Mr. Xavier de Carniere reports

FERONIA INC. REPORTS 2015 RESULTS

Feronia Inc. has released its audited financial results for the year ended Dec. 31, 2015. All amounts in this release are expressed in U.S. dollars unless otherwise indicated.

2015 highlights

• Produced 88,572 tonnes of fruit (2014: 70,887 tonnes), a year-over-year increase of 25 per cent;
• Produced 16,783 tonnes of crude palm oil (CPO) (2014: 13,010 tonnes), a year-over-year increase of 29 per cent;
• Fresh fruit bunch (FFB) yield of 8.1 tonnes per mature hectare (2014: 7.4 tonnes per mature hectare);
• Oil extraction rate (OER) of 19 per cent (2014: 18 per cent);
• Revenue of $10.9-million (2014: $10.8-million) primarily from the sale of 13,926 tonnes of CPO at an average price of $714 per tonne (2014: 11,535 tonnes at $799 per tonne);
• Net loss of $21-million or 39 cents per share (2014: net loss of $16-million or 28 cents per share);
• BioCube biodiesel generator installed at Yaligimba; vehicles and electricity generators at Yaligimba now powered by biodiesel;
• Entered into a secured term facility agreement (the DFI debt facility) for up to $49-million with a syndicate of European lenders consisting of four development finance institutions (DFIs);
• Closed financing of $28.1-million through the private placement of secured convertible debentures with CDC Group PLC, the U.K. government's DFI, the African Agriculture Fund (AAF) through Golden Oil Holdings Ltd. (GOHL) and Ravi Sood, chairman of Feronia.

Subsequent events

• Closed the final tranche of debentures through the private placement of $3.2-million of secured convertible debentures with the AAF through GOHL;
• Publication of environmental and social assessment report;
• Completed first drawdown of $15-million from the DFI debt facility and, concurrent with the first drawdown, the debentures and accrued and unpaid interest converted into common shares.

Xavier de Carniere, chief executive officer of Feronia Inc., commented: "Against a backdrop of the toughest global palm oil market conditions in recent history, Feronia has made considerable operational progress.

"As our replanted hectares begin to mature and our producing hectares increase, so does our confidence in being able to achieve our long-term objectives. This confidence is supported by the gauges on our dashboard turning green; a 25-per-cent increase in fruit production, a 29-per-cent increase in CPO production, increases in yield per hectare and oil extraction rate, a 21-per-cent increase in CPO volume sold, a new major refining customer, and securing a $49-million debt facility are but a few of the indicators of the progress we are making.

"Our progress is no accident. It is down to the hard work and unwavering and precious dedication of our staff, management and two largest shareholders. There is much still to do. We must, and will, remain focused on patiently working towards our goals, including delivering on our social and environmental targets and commitments, so as to rebuild this business into the great business we all believe it will become."

We seek Safe Harbor.