Mr. Jack Benne reports

BEVO AGRO INC. REPORTS FISCAL 2014 RESULTS

Bevo Agro Inc.'s sales for the year ending June 30, 2014, totalled $23,309,085, an increase of $2,721,881 or 17 per cent over the previous year. Sales for the same 12-month period in 2013 totalled $20,587,204. Sales to Canadian clients increased by 28 per cent. Approximately 90 per cent of Bevo's sales result from repeat orders through recurring multiyear contracts.

The acquisition of additional land and greenhouse facilities located in Pitt Meadows, B.C., was announced on June 11, 2014. The acquisition had no material impact on the financial results for the year ending June 30, 2014.

Gross profit for the 12 months was $5,918,741, compared with $5,083,066 for fiscal 2013. Gross margin percentages are consistent with previous years.

Earnings before interest, taxes, depreciation and amortization (EDITDA) increased 17 per cent to $3,359,710 over EBITDA of $2,815,045 for the year ending June 30, 2013.

General operating and employee expenses increased by $105,731, with the increased sales, however, are constant with previous years as a percentage of sales.

Interest expense declined slightly with reduced borrowings. The company maintains a balance of fixed and floating rates on borrowings as a hedge against interest-rate fluctuations.

The company did not incur any losses for bad debts in the most recent year as it monitors customer receivables on a regular basis.

Net earnings for the year ending June 30, 2014, were $738,745 (3 per cent of sales) compared with $184,533 (1 per cent of sales) last year.

                           FINANCIAL SUMMARY

                                      June 30, 2014   June 30, 2013

Sales                                   $23,309,085     $20,587,204
Cost of sales                           $17,390,344     $15,504,138
Gross margin                             $5,918,741      $5,083,066
Expenses
General operating                        $1,251,056      $1,259,385
Employee wages and benefits              $1,327,364      $1,213,304
Amortization                             $1,575,427      $1,580,709
Interest expenses                          $861,038        $890,049
Provision for bad debts                          $0              $0
Earnings (loss) from operations            $903,856        $139,619
Other                                       $19,389         $19,324
Earnings before taxes                      $923,245        $158,943
Income taxes -- current                          $0              $0
Income taxes -- future                     $184,500        -$25,590
Net earnings (loss) for period             $738,745        $184,533
Other comprehensive income                 $742,500             $ 0
Net income and comprehensive income      $1,481,245        $184,533
EBITDA                                   $3,359,710      $2,815,045
Shares outstanding                       25,535,933      25,535,933
EPS per share                                 $0.03           $0.01
EBITDA per share                              $0.13           $0.11

Because revenue is accounted as "when goods are shipped," the company provides the summary of trailing 12-month financial performance in the associated table.

                                                                                      12 months ending
                                  June 30, 2011     June 30, 2012      June 30, 2013     June 30, 2014

Sales                               $18,263,703       $18,897,742        $20,587,204       $23,309,085
Gross margin                         $4,538,849        $4,757,872         $5,083,066        $5,918,741
Net earnings (loss) for period          $44,128          $571,781           $184,533          $738,745
EBITDA                               $2,210,728        $2,605,826         $2,815,045        $3,359,710

Readers are encouraged to view the company's year-end audited financial statements, and accompanying management discussion and analysis on SEDAR.