Mr. Xavier de Carniere reports

FERONIA INC. REPORTS Q2 2016 RESULTS

Feronia Inc. has released its financial results for the three and six months ended June 30, 2016. All amounts in this release are expressed in U.S. dollars unless otherwise indicated.

Second quarter 2016 highlights

• Processed 35,560 tonnes of fresh fruit bunches (FFB) (second quarter 2015: 23,350 tonnes), a year-over-year increase of 52 per cent;
• Produced 6,968 tonnes of crude palm oil (CPO) (second quarter 2015: 4,534 tonnes), a year-over-year increase of 54 per cent;
• Average oil extraction rate of 19 per cent (second quarter 2015: 19 per cent);
• Revenue of $3.9-million (second quarter 2015: $3.5-million) primarily from the sale of 5,124 tonnes of CPO at an average price of $661 per tonne (second quarter 2015: 4,004 tonnes at $787 per tonne);
• Net losses of $4.5-million (second quarter 2015 net profit: $200,000); the difference being largely driven by the non-cash change in the value of convertible debentures with an expense of $3.1-million in the second quarter of 2016 (second quarter 2015 gain: $4.6-million);
• 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: "Operations continued apace in the second quarter, our peak period, with impressive and expected increases in production resulting in the company meeting its production targets.

"The new boiler and turbine at Lokutu are currently being commissioned, which, once complete, will have a considerable impact on production, operational capacity and efficiency at Lokutu. Such projects are important to the company as they translate into progressively improved performance and cost savings which will help us achieve our long-term goals.

"Whilst operational improvements and performance are naturally important, the wider positive effects that the ongoing resuscitation of this business has on the areas in which we operate are equally so. The majority of our expenditures relate to the payment of salaries, local services and taxes, all of which greatly contribute to local development. We are seeing increased economic activity around our operations, including the opening of new shops, a growing number of houses with solar panels and a wider availability of goods at lower prices. Improved operational performance also helps us in our ability to deliver an ambitious and extensive environmental and social program.

"It is worth noting that our operational objectives and our environmental and social objectives are intrinsically interwoven. We will not succeed operationally without ensuring we deliver on our social and environmental commitments, and we will not succeed in delivering our environmental and social program if we do not succeed operationally. It is not easy, nor will it be quick. We recognize and accept the scrutiny we are under and we are fully committed to achieving all of our objectives as we continue to rebuild this business. Seeing not just our own plantations but the surrounding regions and beyond coming back to life is our greatest reward."

About Feronia

• At the heart of Feronia lies a long-established palm oil business, Plantations et Huileries du Congo (PHC), which has three remotely located plantations: Lokutu, Yaligimba and Boteka.
• When Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the Democratic Republic of the Congo.
• Feronia is working toward certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards for environmental and social sustainability. The company's oil palm replanting program is brownfield in nature -- replacing old palms with new -- and it has no reliance on deforestation.

We seek Safe Harbor.