Dynasty eSports Update

15 April 2021

Blue Star Capital plc

("Blue Star" or the "Company")

Dynasty eSports Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, provides an update in respect of its investee company Dynasty eSports Pte Ltd ("Dynasty").

The Company has been advised Dynasty achieved its first monthly profit on an operating basis in January 2021. While the company has continued to strategically invest in platform development and building high quality teams, increasing monthly cash inflow means Dynasty still has approximately 60 per cent. of the proceeds remaining from the fundraising round conducted in August 2020.

The Company has also been informed that Dynasty expects to shortly conclude a further round of fundraising in which it is targeting to raise approximately US$5 million, based on a pre-money valuation of US$45 million. This represents a material increase in Dynasty's valuation based on its previous fundraising round. Under the terms of the Company's initial investment, Blue Star retains anti-dilution rights and is considering exercising these rights to participate in Dynasty's fundraising round. The Company is in discussion with brokers and warrant holders in respect of raising further investment funds.

The proceeds of Dynasty's fundraising is expected to be used to provide it with the ability to accelerate growth and to seek to convert a greater number of pipeline opportunities.

Blue Star currently holds approximately 13.0 per cent of the issued share capital of Dynasty, having invested £428,000 to date, which previously valued Blue Star's stake at approximately £1.3 million based on Dynasty's valuation at its last fundraising round in August 2020 at approximately £10 million. In the event of the completion of the latest fundraising round, the Company anticipates a significant increase in the valuation of its investment.

This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

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