the
applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates
and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases
in revenue that could be material.  Total software development costs for the development of Trophy Bingo were $4,075,019 as
at March 31, 2016 (March 31, 2015 - $2,940,457).</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.2pt"><font style="font-style: normal">(h)  
  New accounting pronouncements and changes in accounting policy:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 14.2pt"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU
2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer
of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when
it becomes effective. In July 2015, the FASB approved a one-year deferral of the effective date of the new revenue recognition
standard. The new standard will become effective for the Company on January 1, 2018 and the Company has the option to adopt it
effective January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. In
March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations
(Reporting Revenue versus Net) ("ASU 2016-08"), which clarifies the implementation guidance on principal versus agent
considerations in the new revenue recognition standard. ASU 2016-08 clarifies how an entity should identify the unit of accounting
(i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to
certain types of arrangements. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with
Customers (Topic 606), Identifying Performance Obligations and Licensing ("ASU 2016-10"), which amends certain aspects
of the guidance on identifying performance obligations and the implementation guidance on licensing. The Company is evaluating
the effect the ASUs will have on its consolidated financial statements and related disclosures. The Company has not yet selected
an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation. This guidance requires that a performance target that
affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such,
the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies
that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved
and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered.
The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015
and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual
period presented as an adjustment to opening retained earnings. Early adoption is permitted. The adoption of ASU 2014-12 did not
have a material impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure
of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance
about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going
concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual
periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the
effect of ASU 2014-15 on our consolidated financial condition and results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in
the Form of a Share Is More Akin to Debt or to Equity. This standard requires an entity to "determine the nature of the host
contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each
term and feature on the basis of the relevant facts and circumstances which the hybrid financial instrument was issued or acquired
and the potential outcome of the hybrid financial instrument.  ASU 2014-16 is effective for annual periods ending after December
15, 2015 and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-16 did not have a material impact
on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
January 2015, the FASB issued ASU 2015-01, which eliminates from GAAP the concept of extraordinary items. If an event or transaction
meets the criteria for extraordinary classification, it is segregated from the results of ordinary operations and is shown as a
separate item in the income statement, net of tax. ASU 2015-01 is effective for annual periods, and interim periods within those
annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-01 did not have a material
impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
February 2015, the FASB issued ASU 2015-02, which provides guidance for reporting entities that are required to evaluate whether
they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation
under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods
within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-02 did not
have a material impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">On
April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09, which outlines a single comprehensive model for entities
to use in accounting for revenues arising from contracts with customers and notes that lease contracts with customers are a scope
exception. Public business entities may elect to adopt the amendments as of the original effective date; however, if the proposed
deferral is approved, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently assessing
the impact of the guidance on our consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">On
April 17, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance
costs to be presented in the balance sheet as a direct deduction from the associated debt liability.  Currently, debt issuance
costs are recorded as an asset and amortization of these deferred financing costs is recorded in interest expense.  Under
the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will
continue to be recorded in interest expense.  The new standard is effective for the Company on January 1, 2016 and will be
applied on a retrospective basis.  The adoption of ASU 2015-03 did not have a material impact on our financial condition,
liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
FASB has issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting
for Fees Paid in a Cloud Computing Arrangement.  The amendments in ASU 2015-05 provide guidance to customers about whether
a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the
customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.
If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service
contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments,
all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. 
ASU 2015-05 is effective for public entities for annual periods, including interim periods within those annual periods, beginning
after December 15, 2015. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results
of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments guidance to simplify
the accounting for adjustments in a business combination. An acquirer should recognize adjustments to provisional amounts with
a corresponding adjustment of goodwill, as well as the effect on earnings of changes in depreciation, amortization or other income
effects, in the reporting period in which the adjustments are identified as if the accounting had been completed at the acquisition
date. Disclosure is required, by line item, of the amount recorded in current period earnings that would have been recorded in
previous reporting periods. This guidance is effective for fiscal years and interim periods beginning after December 15, 2015,
and requires prospective application. Early adoption is permitted. The adoption of ASU 2015-16 did not have a material impact on
our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires
deferred income tax liabilities and assets to be classified as noncurrent on the balance sheet rather than being separated into
current and noncurrent. The guidance is effective for public entities for annual periods beginning after December 15, 2016, and
interim periods within those annual periods with early adoption being permitted. The Company is still assessing the potential impact
of ASU 2015-17 on its consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial
Assets and Financial Liabilities ("ASU 2016-01"), which requires that equity investments, except for those accounted
for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes
in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable
fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions
for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements
for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within
those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does
not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance
sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12
months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a
term of twelve months or less. The ASU does not significantly change the lessees' recognition, measurement and presentation of
expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the
previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors
will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this
guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early
adoption permitted. Management is evaluating the requirements of this guidance and has not yet determined the impact of the adoption
on the Company's financial position or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products
("ASU 2016-04"). The new standard specifies that liabilities within its scope are considered to be financial liabilities,
and amends the guidance in ASC 405-20, Extinguishments of Liabilities, by directing entities to derecognize prepaid stored-value
product liabilities based on expected breakage in proportion to the pattern of rights expected to be exercised by the consumer.
