Goldmoney Inc. Reports Financial Results for Fiscal Third Quarter 2019

Goldmoney Inc. (TSX:XAU) (US:XAUMF) (“Goldmoney” or the “Company”), a
precious metal financial service and technology company, today announced
financial results for the quarter ended December 31, 2018 (the Company’s
third quarter of its fiscal year-end of March 31, 2019). All amounts are
expressed in Canadian dollars unless otherwise noted.

Quarterly Highlights

• Consolidated Revenue of $84 million, a 21% increase
  Quarter-over-Quarter.
• IFRS Net Income of $28.6 million ($0.37 per share), a quarterly record
  for the Company.
• Non-IFRS Adjusted Gain¹ of $28.4 million, a quarterly
  record for the Company.
• Currency loans totaling $20.4 million of balance sheet capital
  extended to borrowers against their pledged precious metals earning
  interest rates ranging from 3.55% to 5.05%.
• Corporate precious metal position of $15.5 million at December 31,
  2018 as directly owned precious metals. An additional $11.9 million
  gold and platinum loans are extended to Menē Inc. at quarter end.
• Total balance sheet precious metal exposure of $27.4 million as of
  December 31, 2018, a new Company record, reflecting the Company’s
  long-term commitment to grow precious metal ownership per share.
• Non-Balance Sheet Client assets under custody stable at $1.82 billion.
• Tangible Common Equity² of $131.9 million, a new
  Company record.

Menē Stock Exchange Listing

On October 30, 2018, Menē Inc. completed its reverse takeover
transaction with Amador Gold Corp. and separation from Goldmoney. On
November 6, 2018, Menē Inc.’s subordinate voting shares (the “Class B
Shares”) were listed on the TSX Venture Exchange under the symbol: MENE.
On December 7, 2018, Goldmoney distributed 3,989,947 million Class B
Shares to the shareholders of Goldmoney on a pro-rata basis.

Menē Inc.’s public listing, the appointment of additional independent
directors to the Menē board, and the decision by Goldmoney’s directors
to distribute 3,989,947 Class B subordinate voting shares of Menē pro
rata to the shareholders of Goldmoney, resulted in a loss of control and
a change in IFRS accounting treatment to investment in associate. This
change in accounting treatment contributed a $31.8 million gain to
Goldmoney’s quarterly results in Q3 2019.

Goldmoney currently holds approximately 76.6 million Class B Shares,
representing a 33% of the total issued and outstanding shares of Menē on
a non-diluted basis. The Class B Shares held by Goldmoney will be marked
to market on Goldmoney’s balance sheet in subsequent quarters.

Refer to “Use of Non-IFRS Financial Measures” and “Reconciliation of
Non-IFRS Financial Measures” in the MD&A.

Please visit our SEDAR
profile to view the Company’s consolidated financial statements and
MD&A.

Statement from the CEO

“We are pleased to report a record quarter not only in
IFRS earnings and tangible common equity, but also in total assets under
management. When combining the tangible assets on our balance sheet with
our non-balance sheet assets under custody, our group has crossed the $2
billion mark in total assets under management or custody. When
considering that over 90% of these assets are precious metals, one can
appreciate that we are very well exposed economically to rising precious
metal prices. I am pleased with this result and look forward to further
growing our long-term economic exposure to precious metals and tangible
assets. Menē Inc. is becoming an incredible business, having delivered
Goldmoney a substantial return on our $2 million investment from only
two years ago. From where I sit, the future of Menē Inc. appears very
bright and I believe the business can scale to substantial revenue in a
few years and produce significant operating margins and profits.
Companies within the same industry as Menē generally trade at a multiple
to sales of 4-7 times during their growth years (e.g. Warby Parker,
FarFetch, Moncler, Canada Goose) and I believe that Menē is no different
than any of those businesses in terms of the quality of the brand which
is being built. The Goldmoney.com business continues to be well run by
COO Paul Mennega who is improving and optimizing the core business
offering. In this 2019 year we will see a clearer focus on the part of
separating Menē from Goldmoney from an accounting perspective. While
this quarter was a good first step, there were still significant
operating expenditures associated with Menē Inc. during the quarter.
Schiff Gold continues to perform extremely well, and we are seeing
increased synergies from the combination of Goldmoney.com and
SchiffGold, primarily in the physical precious metal redemption space.
We would like to thank our shareholders for their continued support and
confidence. We believe our corporation will continue to deliver
long-term shareholder value which is now well apparent through our
financial results.” - Roy Sebag, Chairman and Chief Executive
Officer

Statement from the CFO

“This was a great quarter for Goldmoney Inc. It is important to remember
that these quarterly results consolidate Menē Inc until the end of
October, which as a relatively recent start-up is still in its ramp up
phase. The good news is that following the Menē spinoff, our next
quarterly financials will account for Menē as an associate, thereby
removing its revenue and expenses from Goldmoney’s consolidated balance
sheet. I am proud of the work our team has done on Menē and believe
there exists great potential to further develop this business. This
transition in accounting will better highlight Goldmoney’s core business
operations and earnings potential. As our CEO, Roy Sebag has advised, we
are considering several opportunities to further optimize our core
business structure, and we look forward to presenting these achievements
in future quarters.” Steve Fray – CFO & Corporate Secretary

The selected financial information included in this release is qualified
in its entirety by, and should be read together with, the Company's
unaudited condensed consolidated interim financial statements for the
three and six months ended September 30, 2018 prepared in accordance
with International Financial Reporting Standards ("IFRS") and the
corresponding management's discussion and analysis, which are available
under the Company's profile on SEDAR at www.sedar.com.

