Grown Rogue Intl. Inc. (GRUSF)

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Through Dyami Energy, the Company commenced operations in August 2010 to drill an initial Eagle Ford shale
test well on the Matthews Lease in Zavala County, Texas. The Matthews/Dyami #1H well was spud in on October
15, 2010 and was drilled to a measured depth of 8,563, feet which includes a 3,300 foot “in section” lateral into the
Eagle Ford shale formation. A shot point sleeve was installed in the Eagle Ford shale formation to facilitate a multi
stage frac completion.

The well was logged extensively and 36 sidewall cores were taken from 4 key formations in descending order, the
San Miguel, the Austin Chalk, the Eagle Ford and the Buda. The logs were interpreted by Weatherford International
Ltd and the sidewall cores were analyzed by Core Laboratories and Weatherford and based on those results the
Company is formulating a detailed frac design and completion plan for the Dyami/Matthews #1 H well.

On January 20, 2011 the Company spud its 100% working interest Murphy/Dyami #1 test well on its 2,637 gross
acre Murphy Lease located in Zavala County, Texas. The well was drilled to to a vertical depth of 4,588 feet into
the Buda formation. The well was logged and sidewall cores were taken from 5 key formations the Escondido, the
Serpentine, the Eagle Ford shale, the Georgetown and the Buda. The logs were interpreted by Weatherford
International Ltd. and the sidewall cores have been analyzed by Core Laboratories and the Company is formulating
a completion program.

For the six months ended February 28, 2011 the Company incurred $2,014,009 in expenditures related to its
Matthews and Murphy Leases, Texas.

The Company expects to apply additional capital to further enhance our property interests. As part of the
Company’s oil and gas development program, management of the Company anticipates further expenditures to
expand its existing portfolio of proved reserves. Amounts expended on future exploration and development is
dependent on the nature of future opportunities evaluated by the Company. These expenditures could be funded
through cash held by the Company or through cash flow from operations. Any expenditure which exceeds available
cash will be required to be funded by additional share capital or debt issued by the Company, or by other means.

The Company’s long-term profitability will depend upon its ability to successfully implement its business plan.

The Company’s past primary source of liquidity and capital resources has been loans and advances, cash flow from
oil and gas operations and proceeds from the sale of marketable securities and from the issuance of common shares.

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