Blue Star Regulatory News (BLU)

7 April 2022

Blue Star Capital plc

("Blue Star" or the "Company")

Dynasty Gaming & Media new partnership agreements

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, provides an update in respect of its investee company, Dynasty Gaming & Media Pte Ltd ("Dynasty").

Dynasty, a leading mass-market Esports Portal Management (EPM) Platform, has secured three additional multi-year partnership agreements with large-scale organisations.

Under the first partnership agreement with Malaysia's leading telecoms operator, a Dynasty-built and managed platform was launched to millions of potential customers in mid-February and has already experienced significant registered and paying user traction, despite still being in its preliminary stages.

The second partnership agreement has been signed with New Zealand's largest telco, which enjoys a dominant market position and premium brand presence. Finally, the third multi-year agreement has been secured with a market-leading Indian group that operates within the digital payments, sports, and media industries. Under the latter agreement, Dynasty's platform will have access to the 330 million customer base of the Indian group and will see the unveiling of its NFT Marketplace, now integrated within Dynasty's platform ecosystem solution. Dynasty expects both platforms to launch within this current quarter.

Significantly, the new partnership agreements contain both fixed licence fees and managed services revenue share. While Dynasty's initial commercial model was based on collecting monthly licence fees over a minimum 24-month contract - a typical 'SaaS' model, moving forward, all agreements will see Dynasty supporting its partners with a genuine managed service solution. Dynasty will provide dedicated in-country resources, working exclusively with their partners in all areas of engagement and monetisation, to help fully maximise commercial outcomes. Under the new hybrid model, Dynasty enjoys a significant portion of all platform revenue generated, in addition to licence fees. The Company expects that revenue share will contribute more than 85% of its overall revenue mix within the next 12 months.

To further support its growing portfolio of partners, Dynasty has recently moved into a new state-of-the-art Global Development Centre in the heart of Kuala Lumpur's tech hub (KLEC), where it will continue to develop its product offering to incorporate additional high-growth revenue streams such as Play-to-Earn Gaming (P2E), Web 3.0, and AI Learning & Academy.

Matt Lodge, Dynasty's Chief Executive Officer, commented that: "It has been an incredibly exciting and productive time for the business. The global gaming market was valued at more than £150 billion in 2021 and is expected to grow to around £260 billion per annum within the next 5 years. There are now more than 2.7 billion gamers globally, with gaming overtaking social media as the largest consumption of screen time in most markets."

"Dynasty has invested strongly in truly world-class people and technology during these past 12 months and by enabling our partners to participate within this booming and hugely valuable industry to become the default "Home of Gamers" in their respective markets, Dynasty is now well positioned for future growth."

"With regards to a potential listing, we remain open to all options but are not currently tied to any one specific direction or timeline. We are continuing ongoing discussions that would potentially provide a different outcome to an IPO. Our board and hardworking team will continue to act on the best interests of our shareholders."

Derek Lew, Chairman of Blue Star Capital said that: "I am thrilled to see the ongoing progress being made by Matt and his talented team at Dynasty. The securing of these agreements demonstrate the team are executing their strategy and reinforce our belief of the growth opportunities that lie ahead for Dynasty. From a Blue Star perspective, I am also particularly pleased that they have numerous options open in terms of how they continue to scale the business globally."

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About Blue Star

Blue Star is an investing company with a focus on new technologies. Blue Star's investments include SatoshiPay Limited, a payments business using blockchain technology; 6 early-stage to mid-level esports companies, including Guild eSports plc, a global eSports business headquartered in London whose lead investor is David Beckham and Dynasty eSports Pte Ltd., an eSports platform with a mission to become the largest eSports franchise in Asia; Leaf Mobile Inc., a mobile leading free-to-play mobile games group; NFT Investments plc, a company that engages, partners, incubates and develops non-fungible tokens; and Sthaler Limited, an identity and payments technology business which enables a consumer to identify themselves and pay using just their finger.

About Dynasty Gaming & Media

Dynasty has created a leading mass-market Esports Portal Management(EPM) Platform, seamlessly combining community, competition, player engagement and monetisation. The platform gives their B2B partners a fully white-labelled Dynasty EPM solution allowing them to harness multiple ecosystem functionalities as seen in platforms such as Twitch, Battlefy, Discord, and Steam, all under one roof thus providing customers with an engaging single destination for all gaming and esports needs

Forward looking statement disclaimer

Certain statements made in this announcement are forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company's current expectations, estimates, and projections about its industry; its beliefs; and assumptions. Words such as 'anticipates,' 'expects,' 'intends,' 'plans,' 'believes,' 'seeks,' 'estimates,' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and other factors, some of which are beyond the Company's control, are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. The Company cautions shareholders and prospective shareholder holders not to place undue reliance on these forward-looking statements, which reflect the view of the Company only as of the date of this announcement. The forward-looking statements made in this announcement relate only to events as of the date on which the statements are made. The Company will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.