Aphria Reports Results for Fiscal Q3 2016

Profitable quarter backed by approximately $2.7 million in revenue

Year-to-date cash break-even level achieved in quarter

LEAMINGTON, ONTARIO--(Marketwired - April 21, 2016) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) today reported its financial results for the three and nine months ended February 29, 2016. All amounts are expressed in Canadian dollars, unless otherwise stated.

Business highlights

• Closed bought deal financing, generating net proceeds of $10,485,264;
• Completed Cannway Pharmaceuticals Inc. acquisition;
• Received Health Canada approval for Part 1 expansion; and,
• Reported profitability and year-to-date cash break-even.

Revenue for the three months ended February 29, 2016 was $2,679,898, representing a 32% increase over the previous quarter's revenue of $2,026,975. Revenue for the six months ended February 29, 2016 was $6,657,613.

Adjusted gross profit for the third quarter was $1,883,225, with an adjusted gross margin of 73.4%, generated from both retail and wholesale shipments of medical marijuana. Adjusted gross profit for the year-to-date was $3,871,034, with an adjusted gross margin of 69.2%.

Net income for the three months ended February 29, 2016 was $3,720 or $0.00 per share versus a loss of $431,098 or $0.01 in the previous quarter and $3,103,111 or $0.06 per share in the same period of the prior year. The net loss for the six months ended February 29, 2016 was $904,203 or $0.02 per share versus $6,062,064 or $0.14 in the same period of the prior year.

EBITDA for the third quarter was $423,350, compared to an EBITDA loss of $631,581 in the third quarter of the prior year. The EBITDA for the year-to-date was $52,203, compared to an EBITDA loss of $2,747,356 in the same period of the prior year.

"Remaining focused on our strategic plan, the third quarter provides evidence that the Aphria team is delivering or exceeding on all of our operational metrics," says Vic Neufeld, CEO. "The team is committed to the sustainability of operational profitability and operational free cash flow. As the market and our business continues to grow, we will continue to make long-term capital investments as required."

Stock Option Grant

The Company granted 50,000 stock options to an employee and a consultant of the Company with an exercise price of $1.67 for a term of three years.

The adjusted gross profit, adjusted gross margin and EBITDA are non-GAAP measures, which are explained in Management's Discussion & Analysis, a copy of which has been filed today under the Company's profile on www.sedar.com.

About Aphria

Aphria, a company continued under the laws of the Province of Ontario and based in Leamington, Ontario, is in the business of producing, supplying and selling medical marijuana pursuant to the Marihuana for Medical Purposes Regulations (the "MMPR"). Under the MMPR, Health Canada is responsible for the oversight of commercial medical marijuana growers such as Aphria. Aphria's common shares are listed on the TSX Venture Exchange under the ticker symbol "APH".

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities laws. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "will", "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to patient growth, future long-term investments, estimated margins and expectations for future growing capacity. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving medical marijuana; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the medical marijuana industry in Canada generally, income tax and regulatory matters; the ability of Aphria to implement its business strategies; competition; crop failure; currency and interest rate fluctuations and other risks.

Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Neither the TSX Venture Exchange (the "Exchange") nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

CONTACT INFORMATION

• Aphria Inc.
  Vic Neufeld
  President & CEO
  1-844-427-4742