Mr. Vic Neufeld reports

APHRIA TO REPORT POSITIVE EARNINGS FOR THE QUARTER

Aphria Inc. has released highlights of its third quarter preliminary results for the period ended Feb. 29, 2016, without international financial reporting standards-mandated biological asset adjustments.

                         HIGHLIGHTS

                                    Q3 2016         Q2 2016

Patients                              4,000           3,400
Revenue (000)                      $2,680.0        $2,026.8
Kilograms sold                        322.4           256.3
All-in cost of goods sold/gram        $2.22           $2.49
Cash cost to produce/gram             $1.67           $1.87
Adjusted gross margin                   77%             69%
Estimated EBITDA percentage          18-20%              0%

Aphria will report positive earnings, with and without IFRS-mandated biological asset adjustments, for the quarter. Additionally, Aphria achieved its cash break-even threshold for the first nine months of the fiscal year, a quarter sooner than originally announced. Revenue increased 32.2 per cent from the prior quarter, growing from $2.0-million to $2.68-million, while year-to-date revenues exceed $5.6-million.

Throughout the quarter, patient registrations continued to grow with over 4,000 patients registered as of Feb. 29, 2016 (compared with 3,400 as of Nov. 30, 2015).

Continuing to leverage Aphria's low-cost producer status, the company's adjusted gross margin increased by 8 per cent over the past quarter to 77 per cent. This continued improvement was fuelled by attention to operating cost controls, optimized strain selection and refinements to the company's growing techniques. Given the recent Health Canada expansion approval, which doubled the company's growing space, further cost reductions are anticipated with full crop rotation.

"Having doubled our capacity, added oil extraction capabilities and operating state-of-the-art in-house laboratories, we are strategically positioned to capitalize on the growth of the medical cannabis market, as well as the recreational marijuana market (once legalized)," said Vic Neufeld, chief executive officer. "Together with new enhanced strains yielding our highest levels of THC [tetrahydrocannabinol] and CBD [cannabidiol] ever, and an investment in agricultural genetics research, Aphria is demonstrating best-in-class leadership."

We seek Safe Harbor.