Slyce Inc. Reports Q3, 2016 Financial Results CALGARY, CANADA – September 29th, 2016 — Leading visual search and image recognition company Slyce Inc. (TSX VENTURE:SLC) (“Slyce” or the “Company”) today announced its financial results for the third quarter ended July 31, 2016. The interim financial statements and Management Discussion and Analysis for the quarter ended July 31, 2016 are available at www.SEDAR.com. Business Highlights Key customer announcements during the nine-month period ended July 31, 2016 include the following: • On November 25, 2015, Slyce announced a new contract with ToysRus, for the provision of several of Slyce’s visual search and digital coupon services. • On the same date, Slyce also announced its new and proprietary retail technology solution, ‘Slyce Link’, that enables retailers to show visually similar products to their customers at highly strategic points in their online purchasing journeys in order to increase sales and reduce cart abandonment. • On December 8, 2015, Slyce announced a contract with leading specialty fashion retailer, Nordstrom, to power visual search for mobile commerce. • On December 18, 2015, Slyce announced that it had integrated fully automated, 3D search technology that is now live with online shoe-and-clothing retailer, Zappos.com, to power visual search for mobile commerce. • On March 22, 2016, Slyce announced that it had officially launched visual search technology with leading US footwear and accessories retailer, Shoe Carnival. • On May 16, 2016, Best Buy expanded its relationship with Slyce to introduce 3D search capabilities, alongside barcode and catalog scanning, into its iOS and Android apps. The visual search functions were moved to the primary search bar of the app, accessible when a user taps on the camera icon. • On June 22, 2016, Slyce announced that leading apparel retailer Express had contracted to utilize Slyce’s “Universal Scanner” — including barcode scanning, catalog scanning, and 3D visual search. • On June 28, 2016, Slyce announced that American Eagle Outfitters had contracted to use Slyce’s visual search technology in the retailer’s app. During August 2016, key customer developments included the following:”. • Urban Outfitters expanded its contract to utilize Slyce’s 3D visual search in its “Scan + Shop” feature, and moved the location of its scanning features into the search bar of its Apple app.

LEGAL_CAL:12282120.1

• Home Depot moved its Universal Scanner provided by Slyce out of “Beta” and into the search bar of its Apple and Android applications. • Slyce clients Nordstrom, Express and American Eagle Outfitters all launched Universal Scanner, adding visual search camera icons to the main screens of their app. The Corporation continues to expand its pipeline of marque retail clients and is currently contracted with 22 brands, a few of which are in the onboarding process. In September 2016, the board was pleased to appoint Ted Mann, formerly President of the Corporation, as Chief Executive Officer and President. Financial Highlights The following table presents selected significant financial data for the current year to date and prior fiscal year. As at July 31, 2016 (Unaudited)

As at October 31, 2015 (Audited)

$1,382,321 $8,232,156 $9,614,477 $2,014,828 $1,376,066 $6,223,583 $20,143,674

$3,977,426 $19,516,944 $23,494,370 $3,431,114 $737,741 $19,325,515 $23,494,370

Selected Financial Information Current assets Non-current assets Total assets Current liabilities Non-current liabilities Shareholders' equity Total liabilities and shareholders’ equity

Current assets consist of cash, trade receivables, other liquid assets and amounts due from related parties. Cash and cash equivalents decreased significantly as a result of total operating costs that were much higher than the total revenues generated by the Corporation. Non-current assets decreased to $8,232,156 as at July 31, 2016 compared to $19,516,944 as at October 31, 2015. In addition to amortization of development costs, this decrease resulted primarily from a one-time, non-cash impairment charge of $10,574,715 recorded on intangible assets during the quarter ended July 31, 2016. Liabilities include trade and other payables, loan payable, deferred revenue, deferred consideration and common shares held in escrow. The following table presents selected operational data for the three and nine months ended July 31, 2016 and July 31, 2015.

LEGAL_CAL:12282120.1

For the three months ended July 31, 2016 Revenue Services rendered Other income Total revenue

$

Expenses General and administrative Amortization of intangible assets Share-based payments Consulting fees Professional fees Amortization of property and equipment Interest expense Business development Total expenses Other expenses Exchange (gain) loss Changes in fair value of contingent consideration and commons shares held in escrow, presented a Change as in deferred liability consideration Impairment of intangible assets Total other expenses Net loss Foreign exchange (gain) loss on translation of foreign subsidiaries Net and comprehensive loss

LEGAL_CAL:12282120.1

$

For the three months ended July 31, 2015

310,929 $ 14,554 325,483

For the nine months ended July 31, 2016

435,968 $ 82,855 518,823

For the nine months ended July 31, 2015

1,573,060 $ 184,305 1,757,365

934,277 96,557 1,030,834

1,406,180

2,238,536

6,402,199

6,139,421

716,947

366,110

2,177,796

1,037,405

48,797 107,318 139,945

245,025 385,923 146,276

518,622 488,904 1,087,286

1,425,785 1,298,829 632,347

27,423

38,312

316,225

110,385

17,539 33,355 2,497,504

201,506 3,621,688

17,539 83,304 11,091,875

622,121 11,266,293

(1,774)

53,260

(30,119)

43,101

-

-

(745,475)

-

-

141,644

(223,001)

321,473

10,576,489

-

10,576,489

-

10,574,715

194,904

9,577,894

364,574

(12,746,736)

(3,297,769)

(18,912,404)

(10,600,033)

12,826

(79,463)

(49,298)