Derecognition for breakage is permitted only to the extent that it is probable that a significant reversal of recognized breakage
will not subsequently occur. The new standard is consistent with the breakage guidance in the new revenue standard. The ASU is
effective for annual periods beginning after December 15, 2017, and is applied either using a modified retrospective transition
method or retrospectively. Early adoption is permitted. The Company is currently evaluating the expected impact of the adoption
of this standard on its consolidated financial statements and related disclosures.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call
Options in Debt Instruments ("ASU 2016-06"). The new standard clarifies that an entity is required to assess whether
the economic characteristics and risks of embedded put or call options are clearly and closely related to those of their debt hosts
only in accordance with the four-step decision sequence in ASU 815, Derivatives and Hedging. For contingently exercisable put or
call options, an entity does not have to assess whether the event that triggers the ability to exercise a put or call option is
related to interest rates or credit risk of the entity. The ASU does not change the existing criteria for determining when bifurcation
of an embedded put or call option in a debt instrument is required. The amendments of this ASU are effective for annual periods
beginning after December 15, 2016, with early adoption permitted. Entities are required to apply the guidance to existing debt
instruments using a modified retrospective transition method as of the period of adoption. The Company does not expect the adoption
of this ASU to have a significant impact on its consolidated financial statements and related disclosures.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued ASU No. 2016-07, "Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to
the Equity Method of Accounting." The new standard eliminates the requirement that an investor retroactively apply equity
method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. Public
business entities should apply the guidance in ASU 2016-07 for annual periods beginning after December 15, 2016, including interim
periods within those annual periods, with early adoption permitted.  We are currently evaluating the provisions of ASU 2016-07
and assessing the impact on our financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements
to Employee Share-Based Payment Accounting ("ASU 2016-09"), which addresses how companies account for certain aspects
of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement
of income when the awards vest or are settled, and to present excess tax benefits as an operating activity on the statement of
cash flows rather than as a financing activity. The ASU also addresses such areas as an accounting policy election for forfeitures
and the amount an employer can withhold to cover income taxes and still qualify for equity classification. The amendments in this
ASU will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early
adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial
statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"> </p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">There
have been no other recent accounting standards, or changes in accounting standards, during the quarter ended March 31, 2016, as
compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential
material significance, to us.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 17.85pt; text-align: justify; text-indent: -3.65pt"><font style="font-style: normal"> (i)    
Financial instruments:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">(i) 
Fair values:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related
party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash
is carried at fair value using a level 1 fair value measurement.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or
liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates
and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included
situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">(ii) 
Foreign currency risk:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations. 
The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange
risk.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">These
consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United
States of America ("US GAAP") applicable to annual financial information and with the rules and regulations of the United
States Securities and Exchange Commission. The financial statements include the accounts of the Company's wholly-owned subsidiaries,
Shoal Media (Canada) Inc. (registered in British Columbia, Canada), Coral Reef Marketing Inc. (registered in Anguilla), Bingo.com
(Antigua) Inc., Bingo.com (Wyoming) Inc., Bingo Acquisition Corp, Shoal Media Inc. (registered in Anguilla), and the 99% owned
subsidiary, Shoal Games (UK) Plc (registered in the United Kingdom). During the quarter ended March 31, 2016, English Bay Office
Management Limited changed its name to Shoal Media (Canada) Inc. All inter-company balances and transactions have been eliminated
in the consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">The
preparation of consolidated financial statements in conformity with U.S. GAAP, requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date
of the financial statements and recognized revenues and expenses for the reporting periods.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Significant
areas requiring the use of estimates include the valuation of long-lived assets, the collectibility of accounts receivable and
the valuation of deferred tax assets.  Actual results may differ significantly from these estimates.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"></font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Trophy
Bingo revenues have been recognized from the sale of in-game purchases at the time of purchase. The revenue from in-game advertising
is recognized when advertising is served to the player.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Advertising
revenues, not generated in Trophy Bingo, have been recognized when collection of the amounts are reasonably assured.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">The
consolidated financial statements are presented in United States dollars, the functional currency of the Company and its subsidiaries.
