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CNC Shareholder Relations Update

To Our Valued CNC Shareholders,

As you may or not be aware, there was a recent broker-placed trade of 160 shares of Canandaigua National Corporation (CNC) that was reported on the online ticker trade networks. CNC stock does not trade publicly, so the Company wants to provide the context around this trade and inform you of the non-impact this one particular trade has on CNC stock.

The singular trade has caught the attention of some CNC employees, some CNC Shareholders and some members of the public. CNC wants to explain what happened and reassure you that CNC remains in a strong position.

In 2013, in the best of interest of shareholders, CNC chose to delist from public registration of its stock with the Securities and Exchange Commission (SEC) as we determined that registration with the SEC provided little to no benefit and much unnecessary cost and additional regulation. CNC shares remained, at that time, on the delisted “pink sheets” exchange where brokers could continue to place trades, although the accurate current value of CNC was never maintained on the broker systems.

At the end of 2021, the unlisted “Pink Sheet” issuer reporting rules changed inferring new reporting rules for Pink Sheet issuers, and we elected not to participate in the new reporting requirements because we did not see the value of being traded on the Pink Sheets. It was anticipated that by virtue of becoming a “no-information” Pink Sheet issuer, we would drop off the Pink Sheets and no longer be traded by brokers. It appears that did not happen, and that “no-information” Pink Sheet issuers’ stock may have made its way to either the “Expert “or the “Gray Market”.

We believe the CNC trade reported on the broker systems was likely by a shareholder who may have overreacted to media news about SVB Bank and Signature Bank and called their broker to liquidate all bank stocks, and the broker placed the trade via the limited trade information afforded in the “Expert” or “Gray” market information. This trade is completely disassociated with CNC’s sealed-bid Dutch Auction trading process which sets the actual market value of CNC stock. This has been the only trade by a broker since the new broker rules were effective in 2021. Over the same time period, 38,248 shares have traded through the time-honored CNC Dutch Auction process.

This incident in no way reflects the health of CNC which remains as vibrant as it has historically been.

Thank you for your continued patronage.