Mr. Andrew Howard reports

DIAMOND ESTATE WINES & SPIRITS INC. ANNOUNCES COLLABORATION WITH RENAISSANCE WINE MERCHANTS

Diamond Estates Wines & Spirits Inc., through its commercial division, Trajectory Beverage Partners, has made a significant development that will strengthen its Western Canadian business. The company has entered into a business collaboration agreement with Renaissance Wine Merchants Ltd. to augment each parties' capabilities in Manitoba, Saskatchewan, Alberta and British Columbia. Pursuant to this agreement, Trajectory Beverage Partners and Renaissance have agreed to manage their western sales forces under the leadership of Renaissance for the sale and marketing of all the beverage alcohol products that Trajectory Beverage Partners currently represents or for which it will gain representation in the territory.

The collaboration seeks to leverage the expertise and resources of both companies to provide Diamond Estates' suppliers with a more comprehensive and competitive suite of services. The Renaissance management team will combine the sales forces of both parties and lead a bolstered team in close partnership with Trajectory's national supplier activities.

The agreement commences Nov. 13, 2023, and will continue for an initial six-month period, renewing automatically for subsequent six-month terms unless cancelled in accordance with its terms.

In addition to the agreement, the two companies have signed a memorandum of understanding whereby they agree to discuss the opportunity for a business combination of Trajectory and Renaissance. Initial conversations to date confirm shared core missions and values dedicated to delivering superior results for their customers, employees, stakeholders and shareholders. A potential merger would create material synergies and improve the standing and reach of the combined national business.

Diamond Estates will continue to keep stakeholders informed about the progress of both the agreement and discussions between the parties concerning a potential business combination.

In addition, in accordance with the terms of the agreement, Trajectory can also exercise a put option before May 1, 2024, to sell its agency business in the territory to Renaissance. The purchase price would be determined pursuant to a formula that takes into account trailing gross margin and commission revenue, which purchase price the company currently estimates would be an amount between $3-million and $4-million. It should be noted that this is an estimate only, that the purchase price cannot be determined with any degree of certainty at this time and there is no guarantee that the actual purchase price will be within this estimate.

"We are thrilled about going into business with Renaissance Wine Merchants," said Andrew Howard, president and chief executive officer of Trajectory. "Our two companies share a common vision, culture and mutual respect for the accomplishments each company brings to the party. This relationship will make us both stronger and more capable -- a great foundation for a potential merger."

Jon Watson, director of Renaissance, added: "We are excited about the opportunities this relationship will bring. With sales coverage in every province, combined with strong sales leadership and experience in each region, a potential merger would satisfy our search for national capabilities. We believe that our combined strengths will enable us to better serve our customers and partners across Canada."

About Diamond Estates Wines & 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 and Backyard Vineyards.

Through its commercial division, Trajectory, the company is the sales agent for many leading international brands in all regions of the country, as well as a distributor in the western provinces. These recognizable brands include 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 and McWilliams wines from Australia, Saint Clair Family Estate wines and Yealands Family wines from New Zealand, Storywood and Cofradia tequilas from Mexico, Maverick Distillery spirits (including Tag vodka and Barnburner whisky) from Ontario, 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, Hounds vodka and Valley of Mother of God gins from Canada, Bols vodka from Amsterdam, Collective Arts beers, spirits and RTDs from Ontario, Koyle Family wines from Chile, and Pearse Lyons whiskies and gins from Ireland.

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