ANGUILLA, BRITISH WEST INDIES--(Marketwired - Jun 30, 2016) - Shoal Games Ltd. (TSX VENTURE:SGW)(SGLDF) http://www.shoalgames.com ("the Company"), announces that it will be offering rights (the "Offering") to holders of its common shares (the "Common Shares") of record at the close of business on July 5, 2016 (the "Record Date") expiring October 11, 2016 ("Expiry Date"). The Offering will be made to all Company shareholders resident in Canada (the "Qualified Jurisdiction"). The Offering notice and circular have been accepted for filing by the TSX Venture Exchange.

Shareholders of record on the Record Date will receive one right (a "Right") for each Common Share held. Ten Rights plus the sum of $0.60 (the "Subscription Price") will entitle the holder to subscribe for one Common Share (a "Rights Share"). The Subscription Price will escalate during the term of the Offering. Holders of Rights who subscribe for Rights Shares on or after August 16, 2016 will be required to pay a Subscription Price of $0.65 per Rights Share. Holders of Rights who subscribe for Rights Shares on or after September 16, 2016 and prior to the Expiry Time will be required to pay a Subscription Price of $0.70 per Rights Share. Rights will be evidenced by transferable rights certificates (each, a "Rights Certificate"). The Rights expire at 4:00 p.m. (EST) (the "Expiry Time") on the Expiry Date, October 11, 2016, after which time unexercised Rights will be void and of no value. Shareholders who fully exercise their Rights are entitled to subscribe pro rata for additional Common Shares, if available, that were not subscribed for initially on or before the Expiry Time. The maximum number of common shares issuable pursuant to the Offering will be 5,953,564. The completion of the Offering is not subject to the Company receiving any minimum amount of subscriptions. There is no standby commitment for the purchase of Rights Shares that are available to be purchased, but are not subscribed for, at the Expiry Time of the Offering.

The Company's Common Shares and Rights Shares are qualified investments for TFSA accounts.

Proceeds from the Offering will be used to increase SGL's marketing expenditures with a view to increasing the number of downloads and installs of Trophy Bingo, its innovative social bingo game. Proceeds may also be used for game development and player acquisition for Garfield's Bingo. The Rights will be posted for trading on the TSX Venture Exchange and will trade under the symbol "SGW.RT". Trading of the Rights is expected to commence on July 22, 2016 and continue until 12:00 noon EST on October 11, 2016. A rights notice and offering circular, together with Rights Certificates, will be mailed to eligible shareholders after the Record Date. Eligible registered shareholders wishing to exercise their Rights must forward the completed Rights Certificates, along with the applicable funds to Computershare Investor Services Inc. ("Computershare") by the Expiry Date. Shareholders who own their shares through an intermediary, such as a bank, trust company, securities dealer or broker, will receive materials and instructions for the sale or exercise of Rights from their intermediary. Rights issued to shareholders who are resident outside of the Qualified Jurisdiction ("Shareholders Requiring Exemptions" will be issued to and held by Computershare for the benefit of those shareholders. Shareholders Requiring Exemptions will be given until October 1, 2016 to claim their Rights Certificate by satisfying the Company that the issue of Rights Shares is permissible in their jurisdiction of residence. Following October 1, 2016 Computershare will attempt to sell all Rights allocable to Shareholders Requiring Exemptions that have not been exercised and will deliver the proceeds of any such sales pro rata to the Shareholders Requiring Exemptions