First Growth and Craft Beer Market Sign Joint Venture Agreement

VANCOUVER, BC / ACCESSWIRE / March 17, 2015 / First Growth Holdings Ltd. (“First Growth” or the “Company”) (TSX-Venture:FGH) is pleased to announce that further to its news release dated October 1, 2014, the Company has entered into a definitive joint venture agreement (the “JV Agreement”) and licensed operations agreement (the “Operations Agreement”) with CRAFT Beer Market (“CRAFT Beer”). The Company and CRAFT Beer have agreed to open 5 restaurants with the first one opening in Shanghai, China later this year. CRAFT Beer is a private company based in Calgary, Alberta and is engaged in the business of operating premium casual restaurants in various locations in Canada.

CRAFT Beer has been very successful in Western Canada, with locations in Calgary’s Beltline District, Vancouver’s iconic Salt Building and downtown Edmonton. With over 100 taps at every location it offers one of the largest beer selections in Canada complimented by great food, friendly staff and an open architecture.

“We noticed that CRAFT Beer Market had something special from the moment they launched in Canada, and they have truly differentiated themselves in the marketplace.” said Paul Guedes, President of First Growth. “CRAFT Beer offers a unique brand and experience that hasn’t been seen in Canada and has been very successful and well received. We have researched the beer culture in China thoroughly, and we know there is nothing like CRAFT Beer there. We are thrilled to bring CRAFT Beer into China, which is the largest beer consumption market in the world.”

Pursuant to the agreements, First Growth and CRAFT Beer will jointly form a Hong Kong incorporated holding company (“Holdco”) with First Growth’s and CRAFT Beer’s initial interests in the joint venture Holdco at 70% and 30%, respectively. In turn, Holdco is expected to create various operating entities to be engaged in the business of establishing and operating CRAFT Beer restaurants in China, Hong Kong or Macau. First Growth and CRAFT Beer have each agreed to an initial cash contribution representing 85% and 15%, respectively, of the foregoing initial investment required to set up the first restaurant of CRAFT Beer.

Under the JV Agreement, First Growth shall be responsible for, among other tasks: construction management, assisting with staffing, sourcing products and foods, liaising with the Chinese government, and expertise in the Chinese market. CRAFT Beer shall be responsible for, among other tasks: training, marketing, product sourcing, design and construction, and corporate culture.

The term of the Operations Agreement is for an initial period of five years. The parties have agreed that First Growth shall have the right to renew the term automatically for successive terms of five years each if certain conditions are met, including, but not limited to the completion of five CRAFT Beer restaurants in China, Hong Kong or Macau. In the event a renewal term is not granted, the license granted under the Operations Agreement shall continue for outstanding restaurants opened or in construction (or renovation), subject to certain conditions.

PJ L’Heureux, Founder and President of CRAFT Beer Market said “We have spent the last year working on this opportunity with First Growth and their team in China and are excited about getting started. Having local partners who understand the culture and sector was key to our expansion into international markets. We have been to Shanghai several times and the size of the market never seizes to amaze me with 24 million people in Shanghai and approximately 130 million people within an hour. The opportunities are endless.”

About CRAFT Beer Market

CRAFT Beer is privately Canadian company currently with 3 premium casual restaurants in Western Canada. CRAFT Beer opened its first location in Calgary’s Beltline District in 2011. CRAFT Beer expanded with locations opening late 2013, first in Vancouver’s iconic Salt Building followed by another in Edmonton’s downtown core.

With a focus on using fresh local ingredients whenever possible, all menu items are hand crafted in house to provide the freshest food possible. CRAFT beer has the largest restaurant in Canada to become LEAF Certified (Leaders in Environmentally Accountable Food Service) and features a menu that is 100% Ocean Wise.

CRAFT Beer features Canada’s largest selection of draft beer, with all three locations offering over 100 beers on tap. The stunning central island bar boasts an endless fleet of tap handles and with the draft lines enclosed in two towers. The steel draught lines rise up from the towers to adorn the ceiling and cascade down into a custom built glass-enclosed keg room. The beer lines maintain a constant temperature and correct carbonation, keeping the beer consistently fresh for the perfectly chilled pint every time.

CRAFT Beer is currently scouting locations within Canada and is looking to open 1 -2 stores per year over the next 5 years.

About First Growth

First Growth is a Canadian-based company that identifies and develops strong brands in the Canadian and international markets. Strong brands have a global reach in today’s modern world with the rapid adoption of social media and advancements in technology. First Growth recognizes the potential for certain brands to penetrate international markets and will be focused on developing each one of its brands to its fullest potential.

WineOnline is the first brand that First Growth will develop. WineOnline, through its website WineOnline.ca, allows customers to shop for great unique wines that are not readily available in most stores, and have the wine delivered to your home or office. The direct-to-customer online wine business in Canada is far behind first world peer countries. First Growth views this as an enormous opportunity for the right brand to establish itself as the industry leader. Acquiring WineOnline, which is an established brand in Ontario and has been since 2004, is the perfect opportunity to grow an existing business into a national leading online retailer.

First Growth will be evaluating and exploring other brands that have international opportunities for growth and investing in them in order to create increased shareholder value.

ON BEHALF OF FIRST GROWTH HOLDINGS LTD.:

“J. Paul Guedes”

J. Paul Guedes

President

FOR MORE INFORMATION, PLEASE CONTACT:

Corporate Communications

Tel: 604.688.9588

Email: info@firstgrowthholdings.com

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

Forward Looking Statements

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as: (a) the opening of 5 restaurants with the first one opening in Shanghai, China later this year; (b) incorporation of the Holdco and the creation of various operating entities; (c) CRAFT Beer’s opening of 1-2 Canadian stores per year over the next 5 years; and (d) general completion of the proposed transactions. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company such as the willingness of the parties to close the transactions, the approval of the transactions by the respective company boards, shareholders (if applicable) and regulatory authorities, satisfactory results of the due diligence investigations and current economic conditions. These risks and uncertainties could cause actual results and the Company’s plans and objectives to differ materially from those expressed in the forward-looking information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking information should circumstances or management’s estimates or opinions change.

SOURCE: First Growth Holdings Ltd.

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