Investor Relations Questions

As is our Company’s tradition, we only host two conference calls per
year. Our next call will be held on the reporting date for our Year End
results. Investors with interim questions may send them to: [email protected].

Non-IFRS Measures

This news release contains non-IFRS financial measures; the Company
believes that these measures provide investors with useful supplemental
information about the financial performance of its business, enable
comparison of financial results between periods where certain items may
vary independent of business performance, and allow for greater
transparency with respect to key metrics used by management in operating
its business. Although management believes these financial measures are
important in evaluating the Company's performance, they are not intended
to be considered in isolation or as a substitute for, or superior to,
financial information prepared and presented in accordance with IFRS.
These non-IFRS financial measures do not have any standardized meaning
and may not be comparable with similar measures used by other companies.
For certain non-IFRS financial measures, there are no directly
comparable amounts under IFRS. These non-IFRS financial measures should
not be viewed as alternatives to measures of financial performance
determined in accordance with IFRS. Moreover, presentation of certain of
these measures is provided for year-over-year comparison purposes, and
investors should be cautioned that the effect of the adjustments thereto
provided herein have an actual effect on the Company's operating results.

Non-IFRS Adjusted Gain¹ is a non IFRS financial measure. This
figure excludes from IFRS Net Income the impact of non-cash items,
including the amortization of intangible assets and stock-based
compensation. Refer to the MD&A for a detailed breakdown of these items.

Tangible Common Equity² is a non-IFRS measure. This figure
excludes from total shareholder equity (i) intangibles, and (ii)
goodwill, and is useful to demonstrate the tangible capital employed by
the business.

Adjusted Gross Profit³ is a non IFRS financial measure, also
referred to as Gross profit excluding gain/(loss) on revaluation of
precious metals inventories. This figure excludes from Gross profit the
gain (loss) on revaluation of precious metals inventories.

For a full reconciliation of non-IFRS financial measures used herein to
their nearest IFRS equivalents, please see the section entitled
"Reconciliation of Non-IFRS Financial Measures" in the Company's MD&A
for the year ended March 31, 2018.

About Goldmoney Inc.

Goldmoney Inc. (TSX: XAU) is a precious metal focused investment
company. Through its ownership of various operating subsidiaries, the
company is engaged in precious metal investment, custody and storage,
jewelry, coin retailing, and lending. Goldmoney manages and oversees in
excess of $1.8 billion in assets for clients around the world. The
company’s operating subsidiaries include: Goldmoney.com, Menē Inc.
(TSXV: MENĒ), SchiffGold.com, and Lend & Borrow Trust. Through these
businesses and other investment activities, Goldmoney gains long-term
exposure to precious metals. For more information about Goldmoney, visit goldmoney.com.

Forward-Looking Statements

This news release contains or refers to certain forward-looking
information. Forward-looking information can often be identified by
forward-looking words such as “anticipate”, “believe”, “expect”, “plan”,
“intend”, “estimate”, “may”, “potential” and “will” or similar words
suggesting future outcomes, or other expectations, beliefs, plans,
objectives, assumptions, intentions or statements about future events or
performance. All information other than information regarding historical
fact, which addresses activities, events or developments that the
Goldmoney Inc. believes, expects or anticipates will or may occur in the
future, is forward-looking information. Forward-looking information does
not constitute historical fact but reflects the current expectations the
Company regarding future results or events based on information that is
currently available. By their nature, forward-looking statements involve
numerous assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking
information will not occur. Such forward-looking information in this
release speak only as of the date hereof.

Forward-looking information in this release includes, but is not
limited to, statements with respect to: service times for transactions
on the Goldmoney network; growth of the Company’s business, expected
results of operations, and the market for the Company’s products and
services and competitive conditions. This forward-looking information is
based on reasonable assumptions and estimates of management of the
Company at the time it was made, and involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking information. Such factors include, among
others: the Company’s operating history; history of operating losses;
future capital needs and uncertainty of additional financing;
fluctuations in the market price of the Company’s common shares; the
effect of government regulation and compliance on the Company and the
industry; legal and regulatory change and uncertainty; jurisdictional
factors associated with international operations; foreign restrictions
on the Company’s operations; product development and rapid technological
change; dependence on technical infrastructure; protection of
intellectual property; use and storage of personal information and
compliance with privacy laws; network security risks; risk of system
failure or inadequacy; the Company’s ability to manage rapid growth;
competition; the ability to identify opportunities for growth internally
and through acquisitions and strategic relationships on terms which are
economic or at all; effectiveness of the Company’s risk management and
internal controls; use of the Company’s services for improper or illegal
purposes; uninsured and underinsured losses; theft & risk of physical
harm to personnel; precious metal trading risks; and volatility of
precious metals prices & public interest in precious metals investment;
and those risks set out in the Company’s most recently filed annual
information form, available on SEDAR.
Although the Company has attempted to identify important factors that
could cause actual results to differ materially, there may be other
factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such statements will prove to
be accurate as actual results and future events could differ materially
from those anticipated in such statements. Accordingly, readers should
not place undue reliance on forward-looking information. The Company
undertakes no obligation to update or revise any forward-looking
information, except as required by law.

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