Update on eSport Portfolio

23 December 2020

Blue Star Capital plc

("Blue Star" or the "Company")

Update on eSport Portfolio

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 esports portfolio as well as its investee companies, The Drops Esports Inc ("The Drops") and Diemens Esports PTY Ltd ("Diemens").

Since making its initial £900,000 investment in six esports opportunities in November 2019, Blue Star has invested in total approximately £1,680,000 across seven companies. Follow on investments have been made in Guild Esports plc ("Guild"), Dynasty eSports Pte Ltd ("Dynasty") and most recently in FORMATION Esports SaaS ("Formation"). Based on the current valuation of Guild, which was admitted to the standard segment of the London Stock Exchange's main market on 2 October 2020, and the higher valuation achieved by Dynasty in its subsequent fund raises, Blue Star's esports portfolio is now valued at £3,715,890, showing an unrealised gain of £2,035,890 and an increase of approximately 120 per cent.

The Drops

Further to the announcement of 14 January 2020, in which it was announced that The Drops had entered into a letter of intent with Fibresources Corporation ("Fibresources"), whereby Fibresources stated its intention to acquire all of the issued, and to be issued, share capital of The Drops. The Company has been informed that Fibresources did not complete the acquisition. Blue Star has invested approximately £147,000 in The Drops and holds an interest of 13.6 per cent. in the company.

Diemens

As per the announcement of 3 February 2020, Diemens announced its intention to merge with Critical Hit Entertainment PTY Ltd ("CHE"). The Company has been advised by Diemens that the deal with CHE did not complete. Blue Star has invested £133,000 in Diemens and holds an interest of 13.3 per cent. in the company.

The Company awaits updates from its further esport investee companies being Formation, Googly Esports plc and The Dibs Esport Corp and it will update the market further in due course.

Tony Fabrizi, CEO of Blue Star commented, "the overall performance from our portfolio approach is showing a significant return in year one. Although today's news from The Drops and Diemens is disappointing, both companies continue to explore opportunities to build their respective businesses. While the overall performance from our portfolio approach is showing a significant return in year one and while the early-stage nature of our esports portfolio will lead to some disappointments, the Board remains highly optimistic regarding the future performance of the Company's overall portfolio."

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

About Blue Star Capital

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 6 early stage esports companies with shareholdings ranging from 5.9% to 13.6% 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 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.