RED DEER, ALBERTA -- (Marketwire) -- 11/12/12 -- Gamehost Inc. (TSX:GH)

Management and Directors of Gamehost Inc. ("Gamehost", the "Company", the "Corporation", "Our") are pleased to present results for the nine months ended September 30, 2012 (the "Period") and three months ended September 30, 2012 (the "Quarter").

Happy Dance

Total operating revenues for the Quarter grew by 6.6% to $18.8 million from $17.6 in the same quarter of 2011. Earnings before interest, taxes, depreciation and amortization ("EBITDA") that is attributable to owners of the Company ("EBITDA to Owners") grew by $0.8 million or 10.6% to $8.3 million for the Quarter compared to $7.5 million for the same quarter in 2011. EBITDA to Owners margin percentage rose by 170 basis points to 46.5% from 44.8% in the Quarter compared to one year earlier. Encompassing the summer vacation season, Q3 is typically a softer quarter for Gamehost compared to the prior Q2 with revenues lower on average by 5%. For Q3 2012 this pattern resulted in a smaller decline of only 2%. Like the good folk enjoying a night of merriment in one of our clubs, we're doing our own version of dancing in the boardroom over these results.

Hello, Our Name Is Gamehost And We're A Hoarder

Yes it's true. We are hoarding cash for the purposes of paying taxes, reducing debt and repurchasing Company stock. While cash balances are $0.5 million less than at the start of the year, we have used surplus cash to repurchase $2.0 million in Company stock or 164,400 shares, reduce our operating line to $nil from $4.0 million and reduce our term debt by a further $1.7 million. Cash flows continue to exceed our earlier projections and a $3.0 million increase to our operating line has been secured for added cushion. We are on track to comfortably meet our estimated tax payment obligations next year which include a balloon payment of $8.5 million for current year and deferred income taxes.

Risk And Reward

Holders of the Company's debentures continued to show appetite for higher returns offered by Gamehost stock dividends despite the added security offered by the debentures. During the Quarter, $4.8 million face value of debentures were presented for conversion to 0.5 million common shares leaving $33.5 million of the original $55.0 million debenture issue outstanding at the end of the Period. Since the beginning of the year $16.7 million in face value debentures have been converted to 1.6 million common shares of Gamehost.

Remembering Mr. Rogers

"Who are the people in your neighbourhood?" Our Calgary neighbours are the residents and employees who live and work around and in closest proximity to our southeast Deerfoot Inn & Casino. Southeast Calgary continues to boast the fastest most diversified growth in the city. The spin-offs of this growth pattern have resulted in above average year over year revenue growth at Deerfoot of 8.7% and a growing share of the total Calgary casino market. Continuing on this note, we were excited to learn of Imperial Oil's plans to relocate its Calgary headquarters to a campus-style office complex in the southeast suburban office park known as Quarry Park. While suburban office parks are not a new thing, this marks the first time an industry oil giant has ventured away from Calgary's downtown core. Imperial Oil's new offices will be located a skip and a jump from our Deerfoot Inn & Casino and will eventually house some 3,000 employees. This announcement is bound to accelerate the residential growth in nearby communities. Relocation for Imperial Oil employees will begin in mid-2014 and we look forward to welcoming our new neighbours and their out-of-town meeting guests to our hotel for years to come. Our northern casino properties in Fort McMurray and Grande Prairie get to cast a wider net over their neighbors. Operating with monopolistic or near monopolistic conditions everyone in these two municipalities is our neighbor when it comes to counting customers.

It was a great Quarter. Thank you for your unshaken faith in management and your investment in Gamehost Inc.

                                                                            
Condensed consolidated interim statement of profit and                      
 comprehensive income                                                       
                                                                            
In Canadian dollars          (unaudited)                 (unaudited)        
                    --------------------------------------------------------
                          nine months ended           three months ended    
                             September 30                September 30       
                    --------------------------------------------------------
                             2012          2011          2012          2011 
                    --------------------------------------------------------
                                                                            
Operating revenue    $ 56,762,112  $ 53,031,656  $ 18,776,562  $ 17,612,172 
Cost of sales                                                               
  Other               (28,338,764)  (27,568,680)   (9,381,135)   (9,206,339)
  Depreciation         (1,617,599)   (1,764,484)     (545,389)     (587,843)
                    --------------------------------------------------------
                      (29,956,363)  (29,333,164)   (9,926,524)   (9,794,182)
                    --------------------------------------------------------
Gross profit           26,805,749    23,698,492     8,850,038     7,817,990 
                                                                            
