Elray Gaming entered into a binding Letter of Intent with Golden Match

Golden Match is an investment holding company. Its principal business activity is to hold a profit share agreement with a VIP Room Gaming Promoter, the terms of which they receive 80% of the profit stream from the Promoters. The Promoter currently participates in the promotion of many major luxury VIP gaming facilities in Macao, China, the largest gaming market in the world, which include the MGM, Venetian, Wynn, Galaxy and City of Dreams.

VIP gaming operations in Macao consist of VIP rooms that offer exclusively high-limit baccarat table games. Baccarat is the largest source of gaming revenue in Macao. Gaming Promoters in Macao have historically maintained the majority of VIP customer relationships. The Promoters secure VIP rooms through agreements in which they receive either a commission on turnover or a split of the casino net gaming win or loss on a pre-gaming tax basis.

The letter of intent includes:

Golden Match is a company that has negotiated a profit sharing agreement with Cali Promocao de Jogos Sociedade Unipessoal (CALI), a company duly incorporated under the laws of the Special Administrative Region of Macao, and promotes Casinos in Macao SAR pursuant to a license issued by the Gaming Inspection and Coordination of Bureau of the Government of Macao SAR Over the past 5 months, CALI has generated approximately us$ 17 million profit after tax.

The agreements that Cali currently has in place are with the MGM Grand Macao, the Venetian, Wynn, Galaxy and City of Dreams. Lao Sio I will be appointed Chairman of the Board of Directors with Brian Goodman remaining as CEO. Following the completion of the Acquisition Agreement, Elray will initially raise working capital to fund growth.

On signature of the letter of intent, Lao Sio I commented, "I am excited by this development as it enables us to take advantage of exciting growth opportunities that are available for expansion that a privately held company is unable to do. Macao has become the leading gaming center world wide, new casinos are opening, existing ones are expanding with more and more people visiting Macao,  we will now be able to pursue these opportunities."

Brian Goodman, current CEO stated that, "Elray will now be well positioned to develop and grow as a gaming entity internationally. The Macao opportunity together with the US listing will enable the company to raise growth capital, acquire other promoters in Macao as well as in other jurisdictions and negotiate more favorable terms with casinos due to its heightened profile. All in all a good result for Elray stockholders."