Iao Kun Group Holding Company Limited to Acquire the Jeju Sun Hotel & Casino in Jeju, Korea

HONG KONG–(BUSINESS WIRE)–Iao Kun Group Holding Company Limited (“IKGH”) (NASDAQ:IKGH), which
operates through its subsidiaries and related promotion entities that
act as VIP room gaming promoters and a collaborator, today announced
that its indirect wholly-owned subsidiary, Iao Kun Jeju Hotel Company
Limited (“Iao Kun Jeju”), has entered into a share purchase agreement
with Golden & Luxury Company, Ltd. (“Golden Luxury”), Solaire Korea Co.,
Ltd. and Bloomberry Resorts Corporation to acquire the Jeju Sun Hotel &
Casino in Jeju, Korea for KRW117.5 billion in cash (US$101 million based
on the exchange rate on June 22, 2016).

Jeju Sun Hotel & Casino is a 5-hibiscus hotel located in Jeju City on
the island of Jeju-Do in Korea, conveniently located five minutes from
Jeju International Airport. The hotel has 203 well-appointed rooms and
suites, 2,125 square meters of gaming space featuring table games such
as baccarat, blackjack, Sic Bo, roulette as well as the latest slots and
electronic gaming machines, several reputable dining establishments
featuring international cuisine options, a lobby lounge, bar and banquet
facilities.

“We are excited to be acquiring the Jeju Sun Hotel and Casino in Korea,
our first lodging venture, which effectively broadens our strategic
focus toward becoming a full-service hospitality company,” said Mr. Lam
Man Pou, Chairman of IKGH. “We believe the acquisition will materially
expand our footprint in Asia into the growing Korean market and
increasingly popular island of Jeju-Do while allowing us to further
diversify and stabilize our revenue streams and cash flows. We expect
the current Jeju Sun Hotel management team will remain to continue to
run the newly renovated property, and we look forward to welcoming them
to IKGH.”

Under the terms of the agreement, Iao Kun Jeju will acquire (i) 96.23%
of the outstanding capital stock of Golden Luxury, as well as (ii) all
loans and obligations under finance leases and all other monetary
liabilities payable by Golden Luxury to Solaire Korea Co. and Bloomberry
Resorts Corporation. IKGH intends to finance the acquisition through a
loan and the issuance of equity, and the transaction is expected to
close in the third quarter of 2016, subject to the satisfactory
completion of due diligence and customary closing conditions, including
the receipt of any required governmental approvals.

Forward-Looking Statements

This press release includes forward-looking statements made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995 that involve risks and uncertainties. Forward-looking
statements are statements that are not historical facts. Such
forward-looking statements, based upon the current beliefs and
expectations of IKGH’s management, are subject to risks and
uncertainties, which could cause actual results to differ from the
forward-looking statements. The gaming industry is characterized by an
element of chance. Theoretical win rates for IKGH’s promotion entities’
VIP gaming room operations depend on a variety of factors, some beyond
their control. In addition to the element of chance, theoretical win
rates are also affected by other factors, including gaming patrons’
skill and experience, the mix of games played, the financial resources
of gaming patrons, the spread of table limits, the volume of bets placed
by IKGH’s promotion entities’ gaming patrons and the amount of time
gaming patrons spend on gambling — thus VIP gaming rooms’ actual win
rates may differ greatly over short time periods, such as from quarter
to quarter, and could cause their quarterly results to be volatile.
These factors, alone or in combination, have the potential to negatively
impact the VIP gaming rooms’ win rates. Investors and potential
investors should consult all of the information set forth herein and
should also refer to the risk factors set forth in IKGH’s Annual Report
on Form 20-F filed in March 2016, and other reports filed or to be filed
from time-to-time with the Securities and Exchange Commission.

About Iao Kun Group Holding Company Limited

IKGH is a holding company which operates through its subsidiaries and
related promotion entities that act as VIP room gaming promoters and a
collaborator, and is entitled to receive all of the profits of the VIP
gaming promoters and a collaborator from VIP gaming rooms. IKGH’s VIP
room gaming promoters and collaborator currently participate in the
promotion of five major luxury VIP gaming facilities in Macau, China,
the largest gaming market in the world. One VIP gaming room is located
at the top-tier 5-star hotel, the StarWorld Hotel & Casino in
downtown Macau, and another is located in the luxury 5-star hotel, the
Galaxy Macau™ Resort in Cotai, each of which is operated by Galaxy
Casino, S.A. Additional VIP gaming rooms are located at the Sands Cotai
Central and City of Dreams Macau, both in Cotai, and Le Royal Arc
Casino, located in NAPE, Downtown Macau. IKGH recently started trial
operations to the Australian casinos (Crown Perth Casino in Perth,
Australia and the Crown Melbourne Casino in Melbourne, Australia) to
gain a greater understanding of the preferences of its junket agents and
VIP players and the logistics of the market.

Contacts

Iao Kun Group Holding Company Limited
Ryan Yip, +853 2782 3425
ryany@ikghcl.com