Mr. Obie Strickler reports

GROWN ROGUE'S NEW JERSEY AFFILIATE CELEBRATES ONE YEAR OF SALES

Grown Rogue International Inc. has provided an update to the investment community on the progress of its New Jersey affiliate, ABCO Garden State LLC, as it marks the one-year anniversary of its first sale on Dec. 11, 2024.

Over the past year, ABCO has continued to ramp production and sales from the first phase of its facility. Overall yields from phase 1 have progressed toward Grown Rogue's initial target of producing more than 500 pounds of flower per month. Over the last three months, ABCO has achieved full sell-through, with average monthly product sales now exceeding 600 pounds and well over 80 per cent of sales represented by branded, packaged product.

The company has seen significant demand and adoption of its value brand, Yeti, since officially introducing the brand to New Jersey customers in the summer. Monthly Yeti sales, including flower and prerolls, increased from approximately 96 pounds in June to approximately 203 pounds in November, reflecting growing consumer recognition and retailer support. Construction of phase 2 is under way and, once fully completed, is expected to increase production capacity to greater than 1,000 pounds per month.

"As we celebrate our first full year of sales in New Jersey, we have learned a great deal about the Northeast markets and the specific structural and consumer dynamics that exist in New Jersey," said Obie Strickler, chief executive officer of Grown Rogue. "The ramp has taken longer than we wanted, but we never wavered from our underlying philosophy that customers want great product at a great price, and we are built to deliver on that with prudent scale."

"As with any new facility, it has taken us a few turns to get fully into our groove, and it's exciting to see the team driving us toward Grown Rogue-level performance that supports full sell-through and brand development," Mr. Strickler continued. "Our sales and operations team is energized to have phase 2 under way, and we believe this next phase of expansion will allow us to deepen our presence in the New Jersey market while staying true to our disciplined approach to capital deployment."

"I'm proud of our team's adaptability, and I'm particularly pleased because all of the experience gained here in New Jersey is going to serve us well as we expand into our next markets," Mr. Strickler added. "We are built to continuously improve, and what remains abundantly clear is that being a low-cost producer of craft quality product will work in any market."

About Grown Rogue International Inc.

Grown Rogue International 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 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, the company has built a scalable, capital-efficient platform designed to thrive in competitive markets. The company believes sustained excellence in cannabis flower production is the engine of the industry's supply chain -- and its competitive advantage.

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