New facilities replace the Company's Royal Bank of Canada facility and restore its capacity to invest in user acquisition

VANCOUVER, BC, Oct. 15, 2026 /CNW/ -- East Side Games Group Inc. (TSX: EAGR) (OTC: EAGRF) ("ESGG" or the "Company"), a leading developer and publisher of free-to-play mobile games, is pleased to provide additional details on its new credit facilities with National Bank of Canada ("NBC") and Export Development Canada ("EDC"), further to its news release dated October 9, 2026.

The new facilities (together, the "New Facilities") consist of: (i) a C$3 million revolving line of credit with NBC bearing interest at prime plus 1%, and up to C$3.5M in term loans backed by tax credits bearing interest at prime plus 1.25% maturing when tax credits are received and (ii) a US$4 million term loan with EDC. The amounts that can be drawn on from NBC are limited by estimates of current year IDTMC (75% of accrual) as well as upcoming TSG settlement payments ($500k a quarter). The Company's credit facility with Royal Bank of Canada ("RBC") has been repaid in full.

At closing, the Company had drawn approximately C$3.2 million under the New Facilities with C$1 million cash on hand, and approximately C$6.4 million remaining available between all combined facilities. The New Facilities are non-dilutive with no shares, warrants or other equity securities issued to the lenders.

Restoring Investment in User Acquisition

User acquisition ("UA") is a key driver of revenue growth in the Company's games. Year to date, limited access to capital has held the Company's UA investment well below the levels at which it has historically operated, which has weighed on its financial results. The New Facilities significantly ease that constraint. With the capacity and flexibility to return UA spend to normalized levels, the Company expects the benefit to begin appearing in its results in the fourth quarter of 2026 and to build in the periods that follow.

Because UA investment began increasing only in Mid-October, the Company's third quarter results, which it expects to report on or about November 15, 2026, will reflect the capital constraints that applied for most of the period. The Company expects the fourth quarter to be the first full quarter of UA investment at near-normalized levels.

While the Company continues to expect to fund the development of new titles from operating cash flow, the New Facilities provide additional flexibility to invest in new titles should the need arise.

Balance Sheet

With the RBC facility repaid in full, the Company's only debt other than the New Facilities is C$5.6 million of loans from insiders. These are long-term loans held by insiders whose interests are aligned with those of the Company's shareholders.

"For most of this year, access to capital rather than opportunity set the limit on what we could invest in our games, and our results showed it. With National Bank and EDC as partners and our RBC facility repaid in full, we can return user acquisition to normalized levels, and we expect that investment to show in our results beginning in the fourth quarter," said Jason Bailey, Chief Executive Officer of ESGG.

ABOUT EAST SIDE GAMES GROUP

Additional information about the Company is available under its profile on SEDAR+ at www.sedarplus.ca.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the availability of the New Facilities, the timing and extent of increases in user acquisition spend, the expected improvement in the Company's financial results in the fourth quarter of 2026 and beyond, the funding and development of new titles, and the continued support of the Company's insider lenders. Forward-looking information is based on management's current assumptions and is subject to risks and uncertainties that could cause actual results to differ materially, including reduced borrowing availability, failure to comply with covenants, changes in interest rates, lower than expected returns on user acquisition, delays in game development, and the other risks described in the Company's most recent annual information form and management's discussion and analysis, available on SEDAR+. Readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update it except as required by applicable law.

SOURCE East Side Games Group Inc.