Mr. David Kinder reports

BIG ROCK BREWERY INC. ANNOUNCES ADDITIONAL $4.2MM TRANCHE IN SECOND LIEN FINANCING

Big Rock Brewery Inc. has added a $4.2-million tranche to its existing $4.3-million second-lien financing with VN Capital Fund I LP. This facility is subordinate to the existing credit arrangement with ATB Financial, which provides a $6-million revolving operating loan facility and $10-million evergreen term loan facility.

Highlights:

• VN Capital and Big Rock have agreed and closed on additional $4.2-million in borrowings, with funds to be used to provide short-term liquidity and grow the business through the introduction of new technology, including ecofriendly packaging and alternative packaging formats.
• The combined $8.5-million second-lien financing facility has a maturity date of Dec. 31, 2024.
• Big Rock looks forward to continuing its relationship with ATB Financial (which provides its senior financing facility) and VN Capital.

VN Capital and Big Rock have agreed that the additional funds available from the second-lien financing will be used to finance working capital and the replacement of packaging equipment allowing its beverages to be packaged in more environmentally friendly and flexible formats. The parties agreed to extend the maturity date of the second-lien financing facility from June 30, 2024, to Dec. 31, 2024.

"We are very excited to secure this new investment which will assist us with expanding our business and our production capacity. This new equipment will sharpen our competitive advantage in multiple markets and assist with our operating margins," noted David Kinder, president and chief executive officer. "This is a major step forward for Big Rock."

VN Capital is a principal shareholder and insider of the corporation and P. Donnell Noone, a director of Big Rock, is a co-founder, principal and managing partner of VN Capital Management LLC, the manager of VN Capital. The board of directors of Big Rock approved the second-lien financing (with Mr. Noone abstaining) on the recommendation of the directors independent of VN Capital, and determined that the second-lien financing is on reasonable commercial terms that are not less advantageous to Big Rock than if the loan thereunder was obtained from a person dealing at arm's length with Big Rock.

Big Rock also announces that it has concluded the process initiated in March, 2023, where it evaluated potential strategic alternatives with a view to enhancing shareholder value. The strategic review was led by a special committee of the board of directors of the corporation that worked with Acumen Capital Finance Partners Ltd., which acted as a strategic adviser to the special committee. The special committee reviewed the corporation's operations and investigated alternative courses of actions, including, but not limited to, cost reductions, restructuring, refinancing and potential business combinations.

"We would like to thank members of the special committee as well as our executive group and our strategic adviser, Acumen Capital Finance Partners Ltd., for their contributions to the strategic review," said chairman Stephen Giblin. "The organizational adjustments and commitment to continuing to develop and improve results from both our branded and co-packing businesses should continue to deliver growth in profitability moving forward."

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings -- Bitter, Porter and Traditional Ale -- forged an industry at a time heavy on easy-drinking lagers and light on flavour. Today, the company's extensive portfolio of signature beers, continuing seasonal offerings, six ciders (Rock Creek Cider series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps Big Rock at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alta., Vancouver, B.C., and Toronto, Ont. Big Rock trades on the Toronto Stock Exchange under the symbol BR.

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