Diamond Estates Wines & Spirits Inc. announce that it will be distributing D?Ont Poke the Bear (?DPTB?) wines and ciders throughout Canada. To facilitate the distribution of these products, the Company has agreed to purchase DPTB inventory from Generations Wine Company Limited (?GWCL?) and has entered into a licensing agreement (the ?Licensing Agreement?) with 3346625 Canada Inc., a corporation controlled by Mr. Pierre-Paul Lassonde (?Lassonde Family Holding?). Lassonde Holding has acquired from GWCL the brand names and trademarks associated with DBTB.

Diamond Estates has agreed to purchase the DPTB inventory and provide other future consideration for a total estimated cost of $2.5 million over a period of 60 months. The estimated consideration assumes the historical sales of DPTB products continues at its current rate. Pursuant to the Licensing Agreement, the Company has obtained from Lassonde Family Holding the rights to manufacture, market, distribute and sell DPTB products, in exchange for a 10% royalty on all products sold.

The Licensing Agreement is for an initial five year term, subject to an additional five year renewal option. The Company also has the right to purchase the DPTB brand names and trademarks from Lassonde Family Holding under certain conditions.