Mr. Andrew Howard reports

LASSONDE ACQUIRES A CONVERTIBLE DEBENTURE OF DIAMOND ESTATES WINES & SPIRITS INC.

Lassonde Industries Inc. has acquired a 10.0 per cent unsecured convertible debenture of Diamond Estates Wines & Spirits Inc. with a stated maturity date of Nov. 9, 2026, in the principal amount of $1,304,000 from a third party for total consideration of $1,330,079.78, representing the principal amount plus accrued interest thereon, through a privately negotiated transaction entered into on Jan. 19, 2026.

Prior to the acquisition, Lassonde directly owned 32,846,506 common shares of Diamond Estates, $500,000 in principal amount of 10.0 per cent unsecured convertible debentures of Diamond Estates and 847,603 deferred share units, which may be settled, at the discretion of Diamond Estates, for up to 847,603 common shares. Additionally, 3346625 Canada Inc., a corporation controlled by Pierre-Paul Lassonde and a joint actor of Lassonde, directly owns 2,117,824 common shares and $2.85-million in principal amount of 10.0 per cent unsecured convertible debentures of Diamond Estates. As such, prior to the acquisition, the Lassonde group held 34,964,330 common shares, representing approximately 51.56 per cent (on a non-diluted basis) of the issued and outstanding common shares, $3.35-million in principal amount of 10.0 per cent unsecured convertible debentures of Diamond Estates, and 847,603 deferred share units.

Following the acquisition, Lassonde directly owns 32,846,506 common shares, $1,804,000 in principal amount of 10.0 per cent unsecured convertible debentures of Diamond Estates and 847,603 deferred share units. As such, the Lassonde group now holds 34,964,330 common shares, representing approximately 51.56 per cent (on a non-diluted basis) of the issued and outstanding common shares, $4,654,000 in principal amount of 10.0 per cent unsecured convertible debentures of Diamond Estates, and 847,603 deferred share units.

If Lassonde were to convert all of its debentures of Diamond Estates, it would own, directly or indirectly, 41,046,506 common shares, representing approximately 54.00 per cent of the issued and outstanding common shares (based on the then current number of issued and outstanding common shares, assuming no additional issuance or conversion) and if Lassonde Holding were to convert all of its debentures of Diamond Estates, it would own, directly or indirectly, 15,072,369 common shares, representing approximately 18.66 per cent of the issued and outstanding common shares (based on the then current number of issued and outstanding common shares, assuming no additional issuance or conversion). If both Lassonde Industries and Lassonde Holding were to convert all of their debentures of Diamond Estates, the Lassonde group would own, directly or indirectly, 56,118,874 common shares, representing approximately 63.07 per cent of the issued and outstanding common shares (based on the then current number of issued and outstanding common shares, assuming no additional issuance or conversion).

The acquisition was undertaken for investment purposes. The Lassonde group may, from time to time, acquire additional securities of Diamond Estates for investment purposes and to assist Diamond Estates with the execution of its strategic plan and may, from time to time, increase or decrease its beneficial ownership or control of Diamond Estates depending on market or other conditions, general economic conditions, Diamond Estates' business and financial condition, and other factors.

This news release is being issued as required by National Instrument 62-103 (the Early Warning System and Related Take-Over Bid and Insider Reporting Issues) and National Instrument 62-104 (Take-Over Bids and Issuer Bids), and relates to Lassonde. A copy of the early warning report with additional information in respect of the foregoing matters will be available under Diamond Estates' profile on the SEDAR+ website.

About Diamond Estates Wines and Spirits Inc.

Diamond Estates is a producer of high-quality wines and ciders as well as a sales agent for over 120 beverage alcohol brands across Canada. The company operates four production facilities, three in Ontario and one in British Columbia, that produce predominantly VQA wines under such brand names as 20 Bees, Creekside, D'Ont Poke the Bear, EastDell, Lakeview Cellars, Mindful, Shiny Apple Cider, Fresh Wines, Red Tractor, Seasons, Serenity and Backyard Vineyards.

Through its commercial division, Trajectory Beverage Partners, the company serves as the sales agent for a wide range of leading international beverage brands.

Wine portfolio

Trajectory represents renowned wine brands, including Fat Bastard and Gabriel Meffre from France; Kaiken from Argentina; Kings of Prohibition from Australia; Yealands, Kono, Tohu and Joiy sparkling wine from New Zealand; Talamonti and Cielo from Italy; Porta 6, Julia Florista, Boas Quintas, Catedral and Cabeca de Toiro from Portugal, as well as C.K. Mondavi & Family, Charles Krug, Line 39, Harken, FitVine, and Rabble from California. Trajectory also represents a broad portfolio of wines sold exclusively to restaurants, bars and private consumers.

Spirits portfolio

The company also represents distinguished spirit brands such as: Cofradia tequila and Hussong's tequila from Mexico; Islay Mist and Waterproof blended Scotch whiskies from Scotland; Glen Breton Canadian whiskies from Nova Scotia; Five Farms Irish cream liqueur and Broker's gin from the United Kingdom; Tequila Rose strawberry cream, 360 vodka and Holladay bourbon from the United States; Giffard liqueurs from France; and Becherovka from the Czech Republic.

Beer, cider and ready-to-drink portfolio

In the beer, cider and ready-to-drink categories, Trajectory represents Darling mimosas from Ontario; Rodenbach beer from Belgium; La Trappe beer from the Netherlands; and Warsteiner beer from Germany.