Niagara-on-the-Lake, Ontario--(Newsfile Corp. - November 10, 2026) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) ("Diamond Estates" or the "Company") announces that today it has entered into a loan agreement with Lassonde Industries Inc. ("Lassonde"), pursuant to which Lassonde has advanced to the Company an unsecured, non-revolving term loan in the principal amount of $5,500,000 (the "Loan").

The Loan bears interest at the prime rate of the Bank of Montreal plus 2.25% per annum, calculated monthly in arrears, and matures on June 30, 2027. The Loan is repayable in cash in instalments of $1,250,000 on each of January 29, 2027, April 30, 2027 and June 30, 2027, or earlier upon the Company's receipt of the corresponding quarterly payment under the Ontario VQA Wine Support Program, with the balance of principal and accrued interest payable at maturity. The Loan may be prepaid at any time without penalty. The Loan is unsecured and is subordinated to the Company's secured indebtedness to the Bank of Montreal, which has consented to the Loan. The Loan is not convertible into, and is not repayable in, securities of the Company.

The Loan provides working capital to support the Company's ongoing growth. It is larger than last year's $3.6 million temporary working capital loan. The larger loan this year supports a $2.0 million increase relative to prior year inventory to support adequate sales forecast coverage and another large harvest ($5.4 million) to ensure those higher inventory levels remain intact; repayment of approximately $0.96 million of debt, made up of long-term debt plus convertible debenture interest the Company already paid to a holder other than Lassonde; and approximately $0.4 million of capital spending to launch the 1067 Kitchen at Lakeview Wine Co. and to support Shiny Apple Cidery's renovation and appearance on an HGTV makeover show

The Loan constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), 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 Loan 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 Loan is exempt from the minority approval requirement pursuant to subsection 5.7(1)(f) of MI 61-101, as the Loan was obtained on reasonable commercial terms that are not less advantageous to the Company than if obtained from a person dealing at arm's length with the Company, and the Loan is not convertible into, or repayable in, equity or voting securities of the Company or an affiliate and is not otherwise participating in nature.

The Loan was reviewed and approved by the independent directors of the Company, acting under authority delegated by the board of directors, who determined that its terms are reasonable commercial terms no less advantageous to the Company than those available from arm's-length lenders, having regard to the pricing of the Company's existing secured credit facilities. Directors who are not independent of the Company and the Company's President and Chief Executive Officer disclosed their interests and abstained from voting. No director expressed a contrary view. The Company did not file a material change report more than 21 days before the closing of the Loan because the terms of the Loan were not settled until shortly before closing and the Company wished to complete the transaction on an expedited basis for sound business reasons.

"We thank Lassonde for its continued support as Diamond Estates invests in growth and strengthens its balance sheet," said Andrew Howard, President and CEO 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 well known 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 ("Trajectory"), 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, Cielo and Valdo from Italy; Bodegas Muriel from Spain; Porta 6, Julia Florista, Boas Quintas, Catedral and Cabeca de Toiro from Portugal; Fowles Wines from Australia; Empress Wines from Croatia; 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:

Trajectory also represents distinguished spirit brands such as Cofradia Tequila, Siempre Tequila, Chisme Tequila, Hussong's Tequila, Solmano Mezcal and Chica Chida Agave Spirit from Mexico; Islay Mist and Waterproof blended Scotch whiskies from Scotland; Glen Breton Canadian whiskies from Nova Scotia; Five Farms Irish Cream Liqueur from the UK; Tequila Rose Strawberry Cream, 360 Vodka and Holladay Bourbon from the USA; Giffard Liqueurs from France; Zubrowka Vodka from Poland and Becherovka from the Czech Republic.

Beer, Cider, and RTD Portfolio:

In the beer, cider, and ready-to-drink (RTD) categories, Trajectory represents Darling Mimosa, Protini Beverages from Ontario; Mountain Joe Hard Coffee, ESA Cocktails, Solmano Craft Cocktails, Stickler Shrub Cocktails, Sunday Session RTDs and Jasper Brewing Company from Alberta, and Warsteiner and Konig Ludwig from Germany.

Forward-Looking Statements

This press release contains forward-looking statements, including statements in respect of the Company's anticipated use of the proceeds of the Loan, anticipated grape purchases and demand, and the timing of repayment of the Loan. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Diamond Estates to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the economy generally; consumer interest in the services and products of the Company; financing; competition; anticipated and unanticipated costs; and TSXV approval of the Interest Conversion. While the Company acknowledges that subsequent events and developments may cause its views to change, the Company specifically disclaims any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing the views of the Company as of any date subsequent to the date of this press release. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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