Investor Information Update – February 4, 2013

To Our Investors: Today (February 4, 2013) we filed a Form 8-K announcing two separate financing transactions and we wanted to provide you with a brief summary.

First, one of our convertible note holders transferred ownership of a $50,000 note to a third party, Magna Group, LLC. Freeze Tag terminated the initial note and issued a new note to Magna in the same principal amount. Under the terms of the transaction, Magna can convert the note to stock at a discount to the trading price at the time of the conversion. Once converted, this will reduce our outstanding debt by $50,000.

In a separate transaction, we borrowed $21,500 from Hanover Holdings. This note has a term of 8 months and an annual interest rate of 12%, and can be converted anytime by Hanover Holdings at a discount to the trading price at the time of conversion. Net proceeds to Freeze Tag from this transaction will be approximately $20,000.

Taken together, these two transactions improve both our financial position and flexibility. We are pleased to have additional capital to fund ongoing initiatives in support of our near term releases and ongoing game development. We will be providing an update on our plans and outlook for 2013 shortly.

We appreciate the support of all of our investors. Please feel free to email us with any questions you may have.

You can find the 8-K filing on our website here: https://freezetag.com/investors/ (click on the SEC Filings tab)