LONDON - s4story -- MARKET UPDATE

London / Bermuda: The global Scotch whisky industry is navigating one of its most challenging periods in recent memory, with a confluence of macro-economic pressures and geopolitical headwinds weighing on market sentiment and asset valuations. The United States, historically the single largest and most valuable export market for Scotch whisky, has been at the centre of growing trade policy uncertainty. Proposed and implemented tariff measures have introduced significant friction for exporters, disrupting purchasing patterns and creating hesitation among US-based buyers and distributors. This uncertainty has materially dampened demand from what has traditionally been the industry's most profitable channel.

Compounding the challenge from the US, demand across other key global markets has also softened. Changing consumer preferences, macroeconomic pressures affecting discretionary spending, and elevated inventory levels in key markets across Europe and Asia have collectively dampened off-take volumes. The resulting supply-demand imbalance has placed downward pressure on cask valuations and secondary market prices, creating conditions that, while challenging for existing market participants, present a structurally significant opportunity for new entrants looking to take a long-term exposure in this asset class.

Periods of price dislocation in asset markets have historically represented the most attractive entry points for long-term investors. The current environment in Scotch whisky is no different. Suppressed cask valuations, driven by short-term uncertainty rather than any deterioration in the underlying fundamentals of the asset class, offer informed investors the ability to acquire premium investment-grade whisky assets at compelling valuations. The long-term supply-demand dynamics of aged Scotch whisky remain firmly intact: Scotch whisky cannot be manufactured on demand, maturation is a multi-year process, and global appetite for premium aged spirits continues its secular upward trajectory. Investors who establish positions at current price levels stand to benefit disproportionately as the market normalizes and demand recovers.

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The Caledonian Malt Fund L.P. ("CMF" or the "Fund") is strategically positioned to capitalize on this market timing. With its investment mandate focused on acquiring high-quality, investment-grade Scotch whisky casks across Scotland's most reputable distilling regions, the Fund is actively sourcing assets at entry valuations that reflect current market dislocation. The Fund's management believes that disciplined capital deployment at this stage of the market cycle will deliver materially enhanced returns for its Limited Partners relative to entry points achievable under more buoyant market conditions. This market environment, while presenting short-term headwinds, is precisely the type of opportunity that CMF was designed to capture.

FUND UPDATE

The Caledonian Malt Fund L.P. is actively progressing its fundraising activities and is encouraged by the strong level of investor interest received to date. The Fund has engaged with prospective investors across its key target markets of the United Kingdom, Europe, and Asia, and has seen meaningful engagement from both family offices and high-net-worth individuals - two segments that have demonstrated a particularly strong appreciation for the risk-adjusted return profile and portfolio diversification benefits offered by whisky cask investment.

The Fund is advancing towards its first close, with anchor investors currently in active discussions on terms and progressing towards formal capital commitments. The breadth and quality of investor interest received is reflective of the Fund's differentiated proposition: a regulated, institutionally structured vehicle operating under the oversight of the highly reputed Bermuda Monetary Authority (BMA), combined with an exclusive custodial partnership with the Campbeltown Bond - an HMRC-licensed bonded warehouse - providing investors with the highest standards of asset security, transparency, and compliance.

In parallel, the Fund is exploring feeder fund structures designed to accommodate investors with specific jurisdictional, regulatory, or capital commitment requirements, ensuring that participation in CMF is accessible to the broadest possible range of qualified investors. The Fund continues to work diligently with its network of capital partners to build a high-quality, long-term investor base aligned with the Fund's investment horizon and objectives.

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LEADERSHIP COMMENTARY

"Given the current market environment, our fund is progressing in the right direction and various fund development work streams are now completed. We look forward to our first close and initiating capital deployment."

— Rod Sampson, Chair, Board of Advisors - The Caledonian Malt Fund L.P.

"We are very pleased with investor feedback and are encouraged to see investor interest from both institutional and HNW investors. Regulated fund infrastructure under the highly reputed Bermuda Monetary Authority jurisdiction, combined with the fund's exclusive custody partnership with HMRC-licensed Campbeltown Bond, are giving investors a lot of confidence."

— Mike Webb, Member, Board of Advisors - The Caledonian Malt Fund L.P.

"The Fund is working with key partners to facilitate fund raising, taking due care of investor preference and capital commitments. The Fund is also exploring feeder structures to meet investors' specific requirements."

— Amit Tripathy, Fund Manager - The Caledonian Malt Fund L.P.

"We welcome the Fund's signing of the custodial arrangement with us and we look forward to welcoming the Fund's investors to our world-class, technology-enabled storage facility, which is located right on the edge of the Atlantic, providing an ideal environment for coastal maturation in the historic Campbeltown region."

— Fergus Wallace, Managing Director - Campbeltown Bond

ABOUT THE CALEDONIAN MALT FUND L.P.

The Caledonian Malt Fund L.P. is an alternative investment fund registered with the Bermuda Monetary Authority (BMA) under the Investment Funds Act as a Professional Closed Fund. The Fund invests in a diversified portfolio of premium, investment-grade Scotch whisky casks sourced from reputable distilleries across Scotland's key whisky-producing regions. Assets are stored and matured at Campbeltown Bond, an HMRC-licensed bonded warehouse, with comprehensive insurance coverage.

Investor Relations
Email: connect@caledonianfund.com
Web: www.thecaledonianmaltfund.com

Address: Park Place, 55 Par-la-Ville Road, Hamilton HM 11, Bermuda

DISCLAIMER: This press release is for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities. Investment in the Fund is available to professional and qualified investors only. Past performance is not indicative of future results. Detailed disclaimer is