Mr. Andrew Howard reports

DIAMOND ESTATES WINES & SPIRITS INC. RECEIVES $1M ADVANCE FROM LASSONDE

Diamond Estates Wines & Spirits Inc. has entered into an unsecured advance agreement with Lassonde Industries Inc., pursuant to which Lassonde has agreed to provide the company with an unsecured advance in the principal amount of $1-million. The advance bears interest at the prime rate of Bank of Montreal plus 2.25 per cent per annum and matures on June 30, 2026. The advance is unsecured and subordinated to the company's secured indebtedness.

The additional working capital support is intended to assist the company with continuing growth initiatives and seasonal working capital requirements, including strategic grape purchases to support anticipated future demand.

The advance pursuant to the agreement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions, as Lassonde is a control person and a related party of the company. The company is relying on exemptions from the formal valuation and minority approval requirements of MI 61-101. The transaction is exempt from the formal valuation requirement pursuant to Subsection 5.5(b) of MI 61-101, as the company's securities are not listed on a specified market (as defined in MI 61-101). The transaction is also exempt from the minority approval requirement pursuant to Subsection 5.7(1)(a) of MI 61-101, as the fair market value of the advance does not exceed 25 per cent of the company's market capitalization.

"We want to thank Lassonde for its ongoing support as Diamond continues its financial turnaround and invests in growth," said Andrew Howard, president and chief executive officer of Diamond Estates.

About Diamond Estates Wines & 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 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.