Mr. Xavier de Carniere reports

FERONIA INC. REPORTS Q3 2016 RESULTS

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

2016 third quarter highlights

• Produced 27,762 tonnes of fruit (third quarter of 2015: 24,020 tonnes), a year-over-year increase of 18 per cent;
• Produced 5,273 tonnes of crude palm oil (third quarter of 2015: 4,496 tonnes), a year-over-year increase of 17 per cent;
• Oil extraction rate of 19 per cent (third quarter of 2015: 19 per cent);
• Revenue of $4.3-million (third quarter of 2015: $800,000), primarily from the sale of 5,650 tonnes of crude palm oil at an average price of $735 per tonne (third quarter of 2015: 1,057 tonnes at $661 per tonne);
• Net loss of $2.6-million (third quarter of 2015: net loss of $8.4-million).

Xavier de Carniere, chief executive officer of Feronia, commented: "Our agricultural production continues to steadily grow, in line with our expectations. With trees responding well to the application of fertilizer, we are confident that our production growth assumptions will continue to materialize.

"It is important that we ensure we are adequately equipped for the expected growth in production over the coming few years and are therefore committing to industrial capital expenditure across all three plantations. The recently installed Lokutu boiler and turbine, once commissioned, pending the resolution of some unexpected technical issues, will quickly have a considerable positive impact on production, operational capacity and efficiency. We expect similar positive impacts at Boteka and Yaligimba as new boilers, which are currently being manufactured, are installed at each of these sites in 2017.

"It is worth reiterating that improvements in operational performance are intrinsically interwoven with our environmental and social objectives and vice versa. We will only succeed operationally if we deliver on our social and environmental commitments, and we will only succeed in delivering our environmental and social program if we succeed operationally.

"Recent media attention has brought into the spotlight a lot of the good things we are doing on the ground. Whether it is that we employ several thousand people in remote areas, or the immense positive impact of our hospitals, rebuilding and renovation programs for housing, schools, health care facilities and roads, or that we are one of the few organizations making a real positive difference to the lives of tens of thousands of people in one of the poorest countries in the world, we are proud of what we are trying to achieve both operationally and from an environmental and social perspective.

"Whilst the [Democratic Republic of the Congo] is going through challenging times, both politically and economically, our determination remains undented and we continue to work hard to ensure that the company's operational performance and growth matches our environmental and social ambitions and that good progress continues apace on both fronts."

About Feronia

Feronia is an agribusiness operating in the Democratic Republic of the Congo.

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. The company also has an arable farming operation that grows and processes rice.

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