Mr. Charlie Bachtell reports

CRESCO LABS TO OPERATE KENTUCKY'S LARGEST MEDICAL CANNABIS CULTIVATION LICENSE

Cresco Labs Inc. has signed a management services agreement with a Tier 3 cultivation licence in Kentucky. The agreement entitles Cresco Labs to manage and operate a cultivation facility with up to 25,000 square feet of canopy, marking a significant milestone for the company and establishing Cresco Labs as one of only two operators of Kentucky's coveted Tier 3 cultivation licences.

"I look forward to showing Kentucky residents why Cresco Labs' portfolio is the most popular choice in both medical markets like Pennsylvania and adult-use markets like Illinois. The cultivation licence allows for the construction of a state-of-the-art cultivation facility with up to 25,000 square feet of canopy, enabling us to deliver the quality and scale we are known for," said Charlie Bachtell, chief executive officer of Cresco Labs. "We've spent the last two years focused on solidifying the core and increasing our free cash flow. Kentucky is our first of many opportunities to reinvest that free cash flow back into high-ROIC [return on invested capital] growth initiatives as we continue expanding into new markets."

Kentucky's medical cannabis program, launched on Jan. 1, 2025, represents a significant milestone for the state. The program includes a maximum of 115,000 square feet of approved canopy space and 48 retail licences, with industry analysts forecasting the market to generate over $135-million in revenue by 2026, growing to over $228-million by 2028. The cultivation licence positions the company at the forefront of this burgeoning market, with the opportunity to shape its growth and success.

About Cresco Labs Inc.

Cresco Labs' mission is to normalize and professionalize the cannabis industry through a CPG (consumer packaged goods) approach to building national brands and a customer-focused retail experience while acting as a steward for the industry on legislative and regulatory-focused initiatives. As a leader in cultivation, production and branded product distribution, the company is leveraging its scale and agility to grow its portfolio of brands, including Cresco, High Supply, FloraCal, Good News, Wonder Wellness Co., Mindy's and Remedi, on a national level. The company also operates highly productive dispensaries nationally under the Sunnyside brand that focus on building patient and consumer trust and delivering continuing education and convenience in a wonderfully traditional retail experience. Through year-round policy, community outreach and SEED (social equity and educational development) initiative efforts, Cresco Labs embraces the responsibility to support communities through authentic engagement, economic opportunity, investment, work force development and legislative initiatives designed to create the most responsible, respectable and robust cannabis industry possible.

We seek Safe Harbor.