Mr. Paul Jewer reports

HIGH LINER FOODS SECURES RUBICON SETTLEMENT AGREEMENT

High Liner Foods Inc. has finalized a settlement agreement in the legal proceedings the company initiated against Brian Wynn for making false representations and warranties in connection with the sale of Rubicon Resources LLC.

In accordance with the terms of the agreement, just over 2.4 million shares of the company issued in connection with the acquisition of Rubicon will be cancelled, resulting in a 7.36-per-cent reduction of the total approximately 33 million shares outstanding. Based on a closing share price of $12.70 on March 1, 2024, and an exchange rate of 1.3555 with the U.S. dollar, the cancelled shares are worth approximately $22.49-million (U.S.).

In addition, as part of the settlement agreement, $5.65-million (U.S.) will be paid collectively by Mr. Wynn and the other settling Rubicon vendors to reimburse funds received from a previous insurance claim settlement on representation and warranty insurance the company procured to provide coverage of breaches of representation made by Rubicon and Mr. Wynn when Rubicon was acquired.

Paul Jewer, president and chief executive officer of High Liner, said: "Our efforts over the past four years to ensure High Liner Foods and its shareholders received compensation in this matter have paid off. We are pleased to put the matter behind us and that our shareholders will immediately and directly benefit from the negotiated terms."

About High Liner Foods Inc.

High Liner is a leading North American processor and marketer of value-added frozen seafood. High Liner's retail branded products are sold throughout the United States and Canada under the High Liner, Fisher Boy, Mirabel, Sea Cuisine and Catch of the Day labels, and are available in most grocery and club stores. The company also sells branded products to restaurants and institutions under the High Liner, Mirabel, Icelandic Seafood and FPI labels, and is a major supplier of private label value-added seafood products to North American food retailers and foodservice distributors. High Liner is a publicly traded Canadian company, trading under the symbol HLF on the Toronto Stock Exchange.

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