Blue Star Regulatory News (BLU)

6 October 2020

Blue Star Capital plc

("Blue Star" or the "Company")

Dynasty Esports Investment Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, is pleased to provide the following update regarding the activities of its investee company Dynasty eSports Pte Ltd ("Dynasty").

During Q3 2020 Dynasty signed three separate SaaS agreements to provide its white-labelled platform to two esports franchise operators and to the largest telecoms carrier in the Middle East to launch a branded Dynasty platform in three of the region's key gaming and esports countries in November 2020.

These agreements are expected to provide contracted SaaS revenues for Dynasty of approximately US$2.8 million over the next year. In addition to the contract revenue, Dynasty is progressing a number of prospective platform partnerships which will, should they be signed, on current terms make Dynasty profitable at the operating level.

Dynasty's first partner platform has gone live in Malaysia with a soft launch of its proprietary EPM platform with the Malaysia eSports Federation (www.mesf.gg). Dynasty expects to further develop the platform in Q4 2020 delivering an enhanced tournament engine and a fully embedded e-commerce gaming shop that includes a partnership with Boost, Malaysia's largest eWallet. Significant promotional and marketing activities are expected to commence later this year.

As a result of the progress to date, it is the Dynasty's intention to strengthen the management team and board and conversations are ongoing with a number of experienced and successful esports executives from the region.

Blue Star currently owns 13 per cent of Dynasty and its stake is valued at £1.3m based on the company's most recent over-subscribed fundraise at approximately £10m. This valuation was prior to the signing of any SaaS Agreements and before the Malaysian eSports Federation platform went live.

Tony Fabrizi, CEO of Blue Star said, "Dynasty is making rapid progress and today's update confirms the significant value that's being created. Having secured a landmark contract win in Malaysia in May 2020, management has now secured another major contract in the Middle East and appear confident of continuing this strong progress as their esports platform gains traction internationally. We remain confident that Dynasty will become a sizeable business over the next few years and look forward to updating the market on its progress."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

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About Blue Star Capital plc

Blue Star is an investing company with a focus on new technologies. Blue Star's investments include a 27.7% holding in SatoshiPay, a payments business using blockchain technology; investments in 7 early stage esports companies with shareholdings ranging from 5.9% to 18% and a 0.9% investment in Sthaler, an identity and payments technology business which enables a consumer to identify themselves and pay using just their finger.

Forward Looking Statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', "should" ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect", ''will'' or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.