The Company accounts for foreign currency transactions and the translation of foreign currency financial statements under Statement
ASC 830, Foreign Currency Matters. Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing
at the transaction dates. Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect
the exchange rate at that date.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal">Non-monetary
assets and liabilities are translated at the exchange rate on the original transaction date.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 36pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Gains
and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in net income. Revenues
and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in earnings.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
Company accounts for long-lived assets in accordance with the provisions of ASC 360, Property, Plant and Equipment and ASC 350,
Intangibles-Goodwill and Others. During the years presented, the only long-lived assets reported on the Company's consolidated
balance sheet are equipment, other assets, and security deposits.  These provisions require that long-lived assets and certain
identifiable recorded intangibles be reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the
carrying amount of an asset to future net cash flows expected to be generated by the asset.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">If
such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount
of the assets exceeds the fair value of the assets.  Assets to be disposed of are reported at the lower of the carrying amount
and the fair value less costs to sell.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">Software
development costs incurred in the research and development of new software products and enhancements to existing software products
for external use are expensed as incurred once technological feasibility has been established. After technological feasibility
is established, any software development costs are capitalized and amortized at the greater of the straight-line basis over the
estimated economic life of the related product or the ratio that current gross revenues for a product bear to the total of current
and anticipated future gross revenues for the related product. Commencing January 1, 2014, the Company obtained technological feasibility
and is amortizing the capitalized software development costs over a period of 3 years. The Company performs an annual review of
the estimated economic life and the recoverability of such capitalized software costs, using a net realizable value test.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">If
a determination is made that capitalized amounts are not recoverable based on the estimated cash flows to be generated from the
applicable software, any remaining capitalized amounts are written off. Although the Company believes that its approach to estimates
and judgments as described herein is reasonable, actual results could differ and the Company may be exposed to increases or decreases
in revenue that could be material.  Total software development costs for the development of Trophy Bingo were $4,075,019 as
at March 31, 2016 (March 31, 2015 - $2,940,457).</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers ("ASU
2014-09"), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer
of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when
it becomes effective. In July 2015, the FASB approved a one-year deferral of the effective date of the new revenue recognition
standard. The new standard will become effective for the Company on January 1, 2018 and the Company has the option to adopt it
effective January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. In
March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations
(Reporting Revenue versus Net) ("ASU 2016-08"), which clarifies the implementation guidance on principal versus agent
considerations in the new revenue recognition standard. ASU 2016-08 clarifies how an entity should identify the unit of accounting
(i.e., the specified good or service) for the principal versus agent evaluation and how it should apply the control principle to
certain types of arrangements. In April 2016, the FASB issued Accounting Standards Update No. 2016-10, Revenue from Contracts with
Customers (Topic 606), Identifying Performance Obligations and Licensing ("ASU 2016-10"), which amends certain aspects
of the guidance on identifying performance obligations and the implementation guidance on licensing. The Company is evaluating
the effect the ASUs will have on its consolidated financial statements and related disclosures. The Company has not yet selected
an adoption date, a transition method nor has it determined the effect of the standard on its ongoing financial reporting.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation. This guidance requires that a performance target that
affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such,
the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies
that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved
and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered.
