TORONTO, ONTARIO--(Marketwired - May 31, 2017) - Tangelo Games Corp. ("Tangelo" or the "Company") (TSX VENTURE:GEL) reports its financial results for the first quarter of 2017 (the three-month period ended March 31, 2017).

HIGHLIGHTS

All figures CAD

• Tangelo generated revenue of $8.99 million for the three-month period ended March 31, 2017 compared to revenue of $10.86 million for the three-month period ended March 31, 2016. The Operating Loss was $0.57 million for the three-month period ended March 31, 2017 compared to $0.48 million for the three-month period ended March 31, 2016. Adjusted EBITDA of $2.43 million was realized for the three-month period ended March 31, 2017 compared to $3.00 million for the three-month period ended March 31, 2016 (see Non-IFRS measures).
• In March 2017, the Company was included on the shortlist of nominees in the "Product Innovation", "Social Slots Operator", "Acquisition Strategy" and "Slots Operator" categories for the EGR North America Awards 2017, one of the most significant recognitions in the online gaming industry.

First Quarter Financial Summary
in $000,000 Canadian Dollars except for shares and per share amounts
	For the Three Months Ended March 31,
	2017			2016
REVENUE	$	8.99		$	10.86
Adjusted EBITDA*		2.43			3.00
Transaction costs, Severance and restructure costs, Depreciation of equipment,
Amortization of intangibles and Stock-based compensation		3.01			3.48
OPERATING (LOSS)		(0.57	)		(0.48	)
FINANCING AND OTHER NON-OPERATING EXPENSES
Interest and accretion, Changes in value of long-term debt, Foreign exchange		4.18			(2.04	)
(LOSS)/INCOME, CONTINUING OPERATIONS, BEFORE INCOME TAX		(4.75	)		1.56
NET (LOSS)/INCOME, CONTINUING OPERATIONS		(4.29	)		1.82
NET INCOME/(LOSS), DISCONTINUED OPERATIONS		0.01			(0.00	)
TOTAL NET LOSS/(INCOME) FOR THE PERIOD	$	(4.28	)	$	1.81
Basic and diluted loss/(income) per share, continuing operations	$	(0.02	)	$	0.01
Basic and diluted income/(loss) per share, discontinued operations	$	0.00		$	(0.00	)
Weighted average number of shares: basic and diluted	180,668,880			170,196,193
*see Non-IFRS measure below

Tangelo Q1-2017 results can be found on its website (www.tangelo.com) or SEDAR (www.sedar.com).

James Lanthier, Chief Executive Officer of Tangelo, commented:

"In Q1-2017, our revenues experienced an initial dip. Revenues, however, recovered near the end of the quarter and continue to trend positively into Q2. Average monthly paying users in the quarter followed a similar seasonal pattern, declining from approximately 59,000 to 56,000.

"While Adjusted EBITDA decreased in tandem with revenue due to seasonality, Tangelo continued to enjoy margins, with an Adjusted EBITDA margin of 27% due to the operating efficiency gains realized in 2016.

"The Company continues to make progress towards the ultimate goal of a transaction that will improve the Company's capital structure and benefit all stakeholders. The Company will update the market when or if there are material developments."

Vicenc Marti, President of Tangelo, commented:

"As part of its ongoing efforts to enhance its product portfolio and accelerate the cadence of new content and pace of migration, Tangelo is fortunate to have added two very experienced product and technology executives in Adalberto Bruno and Eli Atlas. Adalberto brings to Tangelo extremely valuable operating systems experience from Marmalade and Electronic Arts, and Eli is the second senior executive from industry leading Playtika to join Tangelo after Dvir Ackerman came on board a year ago. I am pleased to lead this all-star team of product and technology experts at Tangelo who will strive to place the company in a unique position to profit from the industry's anticipated growth phase."

By the end of Q3-2017, we expect to have completed the conversion to Unity of games representing approximately 70% of the revenue of Tangelo Spain. By the end of Q4, we expect to release a new mobile-first Mundijuegos App for the Spanish-speaking market that Tangelo has traditionally led in desktop and now expects to continue to lead in mobile. This suite of games, containing games across the slots, bingo, and video bingo categories will offer our loyal Mundijuegos customers a world class mobile experience. Additionally, we expect to release two additional mobile-first apps for the English-speaking market by the end of 2017.

Financial Results and Non-IFRS Measures

The Company has included certain Non-IFRS performance measures, namely EBITDA and adjusted EBITDA, within this press release. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, we and certain investors and securities analysts use this information to evaluate the Company's performance and ability to generate cash, profits and meet financial commitments. These Non-IFRS measures do not have any standardized meaning under IFRS and therefore may not be comparable to similar measures presented by other issuers. These Non-IFRS measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA is defined as "Earnings Before Interest, Tax, Depreciation and Amortization". Adjusted EBITDA adjusts EBTIDA for due diligence and transaction costs and restructure and severance expenses as these are generally non-recurring. The Company removes stock-based compensation in calculating Adjusted EBITDA as it is a non-cash expense that can vary significantly depending on the timing of option grants. EBITDA does not include the discontinued operations of Vast. The following tables provide a reconciliation to Operating Loss/Income on the Statements of Consolidated Income and Comprehensive Loss for the three months ended March 31, 2017 and 2016 as reported in the Company's interim financial statements.

Adjusted EBITDA - Consolidated

		For the three months ended
		March 31, 2017			March 31, 2016
Operating loss, in 000,000's		$	(0.57	)	$	(0.48	)
Add back:
	Due diligence and transaction costs		0.05			0.12
	Restructure and severance		0.05			0.15
	Depreciation of equipment		0.04			0.03
	Amortization of intangibles		2.83			2.96
	Stock-based compensation		0.03			0.22
Adjusted EBITDA		$	2.43		$	3.00

About Tangelo

Tangelo Games Corp., the parent company of Tangelo Israel and Tangelo Spain, is a developer of social and mobile gaming for desktop, iOS and Android platforms. Tangelo Israel and Tangelo Spain design, develop and distribute their top ranked social casino-themed games within online social networks (such as Facebook) and mobile platforms (such as Android and iPhone). All of the Tangelo Israel and Tangelo Spain games are free to play and generate revenue primarily through the in-game sale of virtual coins.

Caution Regarding Forward-Looking Information:

Certain statements in this press release may constitute "forward looking statements" which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. When used in this press release, such statements may use such words as "may", "will", expect", "believe", "plan" and other similar terminology. These statements include, but are not limited to, statements with respect to the future business and operations of the Company, the ability of the Company to release new and successful games, the financial results of the Company and its subsidiaries, negotiations with the Company's lenders to extend or amend terms of the credit facility, the potential to enter into a strategic or financing transaction with a third party or receive approval from the Company's lenders to enter into such transaction, and the future prospects of the Company. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. The forward-looking statements involve a number of risks and uncertainties. These risks and uncertainties include, but are not limited to, general economic, market or business conditions and future developments in the sectors of the economy in which the businesses of Tangelo operate. The foregoing list of factors is not exhaustive. Please see the Company's short form prospectus dated March 27, 2015, the Company's Annual Information Form dated November 11, 2015 and other documents available under the Company's profile on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward-looking statements, whether a result of new information, future results or otherwise, except as required by law.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.