Mr. Andrew Howard reports

DIAMOND ESTATES WINES & SPIRITS ANNOUNCES UPDATE ON PROPOSED NON-BROKERED FINANCING

Diamond Estates Wines & Spirits Inc. has provided an update in respect of its proposed financing and debt settlement with Lassonde Industries Inc., previously announced by the company on Aug. 17, 2023.

There have been no material changes to the terms of the financing or the settlement previously announced. The company received shareholder approval for the financing and the settlement at its annual shareholders meeting held on Sept. 6, 2023. The company is working with Lassonde to complete the financing and the settlement by Nov. 14, 2023. The private placement involves the issuance of 20,062,937 common shares of the company to Lassonde, at an issue price of 45 cents per common share, for an aggregate purchase price of approximately $9-million. Lassonde will pay the subscription price through the payment of $8.25-million in consideration for 18,333,334 common shares of the company and the settlement, which will involve the conversion of the $750,000 principal amount (plus accrued and unpaid interest) owing under the advance agreement between the company and Lassonde dated May 30, 2023, into 1,729,603 common shares of the company.

The financing and the settlement remain subject to the final acceptance of the TSX Venture Exchange. The securities issued pursuant to the financing and the settlement will be subject to a four-month hold period under applicable Canadian securities laws.

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 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 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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