Mr. Obie Strickler reports

GROWN ROGUE REPORTS THIRD QUARTER 2023 RESULTS, RECORD REVENUE WITH 48% YEAR-OVER-YEAR GROWTH

Grown Rogue International Inc. has released its fiscal third quarter 2023 results for the three months ended July 31, 2023. All financial information is provided in United States dollars unless otherwise indicated.

Management commentary

"We are pleased to announce another quarter with record revenue, operating cash flow and free cash flow. Our $6.3-million in revenue continues an upward trajectory with a sequential increase of 5 per cent, after last quarter's 18-per-cent increase over our previous record quarter," said Obie Strickler, chief executive officer of Grown Rogue.

"Our year-over-year revenue and EBITDA [earnings before interest, taxes, depreciation and amortization] growth of 48 per cent and 79 per cent, respectively, shows our commitment to controlling costs and our focus on producing high-quality cannabis products that delight our team and customers. We are proud to recently launch new strain-specific packaging in Michigan and craft prerolls in Oregon, and are pleased with the initial traction in both, led by our improvements in our genetic quality and quantity over the past 12 months.

"We believe our focus on genetics, and our strength in branding and distribution, will allow us the opportunity to be market share leaders in new categories as we engender more customer trust and deepen the relationship we have with our existing fans," continued Mr. Strickler.

"Our team continues to lean into our partnership with Goodness Growth and we have been very pleased with our progress, particularly how quickly our team is expanding their abilities and improving processes. An important 2023 objective for us was mapping our talent against more assets and this partnership has done nothing but show the readiness of our team.

"Finally, it was especially rewarding to complete the convertible debenture financing in July to further strengthen our balance sheet, particularly in such a challenging credit market. The trust and commitment from our existing and new shareholders show the belief they have in our business plan and their excitement around new opportunities that are available to us. I want to thank the entire Grown Rogue team for their continued efforts and look forward to updating investors on our new market efforts shortly."

Oregon market highlights (millions):

• No. 1 flower brand for nine consecutive quarters, according to LeafLink's MarketScape data;
• Launched a 10-pack craft preroll product during the quarter and are pleased with the initial traction;
• September-to-date moved up to No. 2 total wholesaler in the state from No. 3, according to MarketScape;
• Indoor wet-weight harvested in the state of Oregon YTD (year-to-date) through August decreased 3.5 per cent year-over-year, and outdoor wet-weight YTD decreased 43 per cent year-over-year, according to the Oregon Liquor and Cannabis Commission.

Michigan market highlights (millions):

• Launched strain-specific packaging during the quarter, and have seen an increase in both pricing and higher product mix of the company's prepackaged products;
• Sales in Michigan in July were a new record at $277-million, making it the second-largest market in the United States;
• Pricing per ounce of flower in Michigan in July was the highest since October, 2022, according to the Michigan Cannabis Regulatory Agency.

Michigan operations are through Golden Harvests LLC.

About Grown Rogue International Inc.

Grown Rogue International is a craft cannabis company operating in Oregon and Michigan, and in Minnesota and Maryland through an advisory agreement with Goodness Growth Holdings Inc. Grown Rogue is 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, Grown Rogue successfully expanded its platform to Michigan. Grown Rogue combines its passion for product and value with a disciplined approach to growth, prioritizing profitability and return on capital. Its strategy is to pursue capital-efficient methods to expand into new markets, bringing its craft quality and value to more consumers. Grown Rogue also continues to make modest investments to improve its outdoor craft cultivation capabilities in preparation for eventual interstate commerce.

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