Mr. Stephen Giblin reports

BIG ROCK BREWERY ANNOUNCES THIRD QUARTER 2023 RESULTS: CONTINUED IMPROVEMENT IN OPERATING INCOME AND ADJUSTED EARNINGS

Big Rock Brewery Inc. has released its financial results for the three and nine months ended Sept. 30, 2023.

Financial Summary

For the three months ended September 30, 2023, compared to the three months ended September 30, 2022, the Corporation reported:

net revenue of $11.6 million, down 3% from $11.9 million;

adjusted earnings before interest, taxes, depreciation, and amortization ("Adjusted EBITDA ") of $1.0 million, up from $0.1 million (Adjusted EBITDA is a non-GAAP financial measure, see "Non-GAAP Measures");

sales volumes, exclusive of co-packing volumes, of 44,451 hectolitres ("hl") down 6% compared to 47,154 hl;

operating income of $0.06 million compared to a loss of $1.1 million; and

net loss of $0.2 million, down from $1.1 million.

For the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022, the Corporation reported:

total net revenue of $34.7 million, down 5% from $36.6 million;

Adjusted EBITDA increased $2.8 million, representing an improvement from $0.1 million versus the comparative period previous year;

sales volumes, exclusive of co-packing volumes, of 121,889 hl down 1% from 122,842 hl;

an operating loss of $0.05 million compared to a loss $3.1 million;

a net loss of $0.8 million, reduced by 73% from $2.9 million; and

a net working capital improvement of $3.3 million on a year-over-year basis (net working capital is a capital management measure, please see "Non-GAAP Measures").

"With the continued outstanding effort from our people we are pleased to announce the significant improvements in the Company's financial performance during the third quarter," noted Interim President and Chief Executive Officer Stephen Giblin. "In addition to the $2.8 million improvement in Adjusted EBITDA over the prior period last year, we have continued to invest in our sales, marketing and product innovations. The first launch from our new innovation effort is, "Pacer" our non-alcohol beer, and the initial results are beyond our expectations. With more innovations on the way and a strong sales and marketing team in place we expect continued improvement in Big Rock's financial results."

On March 31, 2022, the Corporation amended the terms of its existing credit agreement with its lender which encompass both the Operating Facility of $6 million and the Term Debt of $10 million. At September 30, 2023, the Corporation had $2.0 million available on its Operating Facility. During the quarter the Corporation extended the maturity of its Second Lien Financing facility ($4.3 million) to June 30, 2024.

Summary of Results

(1) Excludes contract manufacturing volumes due to the nature of the agreements.(2) Non-GAAP measure. See "Non-GAAP Measures".

Outlook & Strategy

Big Rock's long-term growth strategy is to maximize the utilization of its capacity and capital investments to drive growth in volume, improve productivity and lower operating costs. With greater operational efficiencies and utilization of capacity, the Corporation aims to gain market share and "premiumize" its branded portfolio. Innovation and co-creation of new products with the Corporation's strategic partners will increase market demand and further enable the Corporation to gain market share. Big Rock has embarked on a strategy of, where possible, balancing production and sales between quarters which allows for a reduction of operating costs. This strategy supports Big Rock's vision to become Canada's largest independent brewer.

Big Rock is continuing to focus on product innovation and development in the premium category to better align with trends in consumer demand. As part of this initiative, during early Q4 the Company introduced a new non-alcoholic beverage, "Pacer" to satisfy market demands.

During the quarter Big Rock managed to increase Adjusted EBITDA ten-fold, despite a shortfall in co-packing volumes. Profitability increased on a quarter-over-quarter basis versus the prior year, largely the result of cost-savings initiatives and alignment of certain financial assets with fair value.

Additional Information

The interim condensed consolidated financial statements and Management's Discussion and Analysis for the three and nine months ended September 30, 2023 dated November 14, 2023, can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR at www.sedar.com under Big Rock Brewery Inc.

Non-GAAP Measures

The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles. This press release contains the term "Adjusted EBITDA" and "net working capital". These financial measures do not have a standardized meaning under the Corporation's Generally Accepted Accounting Principles and therefore may not be comparable to similar measures presented by other issuers. The calculation of EBITDA is a non-GAAP measure, whose nearest GAAP measure is net income, or net loss as applicable, with the reconciliation between the two as follows:

Net working capital is a capital management measure that is defined as current assets less accounts payable, accrued liabilities, and current portion of debt. This measure allows the Corporation to monitor its liquidity in relation to the bank covenants and cash resources available at any time.

We seek Safe Harbor.