Mr. Ravi Sood reports

FERONIA INC. STARTS SALE OF RICE GROWN BY ITS ARABLE FARMING OPERATIONS

Feronia Inc. has commenced sales of rice grown on the company's arable farm in the Bas Congo province of Congo.

Following quality tests, Bralima, Heineken N.V.'s wholly owned Congolese subsidiary, has agreed to purchase 1,100 tonnes of rice during 2013. The first 50 tonnes of rice has been delivered with a further 100 tonnes due for shipment before the end of April.

Feronia has also commenced selling rice into the local food market through sales to Ets Kuku, a food wholesaler. The premium-grade rice, containing 5 per cent or less broken grains, is being supplied on a weekly basis in 25-kilogram, Feronia-branded polypropylene sacks. An initial shipment of eight tonnes has been delivered to Ets Kuku and a further 23 tonnes are being supplied each month going forward.

Fulfilment of both contracts is expected to be made from existing stocks of rice accumulated from the company's trial plantings which were harvested, dried and subsequently milled by the company, and from current and expected future harvests.

The company now has in place a pricing structure whereby the price it charges for rice is determined by the quality of the product sold, specifically, the percentage of broken grains. The prices that the company is achieving are consistent with earlier estimates and at a significant premium to global rice prices. The company anticipates selling to additional counterparties over the course of time.

Ravi Sood, chairman of Feronia, commented: "It is hugely satisfying to commence sales of our locally produced rice in the DRC and a massive achievement to do so just two years after we commenced our arable farming operation.

"The pricing structure we have in place and the prices we are achieving clearly demonstrate the substantial local demand for quality rice and the commercially compelling business opportunity before us. We are in advanced discussions with other potential buyers in the DRC and believe that Feronia will play a major role in helping the DRC become self-sufficient in staple foods such as rice."

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