Ms. Allison Radford reports

RUM REPORTS A 36 per cent INCREASE TO NET INCOME FOR Q2 2023 CONSOLIDATED FINANCIAL RESULTS COMPARED TO Q2 2022

Rocky Mountain Liquor Inc. has released its financial results for the three-month and six-month periods ended June 30, 2023.

KEY OPERATING AND FINANCIAL HIGHLIGHTS

Three month comparison April 1 - June 30:

• Average sales per existing store increased by $18,951 per store or 5 per cent to $436,854 (2022 $417,903)
• Gross margin increased by 7 per cent to 24.2 per cent (2022 22.7 per cent)EBITDA increased by 76,024 or 17 per cent to $517,683 (2022 $441,659)
• Net income increased by $82,584 or 36 per cent to $312,689 (2022 $230,105)

Six month comparison January 1 - June 30:

• Average sales per existing store increased by $28,444 per store or 4 per cent to $772,143 (2022 $743,699)
• Gross margin increased by 4 per cent to 23.6 per cent (2022 22.6 per cent)
• EBITDA increased by $61,643 or 17 per cent to $424,878 (2022 $363,235)
• Net income increased by $3,913 or 21 per cent to $22,429 (2022 $18,516)
• Total credit facility use reduced by $1.8M or 33 per cent to $3.65M (2022 $5.45M)

Allison Radford, CEO commented "EBITDA for the three and six month period ending Q2 2023 outperformed 2022 by 17 per cent during a time in which inflation remains persistently high. This has allowed the Company to reduce debt by $1,796,880 in the last 12 months, improving the balance sheet position and helping offset interest costs from increases in the prime rate. The Company remains dedicated to reducing debt and related interest costs, while identifying opportunities for increasing shareholder value. For the remainder of 2023, Management remains focused on managing costs and growing The Great Canadian Liquor brand providing and exceptional customer experience while maintaining competitive pricing."

The following table summarizes key operating and financial metrics of the Company's financial performance for the three and six month periods ending June 30 2023 and 2022.

The Company sold an underperforming store in Q3 2022. Sales of existing stores for the three months ending June 30, 2023, are higher than the same period in 2022, with an increase to average sales per existing store of 5 per cent. The positive sales increase is primarily due to inflationary pressures on pricing. Sales of existing stores for the six month period ending June 30, 2023 are less than 1 per cent lower than the same period in 2022. For the first two months in 2022, restrictions were in place to on-site liquor consumption establishments resulting in a positive effect on retail liquor sales in that period. As restrictions were removed February 2022, there was subsequent decrease to retail liquor sales in the first quarter of 2023. Average sales per existing store increased by 3 per cent for the six month period ending June 30, 2023 over June 30, 2022 primarily due to inflationary pressures on pricing.

Margins are higher by 7 per cent at 24.2 per cent for the three months ending June 30, 2023, compared to 22.7 per cent for the same period in 2022, and higher by 4 per cent at 23.6 per cent for the six month period in 2023 compared to 22.6 per cent in 2022 as management has been focusing on its marketing, pricing, and promotional strategies to support profitable growth.

Detailed information in the form of the Company's interim consolidated financial statements and Management Discussion and Analysis are available under the Company's profile on SEDAR at www.sedar.com and also on the Company's website at www.ruminvestor.com. After accessing the website, please choose the "Investor Relations" tab to view Quarterly Reports.

About Rocky Mountain

Rocky Mountain owns 100 per cent of Andersons Liquor Inc. ("Andersons"), headquartered in Edmonton, Alberta, which now owns and operates 25 private liquor stores in that province, up from 18 stores since the Common Shares began trading in December 2008. It is listed on the TSX Venture Exchange (TSX-V:RUM).

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