Mr. Ravi Sood reports

FERONIA ANNOUNCES CLOSING OF FIRST DRAWDOWN ON $49M TERM FACILITY

Feronia Inc. has provided an update. All conditions precedent have been satisfied to facilitate a first drawdown of $15-million from the previously announced $49-million secured term facility provided in December, 2015, by a syndicate of European lenders consisting of four development finance institutions (DFIs). All amounts in this press release are expressed in U.S. dollars unless otherwise indicated.

The purpose of the facility is to finance investment into equipment, replanting, fertilizer and environmental and social governance (ESG) expenditures required as part of the rehabilitation of the three palm oil plantations of Feronia's subsidiary Plantations et Huileries du Congo SA (PHC), in the Democratic Republic of the Congo.

The facility comprises $16.5-million to be provided by DEG -- Deutsche Investitions- und Entwicklungsgesellschaft mbH, lead arranger and agent for the syndicate, $16.5-million by Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden NV (FMO), the Dutch development bank, $11-million by the Belgian Investment Company for Developing Countries (BIO), the Belgium government's DFI, and $5-million by the Emerging Africa Infrastructure Fund (EAIF), a facility of the Private Infrastructure Development Group.

The financing allows the DFIs to contribute to the development of poor rural areas through supporting the private sector, an important engine for employment and income in developing nations such as the DRC.

The subsequent advances pursuant to the facility are subject to satisfying further conditions precedent. The amounts advanced under the facility will be repaid semi-annually over a six-year period commencing September, 2019. The facility is subject to covenants, pledges and charges typical of a loan facility of this nature and shall be secured by way of a first ranking security against the assets of PHC and by way of a pledge of the shares of PHC by a Belgian subsidiary of Feronia.

Feronia selected the lenders following a tender process which saw considerable interest from a variety of debt providers and DFIs. Approval of the loan by the lenders followed a comprehensive due-diligence process and the further development and extension of the company's environmental and social action plan (ESAP). The ESAP is the company's road map for implementing environmental and social best practice and improving social infrastructure across its operations and was jointly developed with CDC Group PLC, one of Feronia's key shareholders.

Ravi Sood, chairman of Feronia, commented: "After a considerable amount of hard work by many people, I am delighted that we are making the first drawdown on the debt facility provided by our DFI lenders.

"DFIs are hugely selective about the types of organizations they deal with. Their involvement with a company, quite rightly, brings scrutiny at all levels and imposes requirements on such companies to operate at the highest standards and work towards internationally recognized standards in areas such as the environment, social matters and corporate governance. We strongly believe that DFI involvement in Feronia and PHC at both a shareholder and debt provider level, is hugely positive for all stakeholders.

"This facility will allow us to continue delivering on our objectives of rebuilding PHC into a sustainable business fit for the 21st century and, in the process, become a model for transparency and sustainability both in the DRC and in the palm oil sector."

In connection with the first drawdown, all of the secured convertible debentures issued by Feronia in 2015 and 2016 automatically converted into common shares of Feronia. As a result, a total of $31.33-million principal amount of debentures and $2,700,946 of accrued interest converted into an aggregate of 291,693,813 common shares, of which 28,222,122 of the common shares are subject to a hold period until May 16, 2016, in accordance with applicable Canadian securities laws.

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