Mr. Obie Strickler reports

GROWN ROGUE REPORTS SECOND QUARTER 2023 RESULTS, RECORD OPERATING CASH FLOW AND FREE CASH FLOW

Grown Rogue International Inc. has released its fiscal second quarter 2023 results for the three months ended April 30, 2023. All financial information is provided in U.S. dollars unless otherwise indicated.

Management commentary

"This was another exciting quarter with record operating cash flow and free cash flow as we continue to see the tremendous execution exhibited by our team," said Obie Strickler, chief executive officer of Grown Rogue. "Our $6-million-plus of revenue was a new company record by more than 18 per cent, highlighting our continued focus on producing high-quality cannabis that delights our team and customers. We continue to generate substantial free cash flow margins and are focused on using that capital to bring our products to new markets and expand our consumer base. We are really excited about our recently announced agreement with Goodness Growth to expand our cultivation expertise into additional markets and are encouraged by the positive feedback we are seeing and hearing from those markets. In Q2, we recorded over $270,000 in revenue from this agreement, which was more than anticipated as the agreement was not definitive until after the quarter ended. I'm pleased with the success we are seeing so far in Q3 and anticipate strong growth both in Minnesota and from the launch of adult-use sales in Maryland on July 1," continued Mr. Strickler. "Our relentless focus on genetics continues to reap benefits in both Oregon and Michigan as we take pride in being tastemakers in the industry. We are proud to be launching new proprietary genetics combined with strain-specific packaging in Michigan as well as craft prerolls in Oregon in the coming weeks. We believe that our philosophy and practice of constant iteration and improvement will engender more customer trust and deepen the relationship we have with our existing fans," Mr. Strickler continued.

"Regarding capital allocation, we continue to focus on producing free cash flow to best position ourselves to meet our balance sheet obligations while being prepared for new market opportunities, using only a modest amount on increased working capital. With our internal cash generation and our cash position at the highest ever reported, we feel confident in our ability to take advantage of high-quality opportunities as they arise.

"I want to thank the entire Grown Rogue team for their continued efforts and look forward to updating shareholders on our new market efforts in due course."

Oregon market highlights:

• No. 1 flower brand for eight consecutive quarters, according to LeafLink's MarketScape data;
• Focusing on increasing market share by launching craft preroll products in Q3 2023;
• Total Oregon state indoor wet weight harvested decreased 8 per cent year-over-year, according to the Oregon Liquor and Cannabis Commission, while Grown Rogue indoor wet weight harvested increased by 15 per cent year-over-year.

Michigan market highlights:

• Pricing per ounce of flower has increased for four straight months, according to the Michigan Cannabis Regulatory Agency;
• Launching strain-specific packaging in Q3 2023, and anticipate increases in both pricing and product mix of Grown Rogue's prepackaged products.

Michigan operations are through Golden Harvests LLC.

About Grown Rogue International Inc.

Grown Rogue International is a craft cannabis company focused on delighting customers with premium flower and flower-derived products at fair prices. Its roots are in Southern Oregon where it has demonstrated its capabilities in the highly competitive and discerning Oregon market and, more recently, it successfully expanded its platform to Michigan. The company combines its passion for product and value with a disciplined approach to growth, prioritizing profitability and return on capital. Grown Rogue's strategy is to pursue capital-efficient methods to expand into new markets, bringing its craft quality and value to more consumers. The company also continues to make modest investments to improve its outdoor craft cultivation capabilities in preparation for eventual interstate commerce.

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