Aphria's Revenues Cross Break-Even Threshold

LEAMINGTON, ONTARIO--(Marketwired - Dec. 17, 2015) -

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Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH) is pleased to announce highlights of its Second Quarter preliminary results for the period ended November 30^th, 2015, without IFRS mandated biological asset adjustments.

		Q2 - 2015			Q1 - 2015
Patients			3,400			2,200
Revenue (000's)		$	2,026.8		$	950.7
Kilograms sold			256.3			119.6
"All-in" cost of goods sold / gram		$	2.49		$	3.25
Cash cost to produce / gram		$	1.87		$	2.13
Adjusted gross margin			69%			58%

Throughout the quarter patient registrations continued to show strong growth with approximately 3,400 patients registered as of November 30th, 2015 (compared to 2,200 as of August 31^st, 2015), representing an accelerated on-boarding rate over the previous quarter.

Based on current and near-term usual operating expenses, together with the tracking of retail and wholesale revenues, the Company's break-even annualized revenues approximate $8.0 Million to $9.0 Million. During the quarter, the Company generated over $2 million in revenues from its retail and wholesale models combined, representing a 114% increase over the previous quarter's revenue. The second quarter's level of annualized sales crosses the Company's expected break-even threshold.

Continuing to leverage Aphria's low cost producer status, the Company's adjusted gross margin generated in the quarter approximates 69%. This represents an 11% increase over the prior quarter, primarily driven by continued refinements and improvements to our growing techniques.

Adjusted gross margin and cash cost to produce are non-GAAP financial measures, which are explained in the Company's Management's Discussion & Analysis under "Non-GAAP Financial Measures," a copy of which is available under the Company's corporate profile at www.sedar.com.

"November marked the one-year anniversary of our Licensed Producer status. Reaching our anticipated break-even annualized sales milestone is a significant accomplishment," said Vic Neufeld, CEO. "We are most proud of Aphria's success story to date. Year two of our journey will continue to focus on prudently managing our operating expenses and improving our greenhouse growing costs."

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 "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 internal expectations, estimated margins, expansion plans 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.

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