The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015
and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual
period presented as an adjustment to opening retained earnings. Early adoption is permitted. The adoption of ASU 2014-12 did not
have a material impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure
of Uncertainties about an Entity's Ability to Continue as a Going Concern ("ASU 2014-15"). ASU 2014-15 provides guidance
about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going
concern and sets rules for how this information should be disclosed in the financial statements. ASU 2014-15 is effective for annual
periods ending after December 15, 2016 and interim periods thereafter. Early adoption is permitted. The Company is evaluating the
effect of ASU 2014-15 on our consolidated financial condition and results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
November 2014, the FASB issued ASU No. 2014-16, Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in
the Form of a Share Is More Akin to Debt or to Equity. This standard requires an entity to "determine the nature of the host
contract by considering all stated and implied substantive terms and features of the hybrid financial instrument, weighing each
term and feature on the basis of the relevant facts and circumstances which the hybrid financial instrument was issued or acquired
and the potential outcome of the hybrid financial instrument.  ASU 2014-16 is effective for annual periods ending after December
15, 2015 and interim periods thereafter. Early adoption is permitted. The adoption of ASU 2014-16 did not have a material impact
on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
January 2015, the FASB issued ASU 2015-01, which eliminates from GAAP the concept of extraordinary items. If an event or transaction
meets the criteria for extraordinary classification, it is segregated from the results of ordinary operations and is shown as a
separate item in the income statement, net of tax. ASU 2015-01 is effective for annual periods, and interim periods within those
annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-01 did not have a material
impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
February 2015, the FASB issued ASU 2015-02, which provides guidance for reporting entities that are required to evaluate whether
they should consolidate certain legal entities. In accordance with ASU 2015-02, all legal entities are subject to reevaluation
under the revised consolidation model. ASU 2015-02 is effective for public business entities for annual periods, and interim periods
within those annual periods, beginning after December 15, 2015. Early adoption is permitted. The adoption of ASU 2015-02 did not
have a material impact on our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">On
April 1, 2015, the FASB voted to defer the effective date of ASU No. 2014-09, which outlines a single comprehensive model for entities
to use in accounting for revenues arising from contracts with customers and notes that lease contracts with customers are a scope
exception. Public business entities may elect to adopt the amendments as of the original effective date; however, if the proposed
deferral is approved, adoption is required for annual reporting periods beginning after December 15, 2017. We are currently assessing
the impact of the guidance on our consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">On
April 17, 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance
costs to be presented in the balance sheet as a direct deduction from the associated debt liability.  Currently, debt issuance
costs are recorded as an asset and amortization of these deferred financing costs is recorded in interest expense.  Under
the new standard, debt issuance costs will continue to be amortized over the life of the debt instrument and amortization will
continue to be recorded in interest expense.  The new standard is effective for the Company on January 1, 2016 and will be
applied on a retrospective basis.  The adoption of ASU 2015-03 did not have a material impact on our financial condition,
liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
FASB has issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer's Accounting
for Fees Paid in a Cloud Computing Arrangement.  The amendments in ASU 2015-05 provide guidance to customers about whether
a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the
customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses.
If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service
contract. The amendments do not change the accounting for a customer's accounting for service contracts. As a result of the amendments,
all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. 
ASU 2015-05 is effective for public entities for annual periods, including interim periods within those annual periods, beginning
after December 15, 2015. The adoption of ASU 2015-05 did not have a material impact on our financial condition, liquidity or results
of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments guidance to simplify
the accounting for adjustments in a business combination. An acquirer should recognize adjustments to provisional amounts with
a corresponding adjustment of goodwill, as well as the effect on earnings of changes in depreciation, amortization or other income
effects, in the reporting period in which the adjustments are identified as if the accounting had been completed at the acquisition
date. Disclosure is required, by line item, of the amount recorded in current period earnings that would have been recorded in
previous reporting periods. This guidance is effective for fiscal years and interim periods beginning after December 15, 2015,
and requires prospective application. Early adoption is permitted. The adoption of ASU 2015-16 did not have a material impact on
our financial condition, liquidity or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes , which requires
deferred income tax liabilities and assets to be classified as noncurrent on the balance sheet rather than being separated into
current and noncurrent. The guidance is effective for public entities for annual periods beginning after December 15, 2016, and
interim periods within those annual periods with early adoption being permitted. The Company is still assessing the potential impact
of ASU 2015-17 on its consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial
Assets and Financial Liabilities ("ASU 2016-01"), which requires that equity investments, except for those accounted
for under the equity method or those that result in consolidation of the investee, be measured at fair value, with subsequent changes
in fair value recognized in net income. However, an entity may choose to measure equity investments that do not have readily determinable
fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions
for the identical or a similar investment of the same issuer. ASU 2016-01 also impacts the presentation and disclosure requirements
for financial instruments. ASU 2016-01 is effective for public business entities for annual periods, and interim periods within
those annual periods, beginning after December 15, 2017. Early adoption is permitted only for certain provisions. The Company does
not expect that the adoption of ASU 2016-01 will have a material effect on its consolidated financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on the balance
sheet. This ASU requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12
months. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a
term of twelve months or less. The ASU does not significantly change the lessees' recognition, measurement and presentation of
expenses and cash flows from the previous accounting standard. Lessors' accounting under the ASC is largely unchanged from the
previous accounting standard. In addition, the ASU expands the disclosure requirements of lease arrangements. Lessees and lessors
will use a modified retrospective transition approach, which includes a number of practical expedients. The provisions of this
guidance are effective for annual periods beginning after December 15, 2018, and interim periods within those years, with early
adoption permitted. Management is evaluating the requirements of this guidance and has not yet determined the impact of the adoption
on the Company's financial position or results of operations.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-04, Recognition of Breakage for Certain Prepaid Stored-Value Products
("ASU 2016-04"). The new standard specifies that liabilities within its scope are considered to be financial liabilities,
and amends the guidance in ASC 405-20, Extinguishments of Liabilities, by directing entities to derecognize prepaid stored-value
product liabilities based on expected breakage in proportion to the pattern of rights expected to be exercised by the consumer.
