Diamond Estates Wines and Spirits Announces Amendment to Credit Facilities with Bank of Montreal and Issuance of Bonus Warrants

Niagara-on-the-Lake, Ontario--(Newsfile Corp. - July 27, 2020) - Diamond Estates Wines & Spirits Inc. (TSXV: DWS) (the "Company" or "Diamond Estates") (http://www.diamondestates.ca), today announced that, effective July 24, 2020, the Company has entered into an amendment (the "Amendment") to its credit facilities agreement (the "Facilities Agreement") with Bank of Montreal (the "Lender") made as of September 29, 2017, as amended.

Under the Facilities Agreement, the Lender provides Diamond Estates and its subsidiaries with a total of up to $23 million, including a $13.0 million revolving credit facility (the "Revolver") and a $10.0 million non-revolving term loan.

The Amendment provides for an extension on maturity of the indebtedness under the Facilities Agreement to July 1, 2022, certain Fixed Charge Coverage Ratio relief in the second and third quarters of the Company's Fiscal year 2021, and deferral of principal payment obligations in the same such quarters.

As consideration for providing the Amendment, the Lender has been issued on the date of the Amendment, 750,000 non-transferable bonus warrants of the Company ("Bonus Warrants") pursuant to TSX Venture Exchange Policy 5.1 - Loans, Loan Bonuses, Finder's Fees and Commissions. Each Bonus Warrant is exercisable into one common share of the Company (a "Bonus Share") at an exercise price of CDN$0.16 per Bonus Share. The Bonus Warrants expire on July 1, 2022 and the Bonus Shares are be subject to an initial four month plus one day hold period from the date of issuance of the Bonus Warrants.

About Diamond Estates Wines and Spirits Inc.

Diamond Estates Wines and Spirits Inc. is a producer of high quality wines and a sales agent for over 120 beverage alcohol brands across Canada. The Company operates two wineries, one in Ontario and one in British Columbia, that produce predominantly VQA wines under such well-known brand names as 20 Bees, EastDell, Lakeview Cellars, Dan Aykroyd, Fresh, McMichael Collection, Benchmark, Seasons, Serenity, and Backyard Vineyards. Through its wholly owned subsidiary, Trajectory Beverage Partners, the Company is the sales agent for many leading international brands in all regions of the country as well as being a distributor in the western provinces. These recognizable brands include Josh wines from California, Fat Bastard and Andre Lurton wines from France, Kaiken wines from Argentina, Felix Solis wines from Spain, Blue Nun wines from Germany, Francois Lurton wines from France and Argentina, Waterloo Brewing and Amsterdam Brewery, both from Canada, Landshark Lager from the USA, Marston's beers from England, Social Lite vodka sodas from Canada, Edinburgh Gin from Scotland, Tamdhu, Glengoyne and Smokehead single-malt Scotch whiskies, Barcelo Rum from the Dominican Republic, C.K. Mondavi & Family wines including Charles Krug from Napa, Bols Vodka from Amsterdam, Koyle Family Wines from Chile, Pearse Lyons whiskies and gins from Ireland, Niagara Craft Distillers' beverages from Ontario, Fontana di Papa wines from Italy, and certain Heineken International beer brands, including Red Stripe and Dragon Stout from Jamaica, Tiger from Singapore and Gosser and Kaiser from Austria.

For more information, please contact:

J. Murray Souter
President & CEO
Diamond Estates Wines & Spirits Inc.
905.641.1042 Ext 234

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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