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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Golden Matrix Reports Net Income of $438,802 on Revenues of $876,754 for Second Fiscal Quarter of 2020

March 3, 2020 GMT

Company Now Services 310 Gaming Operators and More Than Two Million Registered Users

LAS VEGAS, March 03, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Golden Matrix Group Inc. (OTCPK: GMGI), a technology-driven company that designs and develops social gaming platforms, systems and gaming content, today announced that for the second fiscal quarter ended January 31, 2020, the company recorded net income of $438,802 on revenues of $876,754. This compares with net income of $421,791 on revenues of $713,542 in like year-ago quarter.

Net income in the second fiscal quarter of 2020 was negatively impacted by a non-cash amortization expense of $264,345 related to stock options granted in the company’s 2018 Equity Incentive Plan. This compares with a charge of $56,833 for the same item in fiscal Q2 2019.

For the first six months ended January 31, 2020, Golden Matrix reported net income of $984,690 on revenues of $1,758,599, compared with net income of $753,790 on revenues of $1,352,237 in the like year-ago period.

Golden Matrix revenues are derived primarily from licensing fees received from gaming operators located in the Asia Pacific (APAC) region and integrated with the company’s state-of-the-art GM-X platform. Currently there are 310 active operators and more than two million registered users across all gaming operator/GM-X platforms.

“We are pleased with this continuation of strong quarterly results generated by our success in servicing the robust Asia-Pacific gaming markets, the largest in the world,” said Golden Matrix CEO Brian Goodman. “Going forward, we expect the company’s market share to continue to improve. Additionally, the company is now positioned to expand operations and plans to enter new gaming-related markets, which will significantly increase revenues and profitability in 2020 and beyond.

“While other companies may have experienced slowdowns as a result of the Coronavirus, our business has remained relatively unaffected. This development, we believe, is likely a result of the absence of person-to-person contact inherent in online gaming activity.”

Mr. Goodman noted that total assets as of January 31, 2020 increased to $3,717,558, up 24% from $3,005,050 at fiscal year-end 2019. Cash and cash equivalents totaled $1,856,505.

For additional information on Golden Matrix’s Q2 2020 performance, please refer to the Company’s 10-Q filing at https://www.otcmarkets.com/stock/GMGI/disclosure or www.sec.gov.

A summary of the Company’s performance and highlights can be found at: http://goldenmatrix.com/highlights/Q2FY20.pdf

About Golden Matrix

Golden Matrix Group, based in Las Vegas NV, is an established gaming technology company that develops and owns online gaming IP and builds configurable and scalable white-label social gaming platforms for its international customers, located primarily in the Asia Pacific region. The gaming IP includes tools for marketing, acquisition, retention and monetization of users. The company’s platform can be accessed through both desktop and mobile applications.

Our sophisticated software automatically declines any gaming or redemption requests from within the United States, in strict compliance with current US law.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company’s business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company’s periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.

