Mr. Xavier de Carniere reports

FERONIA INC. REPORTS Q1 2016 RESULTS

Feronia Inc. has released its financial results for the three months ended March 31, 2016. All amounts in this release are expressed in U.S. dollars unless otherwise indicated.

First quarter 2016 highlights

• Produced 21,276 tonnes of fruit (first quarter 2015: 18,613 tonnes), a year-over-year increase of 14 per cent;
• Produced 4,045 tonnes of crude palm oil (CPO) (first quarter 2015: 3,599 tonnes), a year-over-year increase of 12 per cent;
• Oil extraction rate of 19 per cent (first quarter 2015: 19 per cent);
• Revenue of $4.0-million (first quarter 2015: $2.5-million) primarily from the sale of 5,551 tonnes of CPO at an average price of $636 per tonne (first quarter 2015: 2,917 tonnes at $777 per tonne);
• Net loss of $329,000 (first quarter 2015: net loss of $3,053,000);
• Closed the final tranche of secured convertible debentures through the private placement of a $3.2-million debenture with the African Agricultural Fund through Golden Oil Holdings Ltd.;
• Publication of environmental and social assessment report.

Subsequent events

• Completed first drawdown of $15-million from secured term facility agreement and, concurrent with the first drawdown, $31.33-million principal amount of debentures and $2.7-million of accrued and unpaid interest converted into 291,693,813 common shares.

Xavier de Carniere, chief executive officer of Feronia, commented: "The operational team achieved a smooth first quarter this year, meeting their production targets.

"Low global palm oil prices and the significant amount of illegal imports of palm oil, driven by sharp currency fluctuations in countries neighbouring the Democratic Republic of the Congo, negatively impacted the company over the past year. Both of these issues seem to be behind us and we see a more favourable competitive landscape ahead.

"Our new boiler and turbine in Lokutu will soon be operational, which should greatly reduce our energy costs and positively impact our extraction rate. We are launching equivalent projects in our Yaligimba and Boteka plantations, with similar impacts on productivity expected towards the end of 2017.

"Operationally we are entering into a virtuous circle, which should translate into progressively improved performance moving the company along a path to achieve our long-term goals. Our production volumes and efficiency should continue to increase as we improve and increase our industrial capacity, gradually freeing up additional resources to advance our ambitious social and environmental targets with the continued support of our shareholders and lenders."

We seek Safe Harbor.