Year End Report – 2013

FINANCIAL INFORMATION

A summary profit or loss statement for the financial year – including information on any significant extraordinary incomes and expenses, is attached. A summary balance sheet as of year end is attached. Cash-flow statement for the financial year is attached. Consolidated Group Financials for the year Jan to Dec 2013:

• Turnover: 323,986 Euro (2012: 18,307 Euro, improvement of 1669.74%)
• Loss after taxation: -1,646,428 Euro (2012: -741,980 Euro, worsening of 121.90%)
• Earnings per share: -0.039 Euro* (2012: -0.0217 Euro, worsening of 79.72%)
• Financials For Q4 – Angler Gaming plc :
• Turnover: nil Euro
• Loss after taxation: -46,105 Euro
• Earnings per share: -0.001 Euro
• Financials for the year Jan to Dec 2013 – Angler Gaming plc:
• Turnover: nil Euro
• Loss after taxation: -298,051 Euro
• Earnings per share: -0.007 Euro*
• Loss divided with 42,214,957 shares as at 31st December 2013.

HIGHLIGHTS OF Q4 2013

• Deposits increased by just over 63% compared to Q3
• The number of active players increased by 69% compared to Q3
• Net Game Win (real money wagers) increased by close to 128% compared to Q3
• Bonus costs remained similar to Q3 despite the increase in activity and campaigns Launched new B2B brand, with more in the pipeline

REVIEW OF OPERATIONS AND ACTIVITIES FOR 2013

• Activities in subsidiary, Starfish NV, whilst not yet profitable, started to produce revenue.
• Costs for 2013 remained under control at 5% over budget, €1,294,834 (actual) vs €1,226,145 (budgeted).
• Revenue remained below forecasted numbers throughout the year, with the exception of November, totalling €323,986 (actual), which was 35% less than the projected figures of €505,500 (budgeted). Several factors contributed to the lack of growth and revenue but the primary ones were marketing restrictions in key markets, a strict marketing budget, loss of B2B partners due to new policies and market restrictions. Added to this were high bonus costs and a number of big winners, all of which greatly affected results.
• Starfish launched the website Lucky31.com towards the very end of Q1 and it surpassed all the other proprietary brands in every aspect except for Game Win.
• Starfish added new game suppliers, payment suppliers and products throughout the year, including Live Games from both Actual Gaming and Microgaming. Beyond that, also launched several enhancements and features such as a loyalty program and mobile websites for all brands.

SIGNIFICANT EVENTS AFTER 2013 YEAR-END

Angler Chairman attended ICE Gaming Exhibition in London – first week of February – and had a number of meetings with operators who are exploring a white label possibility with Starfish.

COMMENTS ON 2014 OUTLOOK SNAPSHOT OF Q1 2014.

• Starfish will continue to seek out B2B partnerships but will focus primarily on medium to large partners.
• Further changes to promotional campaigns will be made with a focus upon players seeking entertainment rather than just bonuses.
• Starfish will add at least one new game supplier
• Exploring adding additional product verticals such as Sportsbook and Bingo.
• Budgets for 2014 have been approved, adjusted to actual costs and reviewed revenue projections accounting for the performance of Q3 and Q4 and existing B2B partnerships.

COMMENTS FROM HANS DAHLGREN, CEO STARFISH MEDIA:

“The increase of a number of metrics during Q4 has had a positive impact on both the bottom line as well as the morale of the team. The increase is largely contributed to changes in promotional structures and marketing channels as well as a growing base of loyal players. The B2B brand that launched during Q4 unfortunately had to postpone marketing efforts due to 3rd party issues, but is now expected to start delivering results during Q1 2014. Starfish continues to actively pursue additional B2Bs and new revenue streams in order to increase revenue without significantly increasing costs. As with all start-ups, Starfish had a long year with a number of ups and downs, but during the last two quarters, Q4 in particular, we saw the business stabilizing.”

COMMENTS FROM DAVID GRAY – CHAIRMAN ANGLER GAMING PLC

2013 proved to be a more difficult trading environment than was envisaged. A different approach to player promotions and marketing have slowly proved to be a more effective strategy and subsequently Starfish’s dependance upon the parent Angler is reducing. A great deal has been achieved by the Starfish development team and their product is more attractive than was the case a year ago. A recently launched B2B brand has heightened expectations of increased business development and cash-flows, however through no fault of Starfish this has been slow to produce results due to 3rd party integration problems. Other B2B brands are currently being negotiated and should produce positive cash flow in the near/medium term. Costs continue to be monitored and new routes for cost savings are continually being explored. The Starfish subsidiary should be in positive cash flow position by the end of 2014. PROPOSED APPROPRIATION OF RETAINED EARNINGS The Board recommended not to declare any dividends for the financial year 2013.