Other income              180,146       172,129        61,687        60,746 
Administrative                                                              
 expenses                                                                   
  Other                (2,246,408)   (2,209,055)     (754,043)     (635,289)
  Depreciation         (1,703,196)   (1,980,908)     (567,732)     (653,771)
                    --------------------------------------------------------
                       (3,949,604)   (4,189,963)   (1,321,775)   (1,289,060)
                    --------------------------------------------------------
Profit from                                                                 
 operating                                                                  
 activities            23,036,291    19,680,658     7,589,950     6,589,676 
----------------------------------------------------------------------------
                                                                            
Finance income             66,002        60,650        19,733        21,269 
Finance costs          (3,121,638)   (4,348,401)   (1,351,692)   (1,520,187)
                    --------------------------------------------------------
Net finance costs      (3,055,636)   (4,287,751)   (1,331,959)   (1,498,918)
                                                                            
                    --------------------------------------------------------
Profit before income                                                        
 taxes                 19,980,655    15,392,907     6,257,991     5,090,758 
                                                                            
Income tax expense     (4,421,821)   (2,316,295)   (2,051,708)   (1,213,403)
                    --------------------------------------------------------
Profit and                                                                  
 comprehensive                                                              
 income for the                                                             
 period              $ 15,558,834  $ 13,076,612  $  4,206,283  $  3,877,355 
                    --------------------------------------------------------
                                                                            
Profit and                                                                  
 comprehensive                                                              
 income attributable                                                        
 to:                                                                        
  Owners of the                                                             
   Company           $ 14,545,111  $ 12,241,649  $  3,860,961  $  3,606,568 
  Non-controlling                                                           
   interest             1,013,723       834,963       345,322       270,787 
                    --------------------------------------------------------
Profit and                                                                  
 comprehensive                                                              
 income for the                                                             
 period              $ 15,558,834  $ 13,076,612  $  4,206,283  $  3,877,355 
                    --------------------------------------------------------
                                                                            
Earnings per share                                                          
Basic earnings per                                                          
 share               $      0.670  $      0.579  $      0.174  $      0.170 
                                                                            
                                                                            
EBITDA to Owners     $ 25,288,945  $ 22,519,250  $  8,337,358  $  7,537,605 
EBITDA to Owners %           46.7%         44.4%         46.5%         44.8%

November Dividend

Gamehost has declared a cash dividend for the month of November 2012 of $0.0733 per common share. The dividend will be paid on December 14, 2012 to shareholders of record on November 30, 2012. The ex-dividend date is November 28, 2012.

This dividend is considered an "Eligible Dividend" and therefore, eligible for the enhanced gross-up and dividend tax credit available to shareholders.

This press release may contain forward-looking statements. Forward-looking statements may contain words such as "anticipates", "believes", "could", "expects", "indicates", "plans" or other similar expressions that suggest future outcomes or events. Use of these statements reflect reasonable assumptions made on the basis of management's current beliefs with information known by management at the time of writing. Many factors could cause actual results to differ from the results discussed in forward-looking statements. Actual results may not be consistent with these forward- looking statements.

Gamehost is a corporation established under the laws of the Province of Alberta. The Company's operations are all located in the Province of Alberta, Canada. Operations of the Company include the Boomtown Casino in Ft. McMurray, the Great Northern Casino, Service Plus Inns & Suites hotel and a strip mall all located in Grande Prairie. The Company also holds a 91% ownership position in Deerfoot Inn & Casino Inc. in Calgary.

These unaudited interim financial results include the accounts of Gamehost Inc. and its subsidiaries; however, they do not include all disclosures normally provided in annual consolidated financial statements and should be read in conjunction with the 2011 annual consolidated financial statements. Further, while the financial figures included in this preliminary interim results announcement have been computed in accordance with IFRS applicable to interim periods, this announcement does not contain sufficient information to constitute an interim financial report as that term is defined in International Accounting Standard ("IAS") 34, "Interim Financial Reporting". The company has published and filed an interim financial report that complies with IAS 34 for the interim period ended September 30, 2012. This report, along with historical financial reports can be found on the Company's website at www.gamehost.ca and will be filed in its entirety along with the Company's other continuous disclosure documents, when they are available, on SEDAR at www.sedar.com.

Gamehost common shares and convertible debentures trade on the Toronto Stock Exchange (TSX) under the symbols GH and GH.DB respectively.