Mr. Xavier de Carniere reports

FERONIA INC. REPORTS 2016 RESULTS

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

2016 highlights:

• Produced 109,687 tonnes of fruit (2015 -- 88,572 tonnes), a year-over-year increase of 24 per cent;
• Produced 20,726 tonnes of crude palm oil (2015 -- 16,783 tonnes), a year-over-year increase of 23 per cent;
• Fresh fruit bunch yield of 7.7 tonnes per mature hectare (2015 -- 8.1 tonnes per mature hectare);
• Oil extraction rate of 19 per cent (2015 -- 19 per cent);
• Revenue of $16.5-million (2015 -- $10.9-million), a year-over-year increase of 51 per cent, primarily from the sale of 23,293 tonnes of crude palm oil at an average price of $639 per tonne (2015 -- 13,926 tonnes at $714 per tonne);
• Completed first drawdown of $15-million from the secured term facility (the DFI debt facility), and concurrent with the first drawdown, a total of $31.33-million principal amount of debentures and accrued interest converted into an aggregate of 291,693,813 common shares;
• Net loss of $11.8-million or four cents per share (2015 -- net loss of $29.4-million or 53 cents per share).

Subsequent events:

• Completed second drawdown of $10-million from the DFI debt facility on Feb. 15, 2017;
• Completed installation of new Lokutu boiler, which is now operational.

Xavier de Carniere, chief executive officer of Feronia, commented: "First and foremost, we are gradually succeeding in rebuilding this business into a financially sustainable and profitable operation, and thereby demonstrating that effective ethical investment can be a reality in the DRC.

"There have been many bumps in the road to date, and there will undoubtedly be more to come. However, it is with great satisfaction and pride that I reflect upon what we have achieved in 2016. Operationally, our production levels are increasing along a trajectory we long since predicted, and with those increases, our financial position strengthens accordingly. With the financial support of our DFI investors and lenders, we are putting in place the infrastructure to deal with the continued growth in production we expect to come, and we are making a real and positive difference on the ground for our employees, their families and those who live in the areas in which we operate.

"Operating in the remotest parts of DRC is often challenging, and those that have made the sometimes long journey to our sites can truly appreciate our achievements.

"In spite of the operational challenges and the economic and political uncertainty, we are succeeding in securing jobs, increasing wages and ensuring our employees do not suffer as a result of the country's current economic woes through the introduction of initiatives such as an index-linked pay mechanism. We are rebuilding social infrastructure and creating sustainable livelihoods. We are creating hope and opportunities in one of the poorest corners of one of the poorest countries in the world. We are re-establishing the basis of a rural economy around us, which entire provinces can build upon.

"Rebuilding a business such as ours is a singular challenge. To have built this business from scratch would have required significantly more time and capital than what has been invested to date. We are taking a relic of a bygone era and turning it in to a business fit for the 21st century. It is not easy, nor quick, nor cheap, but we firmly believe in the commercial opportunity we have before us and the positive impact that commercial opportunity will have on all of our stakeholders."

We seek Safe Harbor.