[Nick Hargrave]

Just received the following note from the CEO, highlighting that they remain on course for breakeven by end Q2 23, and disclosing that they need c.C$12m of betting hendle to achieve breakeven, and are 25% of the way there in just under 3 months of active player acquisition. This continues to be a highly interesting ‘sleeper’ investment idea

Dear Luckbox partners and shareholders,

As we look forward into 2023, I want to extend my gratitude for your continued support for Real Luck Group. I also want to provide a year-end summary of the progress the company made in 2022 and share our 2023 goals.

Q4 Results and 2022 End of Year

We ended 2022 in a record-breaking month, with December’s results delivering on our 2022 promises and showing our 2023 potential. We always maintained we wouldn’t go to market until our product and platform were ready, and in August last year, thanks to a huge effort from the whole team, we reached that point; this enabled us to launch our player acquisition in earnest in October. We went from a virtual ‘standing start’ in Q3 2022 to over CAD$3 million in Global Betting Handle by the end of Q4. Not only is this encouraging, and a promising glimpse of our future growth potential, we also did all this despite turbulent market conditions and headwinds – further proof that this industry, and our approach, are capable of growth regardless of macroeconomic volatility, recession fears, global crises, and other negative headlines.

In the last three months, over two million bets were accepted and placed on the Luckbox platform and our casino portfolio grew to over 900 games. We also partnered with some of the biggest talent across the esports ecosystem, including Thunder Awaken; they made history for the South America region in DOTA 2’s most prolific tournament ‘The International’ and took our brand to Singapore where more than 1.7 million people watched the games.

Regarding our 2022 Key Performance Indicators (“KPIs”), our monthly revenue has grown 120% and our Total Player Deposits grew by a huge 420% since we first shared them in August. Since then, we have also disclosed even more KPIs with you such as our Global Betting Handle, First Time Depositors (“FTDs”) and Real Money Players (“RMPs). Moving forward we will continue to report these important operating statistics to help measure our progress.

2023

As we look forward into 2023, I want to provide more detail on our strategic direction. We have significantly improved the player experience of our platform, driven successful customer acquisition efforts in multiple regions globally, and delivered in all our three verticals (esports, online casino and sporting betting). This has been made possible by successfully overhauling our proprietary tech stack and as a result, we are now able to continue to apply our team’s online gaming expertise towards the continued scaling of our business in 2023. We believe 2023 will be the year that we will expand further and make an impact on our growing industry.

From a financial perspective, we’re already generating around 25% of the Global Betting Handle that we need to in order to be breakeven; that, in relation to the fact that we have only activated 20% of our player acquisition channels, gives us a high degree of confidence that we are on the right trajectory to attain profitability by the end of Q2 2023.

This year we’ll also be focusing on the development of our proprietary betting technology that will help position us as a true market leader, but also open up new global opportunities. I hope to be able to share more news soon, but this development will enable us to create a new B2B vertical within Real Luck Group and embed our revolutionary new products into the largest gaming and betting operators around the world.

Closing Remarks

In closing, we have been encouraged by our rapid player and handle growth in Q4 and reassured by our continued upward trajectory despite the current negative economic environment. I am confident that 2023 will see us take more steps towards becoming a truly successful global and recognized brand.

On behalf of all of us at Real Luck Group, I wish you and your families a lot of LUCK in 2023.

Yours,

Thomas Rosander, Chief Executive Officer