Ms. Barbara Feit reports

BIG ROCK BREWERY INC. ANNOUNCES 2016 FINANCIAL RESULTS AND DATE OF ANNUAL MEETING

Big Rock Brewery Inc. has released its financial results for the three months and year ended Dec. 30, 2016.

"During 2016, Big Rock increased volumes and gross profit, even in our principal Alberta market, where recessionary economic conditions have lingered," said interim chief executive officer Barbara Feit. "As well, we focused on building brand awareness in Ontario, in anticipation of the opening of our Etobicoke brewery in September, 2016, and our Toronto Liberty Commons brew pub restaurant in January, 2017. With these new facilities, as well as our breweries in Calgary and Vancouver, we are building brand awareness in all regions where Big Rock products are available."

Financial highlights

For the year ended Dec. 30, 2016, compared with 2015, the corporation:

• Increased sales volumes by 10 per cent, from 181,857 hectolitres to 199,454 hectolitres;
• Increased cash from operating activities by 68 per cent from $2,103,000 to $3,543,000;
• Increased net revenue by 9 per cent, from $39,582,000 to $43,126,000;
• Reduced operating loss from $1,012,000 to $266,000;
• Reduced net loss from $1,075,000 to $453,000.

For the three months ended Dec. 30, 2016, compared with the fourth quarter of 2015, the corporation:

• Increased sales volumes by 8 per cent, from 43,450 hectolitres to 46,993 hectolitres;
• Reduced the cash used in operating activities by 38 per cent from $68,000 to $42,000;
• Increased net revenue by 8 per cent, from $9,662,000 to $10,439,000;
• Incurred an operating loss of $152,000 compared with operating income of $1,000;
• Incurred a net loss of $218,000 compared with $54,000.

Operating highlights

In Alberta, average margins have been compressed due to economic pressures that have contributed to an increase in sales of value-priced offerings, including Big Rock's private label beers and Alberta Genuine Draft lager. In addition, there continues to be significant competitive activity in the Alberta market, where the growth in the number of products listed has been outpacing the growth in overall sales volumes.

Sales for 2016 include a full 12 months of operations from the combined brewery and brew pub in Vancouver, B.C., Big Rock Urban, which commenced commercial operations in April, 2015, and three months of operations from Big Rock's Ontario brewery, which began producing beer at the end of September, 2016. Big Rock Urban serves on-premise consumers in Vancouver and provides distribution for Big Rock's products throughout British Columbia. The Ontario brewery, which contributed to securing new listings at the Liquor Control Board of Ontario and grocery stores, is expected to provide distribution for Big Rock's products throughout Ontario. The Liberty Commons brew pub and restaurant began serving on-premise consumers in downtown Toronto in January, 2017, so it did not contribute to 2016 revenue.

Two thousand sixteen also included the creation of a refreshed update of the corporation's packaging and logo. The new packaging highlights the brand and distinctive quality of Big Rock products with a strategy to maintain loyal supporters and build on brand awareness.

"We are proud of our 30-year legacy as one of Canada's founding craft brewers and the fact that all aspects of Big Rock's products -- from the fresh, all-natural beer and cider inside the package, to the artwork, the detail in the labels and the choice of brand names on the outside -- serve to consistently illustrate our quality and flavour-rich style to consumers," said Ms. Feit.

With the arrival of Big Rock's new brewing facilities in Ontario, Big Rock first launched the new packaging in late 2016 in the Ontario market, with a rolling launch for the rest of Canada in January, 2017.

                                 SUMMARY OF RESULTS  
           ($000s (except hectolitres, per-hectolitre and per-share amounts))

                                Three months ended Dec. 30,             Year ended Dec. 30, 
                                     2016             2015            2016            2015

Sales volumes (hectolitres)        46,993           43,450         199,454         181,857
Net revenue                       $10,439           $9,662         $43,126         $39,582
Operating profit (loss)              (152)               1            (266)         (1,012)
Net income (loss)                    (218)             (54)           (453)         (1,075)
Net income (loss) per share         (0.03)           (0.01)          (0.07)         (0.016)
$ per hectolitres   
Net revenue                        222.14           222.35          216.22          217.66
Cost of sales                      136.11           121.82          111.50          110.28
                                  -------          -------         -------         ------- 

Additional information

The financial statements and management's discussion and analysis dated March 2, 2017, can be viewed on Big Rock's website and on SEDAR under Big Rock Brewery Inc.

Big Rock is also pleased to announced that the annual meeting of Big Rock shareholders will be held on May 11, 2017, at 2 p.m. Calgary time, at the Big Rock Brewery, 5555 76 Ave. Southeast, Calgary, Alta. In accordance with Big Rock's notice bylaw, the board of directors has set 5 p.m. Calgary time on March 24, 2016, as the deadline for receiving any nominations.

About Big Rock Brewery Inc.

Big Rock Brewery produces premium, all-natural craft beers. Big Rock has a broad family of permanent ales and lagers, the Rock Creek Cider series of craft ciders, and a continuing selection of seasonal and cutting-edge small-batch brews. Big Rock brews in Calgary, Alta., Vancouver, B.C., and Toronto, Ont.

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