8,768

(12,733,910) $ (3,218,306) $ (18,961,702) $

(10,608,801)



For the nine-month period ended July 31,2016 revenue increased to $1,573,060 from $934,277 for the same period last year, an increase of 68 percent. This increase was driven by onboarding new customers during the period and additional fees derived from existing customers utilizing more of Slyce’s products. For the three months ended July 31,2016, total revenue was lower by $125,039. This was due to a one-time revenue recognition in the previous quarter of $150,000 as well as a reclassification of approximately $200,000 between revenue and expenses in the current quarter. Without the reclassification, “normalized” revenue for the quarter would have been $510,929. Other revenues of $14,554 for the quarter and $184,305 for the nine months ended July 31,2016 were primarily comprised of a Scientific Research and Experimental Development Tax Incentive (“SRED”) rebate of $140,373, a refund related to leasehold improvements of $38,249 and interest income.



Total expenses for the nine months ended July 31, 2016 were lower by $174,418 to $11,091,875. For the quarter ended July 31, 2016, total expenses were lower by $1,124,184 to $2,497,504. Without the reclassification of approximately $200,000 between revenue and expenses, “normalized” total expenses would have been higher during the quarter to $2,697,504.



During the quarter ended July 31, 2016, the Corporation conducted impairment testing of its intangible assets. The testing considered the net present value of estimated future cash flows derived from the specific assets, taking into account the Company’s current strategic focus, market understanding and corresponding product road map. Those calculations indicated impairments of $4,141,441 on software and intellectual property and $6,435,048 on goodwill and, as a result, the Corporation recorded a one-time impairment charge of $10,576,489.



Total comprehensive loss for the nine months ended July 31, 2016 was higher by $8,352,901 to $18,961,702 compared to $10,608,801 for the same period last year. Without the onetime impairment charge of $10,576,489 “normalized” total comprehensive loss for the nine months would have been lower by $2,223,588. Total comprehensive loss for the three months ended July 31, 2016 was higher by $9,515,604 to $12,733,910 compared to $3,218,306 for the same period last year. Without the one-time impairment charge of $10,576,489 “normalized” total comprehensive loss for the three months would have been lower by $1,060,885.



Loss before amortization, share-based payments, depreciation, changes in fair value of contingent consideration, fair value changes to deferred consideration and impairment of intangible assets for the nine months ended July 31, 2016 was lower by $1,413,237 to $6,291,748 compared to $7,704,985 for the same period last year, a decrease of loss by 18 percent. For the three months ended July 31, 2016, it was lower by $1,129,598 to $1,377,080 compared to $2,506,678 for the same quarter last year, a decrease of loss by 45 percent.

Slyce CEO Ted Mann commented: “Over the last quarter, Slyce cemented its position as the dominant force in visual search, with far more customers and deployments than any other business in our space. We also matured quite a bit as a company — making tough, but necessary, cuts to reduce our expenses and making careful, strategic decisions to focus 90% of our resources on areas where we have some product-market fit, and just 10% on new product development.”

LEGAL_CAL:12282120.1

Conference Call On September 30, 2016 at 9:00 AM EST, the company will be hosting a live audio conference to discuss this news. To dial into the call please use the call information below: Number: 1-888-289-4573 Code: 9683834 The conference call is open to any investor or stakeholder, including shareholders, broker-dealers and other securities professionals. The call will be recorded and available for review at www.slyce.it. Slyce will be hosting and moderating a Q&A period on the call. Participants can submit questions for the call in advance by emailing [email protected] with the words "Investor Question for Conference Call" in the subject line. Slyce management will endeavour to address as many questions as possible in the hour allocated to the call.

This press release does not constitute an offer to sell or a solicitation of any offer to buy the securities in the United States (“US”), in any province or territory of Canada or in any other jurisdiction. The securities offered have not been and will not be registered under the US Securities Act of 1933, as amended (the “US Securities Act”) or any US state securities laws and may not be offered or sold in the US absent registration or an applicable exemption from the registration requirements of the US Securities Act and applicable US state securities laws. There shall be no sale of the securities in any jurisdiction in which an offer to sell, a solicitation of an offer to buy or sale would be unlawful. About Slyce Inc. Slyce, based in Calgary, Alberta, delivers sophisticated visual search technologies and is currently focused on enabling a powerful sales channel for major retailers and their customers. Consumers, wherever they are, can conveniently engage with retailers by taking pictures of desired products using their mobile devices, thereby initiating the visual search service with near-instant product recognition capability. The Company delivers its technology both as a white-label visual search platform and as a suite of consumer mobile apps. Slyce’s technology is used by large retail brands such as Neiman Marcus, Urban Outfitters, JCPenney and Home Depot. Slyce’s business model features multiple revenue streams arising from its visual search platform and consumer apps. Slyce is also listed on the Frankfurt exchange trading under (FRANKFURT:06O1) For image download and further company information, please click for the Slyce Media Kit For further information and interviews, please contact: Slyce | Ted Mann, CEO | [email protected]

LEGAL_CAL:12282120.1

READER ADVISORY Neither the TSX-V nor its Regulation Services Provider (as that term is defined in policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release. Statements in this press release contain forward-looking information. The words "will," "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "should," and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by Slyce. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of Slyce. Slyce does not undertake any obligation to update or revise any forward-looking statements except as expressly required by applicable securities laws. None of the information contained on, or connected to, Slyce’s website is incorporated by reference herein.

LEGAL_CAL:12282120.1