TORONTO–(BUSINESS WIRE)–lt;a href=”https://twitter.com/search?q=%24MENE&src=ctag” target=”_blank”gt;$MENElt;/agt; lt;a href=”https://twitter.com/hashtag/earnings?src=hash” target=”_blank”gt;#earningslt;/agt;–Menē Inc. (TSX-V:MENE) (US:MENEF) (“Menē” or the “Company”),
an online 24 karat investment jewelry brand, today announced financial
results for the first quarter ended March 31, 2019 (“Q1 2019”).
All amounts are expressed in Canadian dollars unless otherwise noted.

FINANCIAL HIGHLIGHTS:

• IFRS Revenue of $2.7 million, a $1.7 million (163%) increase
  year-over-year (“YoY”). Non-IFRS Adjusted Revenue of $2.9
  million, an increase of 151% YoY.
• Gross Profit of $0.7 million, an increase of $0.5 million (298%) YoY.
• Gross Margin expanded by 900 basis points, from 16% in Q1 2018 to 25%
  in Q1 2019.
• Generated $0.3 million in Free Cash Flow in Q1 2019, the net of
  operating cash flow less capital expenditures.
• Reduced Net Loss by 26% to $1.1 million from $1.5 million in Q1 2018.
  Non-IFRS Adjusted Loss decreased by 54% YoY to $0.6 million.
• Sold 8,182 units of jewelry through 7,354 customer orders, an increase
  of 7,242 units (770%) and 6,469 orders (731%) respectively compared to
  Q1 2018.
• Gold Weight Sold increased by 17 kilograms (115%) and Platinum Weight
  Sold increased by 9.6 kilograms (685%) from Q1 2018.
• Strong Tangible Common Equity of $17.8 million, with $17.5 million in
  cash and cash equivalents and $16.2 million in short-term investments
  as of March 31, 2019. Tangible Common Equity increased by 58% YoY,
  demonstrating the Company’s ability to access cash to grow the
  business and its high-margin and low fixed-cost business model.

OPERATIONAL HIGHLIGHTS:

• Introduced 99 new product designs during the quarter.
• Launched “Menē x”, a new product category of limited-edition jewelry
  collections designed in collaboration with select creators, artists
  and tastemakers. Unveiled first collaboration with world-renowned
  fashion photographers Inez van Lamsweerde and Vinoodh Matadin (“Inez &
  Vinoodh”).
• Raised $20 million in a Debt Financing Round with a strategic lender.

Notes:

(1) The Company adjusts its revenue by adding back the value of jewelry
that the Company bought back from customers, or was returned by
customers, and discounts given to customers. These adjustments are made
to assess the gross revenue before deducting these items from revenue
per IFRS. See Non-IFRS Measures for a full definition.

(2) The Company adjusts its gross profit by adjusting for Non-IFRS
revenue and the attributable weighted average cost of sales for the
value of jewelry that the Company bought back from customers, or was
returned by customers, and discounts given to customers. See Non-IFRS
Measures for a full definition.

(3) The Company adjusts its total comprehensive loss by adjusting for
Non-IFRS Adjusted Gross Profit, and removing the impact of non-cash
expenses, consisting of depreciation and amortization, stock based
compensation, and a one-time listing expense, the fair value of
5,984,750 shares issued for the amalgamation with Amador Gold Corp.’s
subsidiary in Q4 2018. See Non-IFRS Measures for a full definition.

(4) Inventory balances in kilograms of gold are calculated by taking the
total Canadian Dollar (CAD) inventory value at each quarter-end date,
and dividing the value by the CAD gold spot price per gram.

(5) The period July 11, 2017 to December 31, 2017 and the fiscal year
ended December 31, 2018 are audited figures. The period Q1 to Q3 2018
have been reviewed by the same independent audit firm, KPMG. Q1 2019 has
not been reviewed.

(6) The Company began generating sales to an invite-only group in
October 2017. The Company began selling to the general public in January
2018.

Statement from Founder & CEO Roy Sebag:

Menē continues to show compelling organic growth and sales momentum. In
Q1, we generated over $2.7 million of sales, $0.7 million in gross
margin, and $0.3 million in IFRS Free Cash Flow. It is important to
remind our shareholders that this business has only been in operation
for 15 months at the quarter-end date. Following the completion of our
debt-note funding and a repayment of a portion of the historic loans
from Goldmoney Inc., our balance sheet is strong and well-positioned for
the next few years. We remain focused on building our brand equity
within the fashion, art, and jewelry cultural segments, seeing that with
each passing day, our brand is being embraced by popular thought leaders
and tastemakers. As of today’s date, we have over 30,000 registered
customers from over 20 countries around the world. Inventory levels
remain strong and are being built up in anticipation of a strong
2019-2020 season (October-February). I am very proud of the hard work
and dedication shown by our team and the disciplined way in which we are
building this company and its business model. My personal focus this
quarter has been in setting the infrastructure for several C-level
executive hires in Paris and Toronto which will help the company scale
its operations and position Menē for sustained growth in the years to
come. I look forward to updating our shareholders on these developments
as they formally materialize.

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 Revenue¹ is a non-IFRS measure. The Company
adjusts its revenue by adding back the value of jewelry that the Company
bought back from, or was returned by customers, and discounts given to
customers. These adjustments are made to assess the gross revenue before
deducting these items per IFRS revenue.

Non-IFRS Adjusted Gross Profit² is a non-IFRS measure. The
Company adjusts its gross profit by adjusting for the additional revenue
and associated cost of sales added back for the value of jewelry that
the Company bought back from, or was returned by customers, and
discounts given to customers.

Non-IFRS Adjusted Loss³ is a non-IFRS measure. The Company
adjusts its total comprehensive loss by adjusting for Non-IFRS Adjusted
Gross Profit, and removing the impact of non-cash expenses, consisting
of depreciation and amortization, stock based compensation, and a
one-time listing expense, the fair value of 5,984,750 shares issued for
the amalgamation with Amador Gold Corp.’s subsidiary in Q4 2018.

For a full definition of non-IFRS financial measures used herein to
their nearest IFRS equivalents, please see the section entitled
“Non-IFRS Financial Measures” in the Company’s MD&A for the three months
ended March 31, 2019.

About Menē Inc.

Menē crafts pure 24 karat gold and platinum jewelry that is
transparently sold by gram weight. Through mene.com, customers may buy
jewelry, monitor the value of their collection over time, and sell or
exchange their pieces by gram weight at prevailing market prices. Menē
was founded by Roy Sebag and Diana Widmaier-Picasso with a mission to
restore the relationship between jewelry and savings. Menē empowers
consumers by marrying innovative technology, timeless design, and pure
precious metals to create pieces which endure as a store of value.

For more information about Menē, visit mene.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 Menē
Inc. (the “Company”) 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.

Contacts

Media and Investor Relations Inquiries:
Renee Wei
Head
of Investor Relations
+1 647 494 0296
[email protected]

Robert Lee
Chief Financial Officer
[email protected]