Derecognition for breakage is permitted only to the extent that it is probable that a significant reversal of recognized breakage
will not subsequently occur. The new standard is consistent with the breakage guidance in the new revenue standard. The ASU is
effective for annual periods beginning after December 15, 2017, and is applied either using a modified retrospective transition
method or retrospectively. Early adoption is permitted. The Company is currently evaluating the expected impact of the adoption
of this standard on its consolidated financial statements and related disclosures.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-06, Derivatives and Hedging (Topic 815), Contingent Put and Call
Options in Debt Instruments ("ASU 2016-06"). The new standard clarifies that an entity is required to assess whether
the economic characteristics and risks of embedded put or call options are clearly and closely related to those of their debt hosts
only in accordance with the four-step decision sequence in ASU 815, Derivatives and Hedging. For contingently exercisable put or
call options, an entity does not have to assess whether the event that triggers the ability to exercise a put or call option is
related to interest rates or credit risk of the entity. The ASU does not change the existing criteria for determining when bifurcation
of an embedded put or call option in a debt instrument is required. The amendments of this ASU are effective for annual periods
beginning after December 15, 2016, with early adoption permitted. Entities are required to apply the guidance to existing debt
instruments using a modified retrospective transition method as of the period of adoption. The Company does not expect the adoption
of this ASU to have a significant impact on its consolidated financial statements and related disclosures.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued ASU No. 2016-07, "Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to
the Equity Method of Accounting." The new standard eliminates the requirement that an investor retroactively apply equity
method accounting when an investment that it had accounted for by another method initially qualifies for the equity method. Public
business entities should apply the guidance in ASU 2016-07 for annual periods beginning after December 15, 2016, including interim
periods within those annual periods, with early adoption permitted.  We are currently evaluating the provisions of ASU 2016-07
and assessing the impact on our financial statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
March 2016, the FASB issued Accounting Standards Update No. 2016-09, Compensation-Stock Compensation (Topic 718): Improvements
to Employee Share-Based Payment Accounting ("ASU 2016-09"), which addresses how companies account for certain aspects
of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement
of income when the awards vest or are settled, and to present excess tax benefits as an operating activity on the statement of
cash flows rather than as a financing activity. The ASU also addresses such areas as an accounting policy election for forfeitures
and the amount an employer can withhold to cover income taxes and still qualify for equity classification. The amendments in this
ASU will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early
adoption is permitted. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial
statements.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">There
have been no other recent accounting standards, or changes in accounting standards, during the quarter ended March 31, 2016, as
compared to the recent accounting standards described in the Annual Report, that are of material significance, or have potential
material significance, to us.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">(i) 
Fair values:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
fair value of accounts receivable, accounts payable, accrued liabilities and accounts payable and accrued liabilities - related
party approximate their financial statement carrying amounts due to the short-term maturities of these instruments.  Cash
is carried at fair value using a level 1 fair value measurement.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">In
general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or
liabilities. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates
and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset or liability, and included
situations where there is little, if any, market activity for the asset.  The Company's cash was measured using Level 1 inputs.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">(ii) 
Foreign currency risk:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 35.45pt; text-align: justify"><font style="font-style: normal">The
Company operates internationally, which gives rise to the risk that cash flows may be adversely impacted by exchange rate fluctuations. 
