Aphria expands Leamington facility to 1,000,000 sq. ft.

Aphria Inc. is pleased to announce that its Board approved a $137 million capital project, known internally as Part IV expansion. The project will increase Aphria's capacity under the Access to Cannabis for Medical Purposes Regulations from 300,000 square feet to 1,000,000 square feet. In addition to the 1,000,000 greenhouse growing square feet, the Company's infrastructure will grow to over 250,000 square feet, necessary to service the expected 70,000 kilograms of eventual annualized harvests.

The project includes 700,000 square feet of Leamington standard, Dutch style greenhouses, 230,000 square feet of infrastructure, including new Level 9 vaults, automation for all of the greenhouses, processing areas, warehouse facilities, a 15 MW power and heat co-generation facility and security consistent with ACMPR standards. Aphria anticipates completion of Part IV within 12 months, Health Canada approvals within 4 months of completing the expansion and first harvest within 4 months after Health Canada approval.

Aphria is in the midst of completing its previously disclosed 57,000 square foot Part II expansion and its 200,000 square foot Part III expansion. Part II expansion has reached the point that the Company has requested that Health Canada perform its inspection of the expansion. The Company anticipates increasing production capacity from 2,800 kgs annually to 7,500 kgs annually and is on target for full crop rotation by June 2017, once Part II expansion is approved by Health Canada. Part III expansion remains on schedule and on budget, with expected completion in late October 2017, Health Canada approval in January 2018 and reaching full crop rotation by the end of April 2018. The Company anticipates increasing production capacity from 7,500 kgs to 21,000 kgs, once Part III expansion is approved by Health Canada.

"Demand for medical cannabis remains strong," said Vic Neufeld, Chief Executive Officer. "Additional future medical cannabis distribution channels will only add to that demand. With over 260 acres of assembled land, Aphria has positioned itself to grow as the market for cannabis grows."