Mr. Carlos Paz reports

CERES GLOBAL AG CORP. REPORTS FOURTH QUARTER AND YEAR-END RESULTS FOR FISCAL YEAR 2023

Ceres Global Ag Corp. has released its financial and operating results for the fourth quarter and year ended June 30, 2023. All amounts are in U.S. dollars unless otherwise noted.

Highlights for the fourth quarter and fiscal year ended June 30, 2023 (comparisons with the fourth quarter and fiscal year ended June 30, 2022):

• Gross profit for the quarter was $4.9-million, and $22.8-million for the year.
• Net loss for the year was $7.9-million and adjusted net income for the year was $3.1-million.
• The corporation handled and traded 98.5 million bushels, up 2 per cent from 96.6-million bushels in the prior year.
• In line with Ceres's long-term strategy of optimizing its footprint around core products and locations, the corporation completed the sale of its Port Colborne facility on Feb. 17, 2023. Total proceeds of the sale were $4-million, and the corporation recognized a gain on the sale of $1.2-million.
• On June 28, 2023, Ceres announced its exit from the wholesale distribution of its seed business to consolidate the corporation's focus on the core business.

Chief executive officer commentary

"Throughout the year, whether it was the unprecedent drought that affected South American crops in the second quarter, the ongoing conflict in Ukraine, or the dry weather across the U.S. Northern Plains and the Canadian Prairies in the fourth quarter, the Ceres team skillfully navigated volatile market conditions and effectively positioned the business to deliver another year of positive adjusted net income," commented Carlos Paz, president and chief executive officer of Ceres.

"Our farmer-direct origination strategy continues to show strong results, with volumes handled growing 2 per cent this year compared to the previous year despite challenging macro conditions. Key drivers of this growth were our joint ventures with Berthold Farmers Elevator, in North Dakota, and with Farmer's Cooperative Grain and Seed Association in Thief River Falls, Minn., where yearly volumes handled increased by 17 per cent and 177 per cent, respectively, exemplifying our ability to maximize our network of assets and deliver unique value to our customers."

Outlook

Mr. Paz added: "While markets have grown more accustomed to geopolitical risks associated with the conflict in Ukraine and volatility has dampened since the start of the war, the underlying risk remains, and the Ceres team is keeping an eye on any changes that can lead to higher levels of volatility returning to markets. Our team is also closely monitoring and evaluating the quality and quantity of crops in the Northern Plains and the Canadian Prairies to identify opportunities to maximize the margins of the capacity handled and best serve our end customers.

"This year, we made strategic changes to consolidate our business and enhance efficiencies to set a solid foundation for future success. We remain focused on our vision of partnering with farmers and other suppliers to enable our customers to do great things in the food, agriculture and energy markets. Our team has the expertise and the solid base to maximize our assets and creatively partner with our network to increase Ceres's farmer-direct origination.

"Driven by the increasing demand for regenerative agriculture, our future growth will involve efficiently utilizing our capital through creative marketing and origination to solidify strategic trade flows. Effective trading and merchandising will remain the underpinnings of our business as we continue to maximize the value of our network of assets and deliver supply chain and regenerative agriculture solutions for our customers."

Conference call details

Management of Ceres will host a conference call today, Sept. 15, 2023, at 9 a.m. ET. All interested parties can join the conference call by dialling 1-888-390-0605 or 416-764-8609. The conference call ID is 83420424. Please dial in 15 minutes prior to the call to secure a line.

A live audio webcast of the conference call will be available. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

About Ceres Global Ag Corp.

Ceres and its subsidiaries add value across agricultural, energy and industrial supply chains through efficient sourcing, storing, transporting and marketing of high-quality agricultural commodities, value-added products and raw materials. Leveraging its network of commodity logistics centres and team of industry experts, Ceres connects farmers to customers around the world.

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