The Company has not entered into any forward exchange contracts or other derivative instrument to hedge against foreign exchange
risk.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">During
the year ended December 31, 2012, the Company commenced development of a social bingo game. During the quarter ended March 31,
2014, the Company launched Trophy Bingo on Android in selected markets. The Company ceased to capitalize the development costs
and commenced the amortization of the capitalized development costs over a period of three years.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">March 31, 2016</font></td>
<td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Capitalized<br />
Expenses</font></td>
<td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Accumulated<br />
amortization</font></td>
<td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt"><font style="font-style: normal">Net
book<br />
Value</font></p></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Trophy Bingo capitalized development expenses</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,446,038</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,084,528</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">361,510</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-style: normal"><b> </b></font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">December 31, 2015</font></td>
<td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Capitalized<br />
Expenses</font></td>
<td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Accumulated<br />
amortization</font></td>
<td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt"><font style="font-style: normal">Net
book<br />
Value</font></p></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Trophy Bingo capitalized development expenses</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,446,038</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">964,025</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">482,013</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">During
the 2015 fiscal year, the Company expensed $1,230,216 in development costs. During the quarter ended March 31, 2016, the Company
expensed $217,383 (March 31, 2015 - $313,037) in development costs. The Company has incurred $4,075,019 in total development expenses
as at March 31, 2016.</font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">March 31, 2016</font></td>
<td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Capitalized<br />
Expenses</font></td>
<td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Accumulated<br />
amortization</font></td>
<td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt"><font style="font-style: normal">Net
book<br />
Value</font></p></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Trophy Bingo capitalized development expenses</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,446,038</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,084,528</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">361,510</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"><font style="font-style: normal"><b> </b></font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="width: 35%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">December 31, 2015</font></td>
<td style="width: 9%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Capitalized<br />
Expenses</font></td>
<td style="width: 7%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 14%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Accumulated<br />
amortization</font></td>
<td style="width: 6%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="width: 15%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 8.25pt; text-align: right; text-indent: -8.25pt"><font style="font-style: normal">Net
book<br />
Value</font></p></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Trophy Bingo capitalized development expenses</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">1,446,038</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">964,025</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">482,013</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Effective
December 31, 2014, the Company sold the www.bingo.com domain name to Unibet Group plc. for cash consideration of $2,000,000 and
redemption of the 15,000,000 common shares of the Company, which were held by Unibet Group plc, at a price of $0.40 per share.
The 15,000,000 common shares held by Unibet have been returned to the Company's treasury and were cancelled.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">In
addition, the Company disposed its cash bingo business to Unibet Group plc. The company recognized the gain on the sale of the
cash bingo business of $16,305 in the quarter ended March 31, 2015.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">(a)       
Common stock issuances:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">No
shares were issued during the quarter ended March 31, 2016.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Subsequent
to the quarter ended March 31, 2016, the Company closed a private placement for 1,504,600 common shares at $0.60 per share which
raised proceeds of CAD$ 902,760.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0"><font style="font-style: normal">(b)      
Stock option plans:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">No
options were granted or exercised during the period ended March 31, 2016.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 3"><font style="font-style: normal">(c)      
Escrow shares</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">In
conjunction with the Listing Application for the TSX-V listing, the Company's major shareholders were required to place 33,909,104
common shares of the Company in escrow under the terms of a TSX-V Tier 1 issuer. The escrow shares will be released in thirty three
percent (33%) tranches on the dates that are six, twelve and eighteen months after the listing date. 11,303,035 was released during
the year end December 31, 2015. The Escrow Shares will be released as follows:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 67%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; width: 4%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 29%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Number of shares</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Balance December 31, 2015</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">22,606,069</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Released in the quarter ending March 31, 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">-</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Balance March 31, 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">22,606,069</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Shares eligible for release in 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">(22,606,069)</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Balance December 31, 2016</font></td>
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">-</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company leases office facilities in Vancouver, British Columbia, Canada, and The Valley, Anguilla, British West Indies. These office
facilities are leased under operating lease agreements. The Canadian operating lease expires on April 30, 2017. The Anguillan operating
lease automatically renews every 3 months unless 3 months notice is given.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Minimum
lease payments under these operating leases are approximately as follows:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 48%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="width: 33%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 6.3pt; text-align: right"> </td>
<td style="width: 19%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2016</font></td>
<td style="padding-right: 6.3pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">12,456</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2017</font></td>
<td style="padding-right: 6.3pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">5,203</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 6.3pt; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company paid rent expense totaling $5,426 for the quarter ended March 31, 2016 (March 31, 2015 - $5,740). </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a management consulting agreement with T.M. Williams (Row), Inc., an Anguilla incorporated company, and Mr. Williams,
a related party, for a consultancy payment based on the Company's performance with a minimum of $11,000 and a maximum of $25,000
per month.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a management consulting agreement with Jayska Consulting Ltd. and Mr. J. M. Williams, Chief Executive Officer of Shoal
Games Ltd. for the provision of services of Mr. J. M. Williams as Chief Executive Officer of the Company. The Consulting agreement
provides for a consultancy payment of GBP5,000 per month payable in arrears.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a management consulting agreement with LVA Media Inc. and Mr. J. M. Williams, for the provision of services of Mr.
