Download - Aphria’s Vision to be Reality – Part IV expansion project to increase greenhouse ... · Aphria’s Vision to be Reality – Part IV expansion project to increase greenhouse growing

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Aphria’sVisiontobeReality–PartIVexpansionprojecttoincreasegreenhousegrowingspaceto1millionsquarefeet

Projectnecessarytosupportedcontinuedmid-termdemandexpectations

Leamington,Ontario–January16,2017–AphriaInc.(“Aphria”orthe“Company”)(TSX-V:APHandUSOTC:APHQF)ispleasedtoannouncethatitsBoardapproveda$137millioncapitalproject,knowninternallyasPartIVexpansion(“PartIV”).TheprojectwillincreaseAphria’scapacityundertheAccesstoCannabisforMedicalPurposesRegulations(“ACMPR”)from300,000squarefeetto1,000,000squarefeet.Inadditiontothe1,000,000greenhousegrowingsquarefeet,theCompany’sinfrastructurewillgrowtoover250,000squarefeet,necessarytoservicetheexpected70,000kilogramsofeventualannualizedharvests.

The project includes 700,000 square feet of Leamington standard, Dutch style greenhouses, 230,000 square feet ofinfrastructure,includingnewLevel9vaults,automationforallofthegreenhouses,processingareas,warehousefacilities,a15 MW power and heat co-generation facility and security consistent with ACMPR standards. Aphria anticipatescompletionofPartIVwithin12months,HealthCanadaapprovalswithin4monthsofcompletingtheexpansionandfirstharvestwithin4monthsafterHealthCanadaapproval.Aphriaisinthemidstofcompletingitspreviouslydisclosed57,000squarefootPartIIexpansionandits200,000squarefootPartIIIexpansion.PartIIexpansionhasreachedthepointthattheCompanyhasrequestedthatHealthCanadaperformitsinspectionoftheexpansion.TheCompanyanticipatesincreasingproductioncapacityfrom2,800kgsannuallyto7,500kgsannuallyandisontargetforfullcroprotationbyJune2017,oncePartIIexpansionisapprovedbyHealthCanada.PartIIIexpansionremainsonscheduleandonbudget,withexpectedcompletioninlateOctober2017,HealthCanadaapprovalinJanuary2018and reaching full crop rotationbytheendofApril2018. TheCompanyanticipates increasingproductioncapacityfrom7,500kgsto21,000kgs,oncePartIIIexpansionisapprovedbyHealthCanada."Demand for medical cannabis remains strong,” said Vic Neufeld, Chief Executive Officer. "Additional future medicalcannabisdistributionchannelswillonlyaddtothatdemand.Withover260acresofassembledland,Aphriahaspositioneditselftogrowasthemarketforcannabisgrows.”WehaveAGoodThingGrowing.AboutAphria

Aphria Inc., one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located inLeamington,Ontario,thegreenhousecapitalofCanada.Aphriaistrulypoweredbysunlight,allowingforthemostnatural growing conditions available. We are committed to providing pharma-grademedical cannabis, superiorpatient care while balancing patient economics and returns to shareholders. We are the first public licencedproducer to report positive cash flow from operations and the first to report positive earnings in consecutivequarters.Aphria’scommonsharesarelistedontheTSXVentureExchangeunderthetickersymbol“APH”andontheUSOTCmarketunderthetickersymbol“APHQF”.Formoreinformation,visitwww.Aphria.com.

Forfurtherinformationpleasecontact:

VicNeufeldPresident&CEO1-844-427-4742

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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news releaseconstitutesforward-lookingstatementsunderapplicablesecuritieslaws.Anystatementsthatarecontainedinthisnewsreleasethatarenotstatementsofhistoricalfactmaybedeemedtobeforward-lookingstatements.Forward-lookingstatementsareoftenidentifiedbytermssuchas“may”,“should”,“anticipate”,“expect”,“believe”,“intend”orthenegativeofthesetermsandsimilarexpressions.Forward-lookingstatementsinthisnewsreleaseinclude,butarenotlimitedto,statementswithrespecttointernalexpectations,estimatedcompletiondatesofcapitalprojects,expectationsofHealthCanadaapprovals, expectations for futuregrowing capacity, the completionof the capitalproject, any commentary related to the legalizationofmarijuana and the timing related thereto, expectationsofPharmacy’sentry intothemedicaland/orrecreationalcannabis industryandexpectationswithrespecttofutureproduction costs. Forward-looking statements necessarily involve known and unknown risks, including, withoutlimitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss ofmarkets; future legislative and regulatorydevelopments involvingmedicalmarijuana; inability to access sufficientcapital from internal and external sources, and/or inability to access sufficient capital on favourable terms; themedical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria toimplementitsbusinessstrategies;competition;cropfailure;currencyandinterestratefluctuationsandotherrisks.Readersarecautionedthattheforegoing list isnotexhaustive.Readersare furthercautionednottoplaceunduereliance on forward-looking statements as there can be no assurance that the plans, intentions or expectationsuponwhich theyareplacedwilloccur.Such information,althoughconsidered reasonablebymanagementat thetime of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.Forward-lookingstatementscontainedinthisnewsreleaseareexpresslyqualifiedbythiscautionarystatement.NeithertheTSXVentureExchange(the“Exchange”)noritsRegulationServicesProvider(asthattermisdefinedinthepoliciesoftheExchange)acceptsresponsibilityfortheadequacyoraccuracyofthisrelease.