Denver Smith Acquires Stake in Russell Breweries Inc.

MILFORD, CONNECTICUT--(Marketwired - Dec. 9, 2015) - Denver Smith("Mr. Smith"). This press release is being disseminated as required by National Instrument 62-103, The Early Warning System and Related Take Over Bid and Insider Reporting Issues, in connection with the filing of an early warning report (the "Early Warning Report") regarding the acquisition of securities of Russell Breweries Inc. ("Russell") by Mr. Smith.

Mr. Smith is pleased to announce that he has acquired 769,000 common shares of Russell, a producer of premium beers in Western Canada with breweries located in BC and Manitoba.

Mr. Smith has acquired ownership of 769,000 common shares representing approximately 0.88% of the presently issued and outstanding common shares. This acquisition increases Mr. Smith's position in common shares of Russell to 2,030,300 or approximately 2.33% of the presently issued and outstanding common shares of Russell.

Following completion of this acquisition, Mr. Smith together with joint actors 73114 Investments LLC and Paratus Capital LLC, owns and controls 9,378,860 shares, or approximately 10.77% of the presently issued and outstanding common shares of Russell (based on 87,083,788 basic shares outstanding as of September 30^th, 2015). These shares are held by 73114 Investments LLC (6,948,800 shares), Paratus Capital LLC (399,760 shares), and Denver Smith (2,030,300 shares). Mr. Smith is the Chief Investment Officer of 73114 Investments LLC. Mr. Smith is a founding partner, officer, and 33.3% owner of Paratus Capital LLC.

The common shares were acquired in multiple trades on the open market on the TSX Venture Exchange at prices ranging from $0.055 to $0.06 per security. Mr. Smith has acquired the common shares for investment purposes, and may acquire further common shares, or dispose of its holdings of common shares, both as investment conditions warrant. As of the date of this press release, Mr. Smith and joint actors currently intend on acquiring more shares of Russell on the open market or through other means. Russell is listed on the TSX Venture Exchange under the symbol "RB".

Denver Smith's office is located at 52 Carlson Drive, Milford, CT 06460.