J. M. Williams as Chief Executive Officer of Shoal Games Ltd. The Consulting agreement provides for a consultancy payment based
on the Company's performance with a minimum of $7,500 and a maximum of $25,000 per month.</font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 48%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="width: 33%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 6.3pt; text-align: right"> </td>
<td style="width: 19%; border-top: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2016</font></td>
<td style="padding-right: 6.3pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">12,456</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2017</font></td>
<td style="padding-right: 6.3pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">5,203</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 6.3pt; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Shoal
Games Ltd. is domiciled in the tax-free jurisdiction of Anguilla, British West Indies. However certain of the Company's subsidiaries
incur income taxation.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities
at March 31, 2016, and December 31, 2015, are presented below:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 52%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-style: normal">March
31,</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-style: normal">2016</font></p></td>
<td style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">December 31,<br />
2015</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">   Deferred tax assets:</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">      Net operating loss carry forwards</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">16,364</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">17,898</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">      Valuation Allowance</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">(16,364)</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">(17,898)</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">- </font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">- </font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">In
assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or
all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation
of future taxable income during the periods in which those differences become deductible.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Management
considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in assessing
the realizability of deferred tax assets.</font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td nowrap="nowrap" style="width: 52%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td nowrap="nowrap" style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td nowrap="nowrap" style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: 8pt Times New Roman, Times, Serif">
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-style: normal">March
31,</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: right"><font style="font-style: normal">2016</font></p></td>
<td nowrap="nowrap" style="width: 8%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td nowrap="nowrap" style="width: 16%; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">December 31,<br />
2015</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">   Deferred tax assets:</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">      Net operating loss carry forwards</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">16,364</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">17,898</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">      Valuation Allowance</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">(16,364)</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">(17,898)</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">- </font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; text-align: right"><font style="font-size: 8pt; font-style: normal">- </font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $36 (December 31, 2015 - $2,391) to a company owned by a current director and officer of the Company
for payment of services rendered of $33,000 (March 31, 2015 - $33,000) by the current director and officer of the Company.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $1,903 (December 31, 2015 - $6,507) to a current director and officer of the Company for expenses incurred.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $nil (December 31, 2015 - $14,804) to a company owned by a current director and officer of the Company
for payment of services rendered of $21,488 (March 31, 2015 - $22,744) by the current director and officer of the Company.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $nil (December 31, 2015 - $nil) to a company owned by a current director and officer of the Company
for payment of services rendered of $22,500 (March 31, 2015 - $22,500) by the current director and officer of the Company.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $nil (December 31, 2015 - $831) to a company owned by a current director of the Company for payment
of services rendered of $nil (March 31, 2015 - $nil) by the current director of the Company.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $8,500 (December 31, 2015 - $6,500), to independent directors of the Company for payment of services
rendered. During the quarter ended March 31, 2016, the Company accrued $2,000 (March 31, 2015 - $2,000) to the independent directors
in director fees.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company has a liability of $6,647 (December 31, 2015 - $1,533), to an officer of the Company for payment of services rendered and
expenses incurred of $19,050 (March 31, 2015 - $22,714) by the officer of the Company.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
related party transactions are in the normal course of operations and were measured at the exchange amount, which is the amount
of consideration established and agreed to by the related party.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"><u>Revenue</u></font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 17.85pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 17.85pt; text-align: justify"><font style="font-style: normal">During
the quarter ended March 31, 2016, the Company operated in one reportable business segment from the sale of in-app purchases on
Trophy Bingo.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0 0 0 17.85pt; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company had the following revenue by geographical region.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">Three Months ended March 31, 2016</font></td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">Three Months ended March 31, 2015</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 45%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal"><u>Total revenue from continuing operations</u></font></td>
<td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Western Europe</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">14,577</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,132</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Central, Eastern and Southern Europe</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">10</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Nordics</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">408</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">151</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">North America</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">89,849</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,983</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Other</font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">5,715</font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">4,425</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Total revenue from continuing operations</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">110,559</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">8,692</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"><u>Equipment</u></font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company's equipment is located as follows:</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="width: 54%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Net Book Value</font></td>
<td style="width: 4%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="width: 25%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">March 31, 2016</font></td>
