RESEARCH REPORTS

FUNDAMENTAL RESEARCH CORP INITIATES COVERAGE ON SHOAL GAMES LTD.

Initiating Coverage – A Unique Opportunity in the Mobile Games Business

Shoal Games Ltd. (“company”, “Shoal”, “SGW”) owns and operates Trophy Bingo – a free to play mobile bingo game launched worldwide in the third quarter of 2015. The company generates revenues through in-app purchases and advertising. Trophy Bingo has been downloaded over 325,000 times, and currently has 18,000+ Daily Active Users (“DAU”) and 92,000+ Monthly Active Users (“MAU”). The company has a strong management team, led by Mr. T.M. (Tarrnie) Williams – Ex President and CEO of Electronic Arts (Canada) Inc. (Nasdaq: EA). Shoal is the only publicly listed micro/small cap company in Canada offering investors the opportunity to participate in the growing mobile games market in the social casino segment.

FUNDAMENTAL RESEARCH CORP Q1 UPDATE ON SHOAL GAMES LTD.

Q1 Strong / Trophy Bingo Gaining Traction

Shoal Games Ltd. (“company”, “Shoal”, “SGW”) reported strong results in Q1-2016 (quarter ended March 31, 2016) this Monday. In Q1-2016, revenues grew by 34% QOQ to $110,559, up from $82,540 in Q4-2015. The full launch of Trophy Bingo was in Q3-2015. All of the Key Performance Indicators (“KPIs”) showed strong improvements. Daily Active Users (“DAUs”) increased from 13,870 in Q4-2015, to 18,122 in Q1-2016. The Monthly Gross Average Bookings per Paying User (“MGABPPU”) increased QOQ from $17.51 to $22.38. Player acquisition cost also dropped QOQ. All these metrics, we believe, clearly indicate that Trophy Bingo is gaining traction.