Mr. Obie Strickler reports

GROWN ROGUE SECURES CULTIVATION FACILITY IN MINNESOTA

Grown Rogue International Inc. has entered into a long-term lease for a cultivation facility in the greater Minneapolis metropolitan area that has received local approval for cannabis cultivation.

The facility, an approximately 109,000-square-foot building located in Fridley, Minn., was acquired by Rainbow WBSE MN LLC (the landlord) for approximately $75 per square foot, and the company has entered into a long-term lease with the landlord at a monthly base rent of 73 cents per square foot. The facility recently secured a conditional-use permit for cannabis cultivation and is expected to support a phased buildout of up to 30,000 square feet of flower canopy, which reflects the maximum indoor flower canopy permitted in Minnesota. Construction of phase I, approximately 10,000 square feet of flowering canopy and associated support infrastructure, is expected to commence in early 2026, with first product anticipated in early 2027.

"Rainbow Realty Group is pleased to partner with Grown Rogue on this flagship Minnesota cultivation project," said Kyle Shenfeld, chief executive officer of Rainbow Realty Group. "We have been impressed by their track record as a disciplined, low-cost producer of craft-quality flower in competitive markets, and we believe this facility is well positioned to serve the growing Minnesota market as adult-use sales develop."

Wendy Berger, chief executive officer of WBSE, added, "We are excited to play a role in Grown Rogue's continued growth as the company expands into this dynamic market."

"We appreciate Rainbow's support in partnering with us on this opportunity; they have been great to work with as we secured the facility and the conditional-use permit," said Obie Strickler, chief executive officer of Grown Rogue. "We are pleased to have secured a building at an affordable rate, with ample power, that gives us the flexibility to expand to the current maximum allowed flower canopy in Minnesota of 30,000 square feet. We are highly conscious of our long-term occupancy costs, and, between the structure of the lease and our decision to fund the majority of tenant improvements from our balance sheet, we are confident we can be a low-cost producer of craft-quality cannabis for Minnesota customers.

"Consistent with the Grown Rogue way, we expect to develop the facility in phases that align balance sheet risk with demonstrated sell-through," Mr. Strickler continued. "At the same time, the natural optionality to scale up to approximately 30,000 square feet of flower canopy, approximately double the flower canopy in our existing markets, gives us a more aggressive upside path in Minnesota if market conditions support it."

"Securing this location on favourable terms is the first tangible milestone for the Minnesota project that we are pursuing in collaboration with the licence holder, Christian Stiers, Grown Rogue's national cultivation director," said Josh Rosen, chief strategy officer of Grown Rogue. "Through our prior work with Vireo Growth, we have developed a deep familiarity with the Minnesota market, its regulatory framework and what it takes to operate efficiently there. We believe this metropolitan Minneapolis location positions us not only to serve adult-use customers across the region but also to eventually accommodate complementary subtenants as the market expands and regulations allow. We look forward to providing updates on future milestones as this project develops."

The company has executed definitive agreements, with Mr. Stiers governing the parties' respective interests in the Minnesota project, including a sublease of the cultivation facility and a management services agreement, the latter of which remains subject to regulatory approval. Details of these arrangements, including any related party considerations, are expected to be disclosed in the company's continuous disclosure documents and other regulatory filings in accordance with applicable securities laws. All agreements were executed Dec. 5, 2025.

About Grown Rogue International Inc.

Grown Rogue is a flower-forward cannabis company rooted in Oregon's Rogue Valley, a region known for its deep cannabis heritage and commitment to quality. With operations in Oregon, Michigan and New Jersey -- and expansion under way in Minnesota and Illinois -- Grown Rogue specializes in producing designer-quality indoor flower. Known for exceptional consistency and care in cultivation, the company's products are valued by retailers, budtenders and consumers alike.

By blending craft values with disciplined execution, Grown Rogue has built a scalable, capital-efficient platform designed to thrive in competitive markets. Grown Rogue believes sustained excellence in cannabis flower production is the engine of the industry's supply chain -- and the company's competitive advantage.

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