<td style="width: 1%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="width: 16%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">December 31, 2015</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Anguilla</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,293</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,410</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Canada</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,259</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,436</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">United Kingdom</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,681</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,834</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">United States of America</font></td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">581</font></td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">634</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">5,814</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">6,314</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: bottom; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">Three Months ended March 31, 2016</font></td>
<td style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td colspan="2" style="vertical-align: top; border-top: black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">Three Months ended March 31, 2015</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 45%; padding-right: 5.4pt; padding-left: 5.4pt; text-decoration: underline; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal"><u>Total revenue from continuing operations</u></font></td>
<td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 20%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 5%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; width: 23%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="width: 1%; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Western Europe</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">14,577</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,132</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Central, Eastern and Southern Europe</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">10</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Nordics</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">408</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">151</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">North America</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">89,849</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,983</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Other</font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">5,715</font></td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">4,425</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Total revenue from continuing operations</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">110,559</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">8,692</font></td>
<td style="font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 8pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td nowrap="nowrap" style="width: 54%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Net Book Value</font></td>
<td nowrap="nowrap" style="width: 4%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td nowrap="nowrap" style="width: 25%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">March 31, 2016</font></td>
<td nowrap="nowrap" style="width: 1%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"> </td>
<td nowrap="nowrap" style="width: 16%; border-top: Black 1pt solid; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><font style="font-size: 8pt; font-style: normal">December 31, 2015</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Anguilla</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,293</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,410</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Canada</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,259</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">2,436</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">United Kingdom</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,681</font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">1,834</font></td></tr>
<tr style="vertical-align: top; background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">United States of America</font></td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">581</font></td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td style="border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">634</font></td></tr>
<tr style="vertical-align: top; font: 8pt Times New Roman, Times, Serif">
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">5,814</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">$</font></td>
<td style="border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">6,314</font></td></tr>
</table>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"><u>Major
customers</u></font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">For
the quarters ended March 31, 2016 and 2015 the Company sold in-app purchases on its social bingo site, Trophy Bingo. There was
no single player who had purchased more than 10% of the Trophy Bingo revenue.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">Financial
instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. 
The Company places its cash with high quality financial institutions and limits the amount of credit exposure with any one institution.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company currently maintains a substantial portion of its day-to-day operating cash balances at financial institutions. At March
31, 2016, the Company had total cash balances of $151,697 (December 31, 2015 - $570,086) at financial institutions, where $28,851
(December 31, 2015 - $303,983) is in excess of federally insured limits.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">As
of March 31, 2016, the Company had two customers totaling $41,360, who accounted for total accounts receivable greater than 10%.
As of December 31, 2015, the Company had three customers, totaling $40,818 who accounted for greater than 10% of the total accounts
receivable.</font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal"> </font></p>
<p style="font: italic 8pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="font-style: normal">The
Company controls credit risk through monitoring procedures and receiving prepayments of cash for services rendered.  The Company
performs credit evaluations of its customers but generally does not require collateral to support accounts receivable.</font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 8pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; width: 67%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; width: 4%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td>
<td nowrap="nowrap" style="vertical-align: bottom; width: 29%; border-top: Black 1pt solid; border-bottom: black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">Number of shares</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Balance December 31, 2015</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">22,606,069</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Released in the quarter ending March 31, 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">-</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: top; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="vertical-align: bottom; border-bottom: Black 1pt solid; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Balance March 31, 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">22,606,069</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">Shares eligible for release in 2016</font></td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"><font style="font-size: 8pt; font-style: normal">(22,606,069)</font></td></tr>
<tr style="background-color: #66FFFF; font: 8pt Times New Roman, Times, Serif">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt; font: italic 8pt Times New Roman, Times, Serif"> </td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; font: italic 8pt Times New Roman, Times, Serif"> </td></tr>
<tr style="vertical-align: bottom; font: 8pt Times New Roman, Times, Serif">
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"><font style="font-size: 8pt; font-style: normal">Balance December 31, 2016</font></td>
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="border-top: Black 1pt solid; border-bottom: Black 1.5pt double; font: italic 8pt Times New Roman, Times, Serif; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><font style="font-size: 8pt; font-style: normal">-</font></td></tr>
</table>
1446038
1446038
1084528
964025
-361510
-482013
4075019
1230216
4075019
2940457
12456
5203
5426
5740
0
0
110559
8692
14577
10
408
5715
1132
1
151
4425
89849
2983
28851
303983
41360
40818
0.10
0.10
22606069
22606069
0
-22606069
0
11303035
1504600
0.60
19334290
19334290
16364
17898
16364
17898
902760