Mr. David Kinder reports

BIG ROCK BREWERY INC. ANNOUNCES FIRST QUARTER 2024 RESULTS AND BOARD CHANGES

Big Rock Brewery Inc. has released its financial results for the three months ended March 31, 2024. The company has appointed Linda A. Thomas and George Croft as directors of the corporation; Alanna McDonald has resigned from the board of directors of Big Rock.

Financial Summary

For the three months ended March 31, 2024, compared to the three months ended March 31, 2023, the corporation reported:

• wholesale sales volumes (beer, ready-to-drink beverages and cider) down 4.2% to 32,352 hectolitres ("hl") compared with 33,778 hl;
• net revenue decreased to $8.6 million from $10.5 million as a result of reduced co-packing activity;
• operating loss increased to ($2.3 million) from ($0.1 million);
• net loss increased to ($3.1 million) from ($0.3 million); and
• Adjusted EBITDA decreased to ($1.5 million) from $0.7 million.

In 2023 Big Rock embarked on a strategy of, where possible, balancing production and sales between quarters to allow for a reduction of operating costs. Reduced co-packing contract volumes made this difficult during the last half of 2023 carrying through the first quarter of 2024. Management continues to work with co-packing partners for the purpose of introducing volumes and expects to be successful in achieving its objectives by year end. This strategy supports Big Rock's long-term vision to become Canada's largest and most stable independent brewer.

Big Rock remains focused on product innovation and development in the premium alcoholic and non-alcoholic beverage categories to better align with consumer demand. Our non-alcoholic beer, "Pacer,", introduced in the fourth quarter of 2023, continues to exceed expectations. In the first quarter of 2023, our innovation efforts resulted in additions to our premium beer category ("Brightside", a new easy-drinking lager and "Unwinder" a lighter hazy pale ale), a raspberry wheat ale, a series of summer seasonal beers and a tequila-based beverage developed in conjunction with a key co-packing partner. Several other product innovation releases are planned for the balance of 2024.

During the first quarter of 2024, Canadian domestic beer sales volumes were reported down by 3.1%1 compared with the same period in 2023. Despite outperforming this benchmark during2023, Big Rock's domestic beer volumes in Q1 of 2024 were down 7.1% versus the same quarter in 2023. While beer volumes declined, wholesale revenues from all products (beer, cider, non-alcoholic and ready to drink beverages), exclusive of contract/co-packing revenues, were 2.3% higher than in the same period in 2023, illustrating the results of efforts to align with consumer demand.

During first quarter of 2024, traditionally the second-weakest quarter of the year for the corporation's financial performance, Big Rock's Adjusted EBITDA was ($1.5 million), representing a shortfall of $2.2 million versus the $0.7 million earned during the same quarter in 2023. The shortfall resulted from the decline in contract/co-packing volumes and was both anticipated and budgeted for.

During the quarter, Big Rock introduced the following, to strengthen its operations and provide for financial stability:

on January 8, 2024, David Kinder, a veteran of the beverage industry, was appointed President and Chief Executive Officer of the corporation, replacing Mr. Stephen Giblin who had taken on the role on an interim basis; and

in January of 2024, the corporation announced the addition of a $4.2 million tranche to its existing $4.3 million second lien financing (the "Second Lien Financing") with VN Capital, a principal shareholder of Big Rock.

Board Changes

Big Rock is pleased to announce that the following individuals have agreed to join the Board, effective immediately:

Linda Thomas - During her 30-year career, Linda has acquired experience in telecommunications, hardware and software technology, consumer packaged goods, and the regulated beverage alcohol industry (Molson Coors Beverage Company), in companies with annual revenues ranging from $500 million to $80 billion. Her work in finance, strategy, product management, marketing, sales and logistics has given her valuable insights across the spectrum of core business functions. Linda has led teams ranging from 5 to 150 personnel in territories that range in breadth from Western Canada to worldwide organizations. A resident of Calgary since 1993, Linda has helped organizations achieve success in mature businesses, as well as those experiencing extreme growth and also in decline.

George Croft - With a career that spans more than twenty years in senior management roles in the brewing industry in Canada, George has a deep understanding of the challenges and opportunities within this sector. His tenure as President and CEO of Waterloo Brewing Company was particularly transformative, steering the company from a loss-making position to sustainable profitability, culminating in its acquisition by Carlsberg Group in March 2023. George's experience extends to general management, board governance, leadership and performance management, as well as competitive strategy and execution. He is also well-versed in marketing and sales, and mergers and acquisitions, having held executive leadership roles at Labatt Breweries of Canada and Lakeport Brewing Income Fund. As a Chartered Director and a qualified Management Accountant, George is committed to leveraging his industry knowledge and extensive network to assist clients and boards in achieving their business objectives. Having served on numerous industry boards and recognized as an Ontario Ernst & Young Entrepreneur of the Year finalist, he is equipped to provide strategic insights that drive performance.

"We are excited at the prospect of Ms. Thomas and Mr. Croft joining our Board," noted President and Chief Executive Officer of the corporation David Kinder. "Each has roots in Alberta and brings a unique skillset that will help our Board work with and augment Management to grow Big Rock.

Mr. Kinder commented further: "While our performance during the first quarter of 2024 fell short of the strong results of the first quarter of 2023, this was not a surprise to us and our results largely met budget. We continue to work with prospective co-packing partners to improve volumes and put in place arrangements that will allow us to both achieve our 2024 budget and exceed the $2.2 million in Adjusted EBITDA generated during 2023."

Big Rock also announces that Alanna McDonald has resigned from the Board in order to focus on her full-time responsibilities.

Mr. Kinder also noted, "We would like to thank Alanna for her significant contributions to the Board since joining in 2018. Her perspective and insights have been particularly valuable in assisting Big Rock."

Additional Information

The unaudited condensed interim consolidated financial statements of the corporation and the corporation's Management Discussion & Analysis for the quarter ended March 31, 2024 dated May 14, 2024, can be viewed on Big Rock's website at www.bigrockbeer.com and on SEDAR+ at www.sedarplus.ca under Big Rock Brewery Inc.

Big Rock is also pleased to announce that the Annual Meeting of Big Rock shareholders is expected to be held on June 12 at 2:00 p.m. (Mountain Standard Time). Further details of the Annual Meeting will follow in due course.

This press release contains the term "Adjusted EBITDA". Adjusted EBITDA is a non-GAAP financial measure that the corporation uses to measure operating performance and borrowing capacity. The calculation of Adjusted EBITDA is a non-GAAP financial measure, whose nearest GAAP measure is net income, or net loss, as applicable, with the reconciliation between the two as follows:

About Big Rock Brewery Inc.

In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings - Bitter, Porter and Traditional Ale - forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider(TM) series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit www.bigrockbeer.com

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