Golden Matrix Group, Inc. Consolidated Balance Sheets As of As of Jan 31,2020 Jul 31,2019 (Unaudited) (Audited) ------------ ------------ ASSETS ------------------------------------------------------------------------------------ ------------ ------------ Current assets: ------------------------------------------------------------------------------------ ------------ ------------ Cash and cash equivalents 1,856,505 1,731,095 ------------------------------------------------------------------------------------ ------------ ------------ Account receivable, net 791,340 264,558 ------------------------------------------------------------------------------------ ------------ ------------ Account receivable-RP 1,069,713 1,009,397 ------------------------------------------------------------------------------------ ------------ ------------ Total current assets 3,717,558 3,005,050 ------------------------------------------------------------------------------------ ------------ ------------ Total Assets 3,717,558 3,005,050 ------------------------------------------------------------------------------------ ------------ ------------ LIABILITIES AND SHAREHOLDERS EQUITY ------------------------------------------------------------------------------------ ------------ ------------ Current liabilities: ------------------------------------------------------------------------------------ ------------ ------------ Accounts payable and accrued liabilities 25,621 41,104 ------------------------------------------------------------------------------------ ------------ ------------ Accounts payable-related party 660,682 526,541 ------------------------------------------------------------------------------------ ------------ ------------ Advance from shareholder 1,000 1,000 ------------------------------------------------------------------------------------ ------------ ------------ Accrued interest 41,964 24,510 ------------------------------------------------------------------------------------ ------------ ------------ Settlement payable -related parties 290,000 145,000 ------------------------------------------------------------------------------------ ------------ ------------ Convertible notes payable, net of discount 30,000 30,000 ------------------------------------------------------------------------------------ ------------ ------------ Convertible notes payable, net of discount-in default 10,000 10,000 ------------------------------------------------------------------------------------ ------------ ------------ Promissory Note - related party 174,254 1,033,567 ------------------------------------------------------------------------------------ ------------ ------------ Derivative liabilities note conversion feature 15,000 15,000 ------------------------------------------------------------------------------------ ------------ ------------ Total Current liabilities 1,248,521 1,826,722 ------------------------------------------------------------------------------------ ------------ ------------ Settlement Payable related parties long-term: - 145,000 ------------------------------------------------------------------------------------ ------------ ------------ Total Non-Current liabilities - 145,000 ------------------------------------------------------------------------------------ ------------ ------------ TOTAL LIABILITIES 1,248,521 1,971,722 ------------------------------------------------------------------------------------ ------------ ------------ Shareholder’s equity: ------------------------------------------------------------------------------------ ------------ ------------ Preferred stock, Series A: $0.00001 par value; 19,999,000 shares authorized, none - - outstanding ------------------------------------------------------------------------------------ ------------ ------------ Preferred stock, Series B: $0.00001 par value; 1000 shares authorized, 1000 and 1000 - - shares issued and outstanding, respectively ------------------------------------------------------------------------------------ ------------ ------------ Common stock: $0.00001 par value; 6,000,000,000 shares authorized; 2,845,318,757 and 28,453 28,453 2,845,318,757 shares issued and outstanding respectively ------------------------------------------------------------------------------------ ------------ ------------ Additional paid in capital 27,894,312 27,443,293 ------------------------------------------------------------------------------------ ------------ ------------ Accumulated other comprehensive loss (683) (683) ------------------------------------------------------------------------------------ ------------ ------------ Retained earnings (accumulated deficit) (25,453,045) (26,437,735) ------------------------------------------------------------------------------------ ------------ ------------ Total shareholders’ equity 2,469,037 1,033,328 ------------------------------------------------------------------------------------ ------------ ------------ TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY 3,717,558 3,005,050 ------------------------------------------------------------------------------------ ------------ ------------

Golden Matrix Group, Inc. Consolidated Statements of Operations Unaudited -------------------------------------------------------------------------------------------------------------- For the three months For the three months For the six months For the six months ended ended ended ended Jan-31-2020 Jan-31-2019 Jan-31-2020 Jan-31-2019 -------------------- -------------------- ------------------ ------------------------ Sales 308,507 2,119 670,783 2,752 Sales-Related Party 568,247 711,423 1,087,816 1,349,485 Cost of goods sold (25,031) (68,978) (57,224) (138,502) -------------------- -------------------- ------------------ ------------------------ Gross profit 851,723 644,564 1,701,375 1,213,735 Operating expenses G&A expenses 102,817 54,446 231,149 133,376 G&A expenses Related 33,000 48,940 66,000 88,240 Compensation expense -acquisition cost- - 67,963 - 84,082 related party Professional fees 8,129 9,237 26,944 30,068 Amortization expense 264,345 56,833 385,024 114,180 Total operating 408,291 237,419 709,117 449,946 expenses -------------------- -------------------- ------------------ ------------------------ Gain from operations 443,432 407,145 992,258 763,789 -------------------- -------------------- ------------------ ------------------------ Other income (expense) Interest expense (9,837) (202) (26,227) (7,994) Interest earned 9,373 - 18,659 - Gain (Loss) on - - - (106) extinguishment of debt Gain (Loss) on (4,166) 14,848 - (1,899) derivative liability -------------------- -------------------- ------------------ ------------------------ Total other income (4,630) 14,646 (7,568) (9,999) (expense) -------------------- -------------------- ------------------ ------------------------ Net income 438,802 421,791 984,690 753,790 -------------------- -------------------- ------------------ ------------------------ Per share information Basic, weighted number of common shares outstanding 2,845,318,757 2,835,318,757 2,845,318,757 2,787,644,985 Net profit per common 0.00 0.00 0.00 0.00 share-basic -------------------- -------------------- ------------------ ------------------------ Diluted weighted number of common shares outstanding 4,179,262,381 2,848,173,923 4,179,262,381 2,800,500,152 Net profit per common 0.00 0.00 0.00 0.00 share-diluted ----------------------- -------------------- -------------------- ------------------ ------------------------

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