Mr. Andrew Howard reports

DIAMOND ESTATES WINES & SPIRITS ANNOUNCES RECEIPT OF $750,000 LOAN FROM A RELATED PARTY, AND ISSUANCE OF DSUS

Diamond Estates Wines & Spirits Inc. today received a loan in the principal amount of $750,000 from a related party. The company intends to use the net proceeds of the loan for general working capital purposes.

The loan is unsecured, subordinated to the company's senior lender, bears interest at prime plus 1 per cent, and is repayable within 120 business days of being advanced.

The loan, by reason of being advanced by a related party to the company, is a related party transaction within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation and minority approval requirements, as the fair market value of the loan does not exceed 25 per cent of the company's market capitalization or $2.5-million. Further details will be provided in the company's material change report to be filed on SEDAR.

DSU issuance

The company also announces that it has issued deferred share units (DSUs) to its directors as of May 29, 2023. Under the DSU plan of the company, an aggregate of 285,980 DSUs have been issued by the company to non-executive directors in settlement of $105,812.50 of deferred directors' compensation. The DSUs are to be settled in common shares of the company when the director retires from all positions with the company.

About Diamond Estates Wines and Spirits Inc.

Diamond Estates is a producer of high-quality wines and ciders, as well as a sales agent, for over 120 beverage alcohol brands across Canada. The company operates five production facilities, four in Ontario and one in British Columbia, that produce predominantly VQA wines under such brand names as 20 Bees, Creekside, EastDell, Lakeview Cellars, Mindful, Queenston Mile, Shiny Apple Cider, Fresh, Proud Pour, Red Tractor, Seasons, Serenity, Persona and Backyard Vineyards.

Through its commercial division, Trajectory Beverage Partners, the company is the sales agent for many leading international brands in all regions of the country, as well as being a distributor in the western provinces. These recognizable brands include Josh wines from California, Fat Bastard, Meffre, Pierre Chavin and Andre Lurton wines from France, Brimincourt champagne from France, Merlet and Larsen cognacs from France, Kaiken wines from Argentina, Blue Nun and Erben wines from Germany, Calabria Family Estate wines from Australia, Saint Clair Family Estate wines from New Zealand, Redemption bourbon and rye whiskies from the United States, Gray Whale gin from California, Storywood and Cofradia tequilas from Mexico, Magnum cream liqueur from Scotland, Talamonti and Cielo wines from Italy, Catedral and Cabeca de Toiro wines from Portugal, Waterloo beer and radlers from Canada, Landshark lager from the United States, Edinburgh gin, Tamdhu, Glengoyne and Smokehead single-malt Scotch whiskies from Scotland, Islay Mist, Grand MacNish and Waterproof whiskies from Scotland, C. Mondavi & Family wines, including C.K Mondavi and Charles Krug from Napa, Wize spirits and Hounds vodka from Canada, Bols vodka from Amsterdam, Koyle Family wines from Chile, and Pearse Lyons whiskies and gins from Ireland.