Tangelo  Negotiation Extension of Obligation to Lender

Toronto, December 30, 2016 – Tangelo Games Corp. (“Tangelo”; or the “Company”) (TSX-VENTURE: GEL) announced today that, in light of its ongoing discussions with certain strategic investors regarding a recapitalization of its balance sheet, it is negotiating an extension of its principal repayment obligations to its lender, Third Eye Capital Corporation(“TEC”). TEC has been involved in the Company discussions with third-party investors and has agreed to support a strategic transaction under appropriate terms.

The Company expects to enter into an amendment with TEC shortly and will update investors with any new developments and details regarding the extension.