Mr. Obie Strickler reports

GROWN ROGUE REPORTS FISCAL 2023 RESULTS

Grown Rogue International Inc. has released its audited 2023 results for the 12 months ended Oct. 31, 2023. All financial information is provided in U.S. dollars unless otherwise indicated.

Highlights:

• Revenue of $23.4-million, compared with $17.8-million in 2022, an increase of 32 per cent;
• Operating cash flow (OCF), before changes in working capital (WC), of $6.4-million, compared with $3.2-million in 2022, an increase of 102 per cent;
• Free cash flow (FCF) of $2.8-million, after maintenance and growth investments of $3.5-million;
• Announced a strategic advisory agreement with Goodness Growth Holdings to focus on improving quality, yields and efficiencies in its Minnesota and Maryland operations;
• Announced entry into the attractive New Jersey market, with construction nearing completion and on track to be completed in Q2 2024, with sales expected in Q3 2024;
• Augmented New Jersey presence with a retail investment in collaboration with Bengal Capital to invest in the operations of an adult-use dispensary in West New York, N.J.;
• Closed three tranches of convertible debentures for total gross proceeds of $8-million.

Management commentary

"We are pleased to announce another record year at Grown Rogue, highlighted by continued strong performance in our core markets of Oregon and Michigan and in our new advisory agreement with Goodness Growth. Our year-over-year revenue and operating cash flow growth of 32 per cent and 102 per cent, respectively, shows our ability to profitably scale our business, our commitment to controlling costs through the growth cycle and our focus on high-quality cannabis products that delight our consumers," said Obie Strickler, chief executive officer of Grown Rogue. "Our operational performance, combined with our ability to raise $8-million in reasonably priced convertible debt, underscores my confidence in our ability to be successful in New Jersey and beyond.

"We are pleased with the construction progress in New Jersey and continue to believe this is an incredibly compelling return on our capital and capabilities. We are particularly excited to soon be bringing Oregon-quality cannabis to the great people of New Jersey.

"We also recently announced a retail investment in New Jersey to augment our cultivation facility in that market. We are excited to be collaborating with Nile and Bengal in this investment to allow us to expand outside of our core competency without taking too much capital or bandwidth and continue to look for similar opportunities to sponsor aligned New Jersey retail in the future. This allows us access to shelf space for our branded flower products and earn additional profits within the highly attractive New Jersey market while continuing our meticulous focus on producing affordable, craft-quality flower," continued Mr. Strickler.

"Our 2024 corporate objectives remain unchanged from 2023: continued operational improvements, launching in New Jersey, and identifying and executing our next expansion project. We continue to refine our production, genetics and efficiencies in our markets, drive increases in quality and yield for Goodness Growth, and gain market share in our new packaged products in Michigan and Oregon. We are also looking to expand into at least one additional market should we find an opportunity that fits our criteria, and we are in some advanced discussions on this front.

"I want to personally thank the entire Grown Rogue team, our shareholders and our customers for the continued support to help Grown Rogue achieve our goal of becoming the first nationally recognized craft cannabis company in the U.S."

Oregon market highlights:

• No. 1 flower brand and No. 3 brand over all in 2023, according to LeafLink's MarketScape data, and No. 1 flower brand for 10 consecutive quarters;
• Total harvested wet weights for the state of Oregon decreased 0 per cent year over year for indoor and 3 per cent year over year for mixed and increased 1 per cent year over year for outdoor, according to the Oregon Liquor and Cannabis Commission (OLCC) for calendar year 2023;
• Increased Oregon sun-grown capacity with a lease option of 35 acres in Medford;
• Launched Grown Rogue and Yeti branded preroll packs that are exceeding internal expectations.

Michigan market highlights:

• Released strain-specific packaging and Yeti prerolls that have pushed prepackaged product mix to 40 per cent of sales in Q4 and have led to an increase in pricing and brand awareness;
• Sales in Michigan in December, 2023, was a new record at $280-million and sales in 2023 were over $3-billion -- the second market in the United States to reach that milestone;
• Grown Rogue exercised its option and acquired 87 per cent of Canopy Management LLC, resulting in its controlling interest in Golden Harvests LLC;
• Michigan operations are through Golden Harvests.

About Grown Rogue International Inc.

Grown Rogue is a craft cannabis company operating in Oregon, Michigan, Minnesota, Maryland and New Jersey, focused on delighting customers with premium flower and flower-derived products at fair prices. The company's roots are in southern Oregon, where it has proved its capabilities in the highly competitive and discerning Oregon market. The company's passion for quality product and value, combined with a disciplined approach to growth, prioritizes profitability and return on capital without sacrificing quality. The company's strategy is to pursue capital-efficient methods to expand into new markets, bringing craft-quality product at fair prices to more consumers. The company also continues to make modest investments to improve outdoor craft cultivation capabilities in preparation for eventual interstate commerce.

We seek Safe Harbor.