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Aphria continues expansion strategy

Aphria acquires additional 200 acres in Leamington, Ontario

LEAMINGTON, ONTARIO--(Marketwired - Dec. 14, 2016) - Aphria Inc. ("Aphria" or the "Company") (TSX VENTURE:APH)(OTCQB:APHQF) announced today that the Company entered into a purchase and sale agreement to acquire 200 acres of fully serviced vacant land for $6.24 million located at 521 Mersea Road 8, Leamington, Ontario. As the land acquired does not abut the Company's existing operations, the Company requires a new site licence from Health Canada for the property. The Company anticipates the transaction closing in January 2017.

Further, the Company announced that it removed all conditions attached to a purchase and sale agreement to acquire 5 acres of largely vacant land located on the eastern border of its existing Health Canada approved site licence. The purchase price for the 5 acres was $750,000 and is expected to close in late December 2016 or early January 2017. Concurrent with this transaction, the abutting property will be merged into Aphria's existing municipal address, thereby avoiding the need to apply for a new Health Canada site licence for this parcel of land.

"Aphria, with 52 acres of land on its primary site licence, is well on its way to its previously discussed 1 million square feet of growing space", said Vic Neufeld, Chief Executive Officer. "Securing a second site represented an important part of Aphria' diversification plans. Being able to secure a 200-acre site, in one acquisition, positions Aphria to rapidly advance its expansion plans, when demand for recreational use of cannabis is legalized."

We have a Good Thing Growing.

About Aphria

Aphria Inc., one of Canada's lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. We are committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. We were the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.

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", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, statements with respect to internal expectations, estimated margins, expectations for future growing capacity, the completion of either of the land acquisitions identified above, the completion of the Company's capital projects, any commentary related to the legalization of marijuana and the timing related thereto, expectations of Health Canada approvals 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.

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

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