Aphria Continues to Capitalize on its Growing Strengths

Leamington, Ontario – December 15th, 2015 – Aphria Inc. (“Aphria” or the “Company”) (TSX-V: APH) is pleased to announce that it has recently entered into wholesale contracts for the sale of dried medical cannabis to multiple other Licensed Producers. As part of the contracts, the Company has signed commitments from Licensed Producers to purchase up to 450 kilograms over the next year, depending on market conditions and strain selections. Anticipated annual revenue generated from these contracts is up to $1,600,000. Adjusted gross margins from these contracts are anticipated to range between 35-45%, depending on the selected strain and quantity supplied.

“Leveraging on our growing strengths of strain selections that are in demand and Aphria`s low cost producer status, these contracts further endorse our secondary strategy of wholesaling dried cannabis. Despite continued growth in our patient onboarding platform, which represents our primary retail strategy, we have been able to successfully balance the demand for Aphria products, generating strong financial returns.” said Vic Neufeld, CEO.

Adjusted gross margin is a non-GAAP financial measure, which is 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.

About Aphria

Aphria Inc., 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”. For more information, visit aphria.ca.

For further information please contact:

Vic Neufeld
President & CEO

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 forwardlooking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “anticipate”, “expect”, “believe”, “intend” or the negative of these terms and similar expressions. Forwardlooking statements in this news release include, but are not limited to, statements with respect to internal expectations, estimated margins, expectations for future growing capacity and expectations with respect to future production costs. 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