Mr. Murray Mullen reports

MULLEN GROUP LTD. TO ACQUIRE CONTAINERWORLD FORWARDING SERVICES INC.

Mullen Group Ltd. has entered into a letter of intent (LOI) to acquire British Columbia-based ContainerWorld Forwarding Services Inc. and its operating subsidiaries. The LOI contemplates standard due diligence and the execution of a purchase and sale agreement, both of which have been initiated. The transaction is scheduled to close in the second quarter of 2024, subject to regulatory approval and final closing conditions.

ContainerWorld is a Canadian logistics company that offers integrated supply-chain solutions to the alcoholic beverage and hospitality industries. Through a network of customs and sufferance bonded warehouses, ContainerWorld provides inventory management, freight forwarding, warehousing and distribution services to international and domestic customers in the provinces of British Columbia and Ontario.

"The addition of ContainerWorld demonstrates our continued strategic focus of diversifying service offerings into verticals and markets that we consider as great long-term opportunities. Globally, alcoholic beverages is a trillion-dollar industry, and here in Canada, it is a multibillion-dollar industry that is expected to grow as the Canadian population grows. ContainerWorld is a leading integrated logistics provider to international and domestic wine, beer and spirits producers that are looking for a safe and reliable customs bonded service provider in Canada. This acquisition further expands our operations in the provinces of British Columbia and Ontario, home to 50 per cent of Canada's population, and will add over one million square feet of warehousing space to Mullen Group," said Murray K. Mullen, chair and senior executive officer.

Mr. Mullen added: "We are delighted to have ContainerWorld join our expanding logistics network. It is an excellent company with a long history, traits we consider important to our investment strategy. Founded by Dennis Chrismas, ContainerWorld has grown to be one of the largest alcoholic-beverage logistics companies in Canada. I am also pleased to announce that Dennis Chrismas will continue in his current role and will oversee the business as we transition ContainerWorld from a private company to being part of a large public company."

ContainerWorld will operate within Mullen Group's logistics and warehousing segment, and it is expected to generate annualized revenue of approximately $150-million. Mullen Group expects operating income before depreciation and amortization (OIBDA) margins to be consistent with the L&W segment, once it has implemented its disciplined business practices, process improvements and technology. Mullen Group will be financing the transaction from its existing credit lines.

About Mullen Group Ltd.

Mullen Group is one of Canada's largest logistics providers. Its network of independently operated businesses provides a wide range of service offerings, including less-than-truckload, truckload, warehousing, logistics, transload, oversized, third party logistics and specialized hauling transportation. In addition, Mullen Group provides a diverse set of specialized services related to the energy, mining, forestry and construction industries in Western Canada, including water management, fluid hauling and environmental reclamation. The corporate office provides the capital and financial expertise, legal support, technology and systems support, shared services and strategic planning to its independent businesses.

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