Mr. Kip Woodward reports

THE KEG ROYALTIES INCOME FUND ANNOUNCES SPECIAL CASH DISTRIBUTION

The Keg Royalties Income Fund has declared a special cash distribution of eight cents per unit, payable to unitholders of record as at Dec. 31, 2023. The special cash distribution will be paid to unitholders on Jan. 31, 2024, and treated as an eligible dividend that will be included in the fund's Dec. 31, 2023, year-end for tax purposes.

"The strong same-store sales growth delivered by The Keg so far this year, coupled with the expected sales from a 53rd week of operation, generated significant incremental royalty income to the fund," said Kip Woodward, chairman of the fund. "We are pleased to share this incremental income with the fund's unitholders, in the form of this special cash distribution."

Keg Restaurants Ltd.'s fiscal year-end falls on the Sunday closest to Dec. 31, in any year, and, as a result of the floating year-end date, approximately every sixth fiscal year contains 53 operating weeks. The 2023 fiscal year contains 53 weeks of operation.

The fund is a limited-purpose, open-ended trust established under the laws of the Province of Ontario that, through The Keg Rights LP, a subsidiary of the fund, owns certain trademarks and other related intellectual property used by Keg Restaurants. In exchange for use of those trademarks, Keg Restaurants pays the fund a royalty of 4 per cent of gross sales of Keg restaurants included in the royalty pool.

With approximately 10,000 employees, over 100 restaurants and annual system sales approaching $700-million, Vancouver-based Keg Restaurants is the leading operator and franchiser of steakhouse restaurants in Canada, and has a substantial presence in select regional markets in the United States. Keg Restaurants continues to operate The Keg restaurant system, and expand that system through the addition of both corporate and franchised Keg steakhouses. Keg Restaurants has been named the No. 1 restaurant company to work for in Canada in the latest edition of Forbes Canada's best employers 2023 survey, securing third place in the overall ranking across all industries in the country.