1

AphriaentersintoIPtransferagreementinArizonaAphriasecures5%membershipinterestinCopperstateFarms,LLC

Leamington,Ontario–October27,2016–AphriaInc.(“Aphria”orthe“Company”)(TSX-V:APHorUSOTCQB:APHQF)announced today that it has entered into an Intellectual Property transfer agreement with Copperstate Farms, LLC(“Copperstate”). Arizona’smedical cannabisprogramwasapprovedbyvoters in2010. At thesame timeas securingalicencetoproduceandsellmedicalcannabis,Copperstatepurchaseda40-acre(equivalentto1.7millionsquarefeet)high-tech,Dutchstylegreenhousefacility inSnowflake,AZ. Copperstatehasoneofthe largestmedicalcannabisgreenhousefacilities in Arizona. As part of the transaction, Aphria will share its accumulated knowledge, gained during its 5-yearMMAR/MMPR/ACMPRjourney,relatedtogrowingcannabis ingreenhousesinexchangefora5%‘cashless’membershipinterestinCopperstate,entitlingAphriato5%ofthefreecashflowgeneratedbyCopperstate.The remainingmembership interestsofCopperstatewillbeheldbyCopperstateFarms Investors LLC (“Investors”). TheGeneral Partners of Investors are Fife Symington and Scott Barker. Mr. Symington, a 20-year veteran of greenhousegrowing,ownsover850coveredacresofgreenhouses(equivalentto37millionsquarefeet)inMexicoandshipsover175millionpoundsofvegetablestotheUnitedStatesannually.Aspartofthetransaction,AphriainvestedasaLimitedPartner,purchasingsufficientmembershipinterestsinInvestorstobringAphria’stotalflow-thruownershipinCopperstateto10%.“The opportunity to combine Aphria’s commercial agricultural growing experience, with one of the preeminentcommercialagriculturalgrowersinMexicoandtheUnitedStates,createsagrowingdreamteam”,saidVicNeufeld,Chief ExecutiveOfficer of Aphria. “Aphria is excited to share our cultivation expertise as a low cost producer ofmedical cannabiswith Copperstate, helping Copperstate decrease its time tomarket and leveraging itself up themedicalcannabisgrowinglearningcurve.”

ThetransactionremainssubjecttoTSXVentureExchangeapproval.WehaveAGoodThingGrowing.

AboutAphria

Aphria Inc., one of Canada’s lowest cost producers, produces, supplies and sells medical cannabis. Located inLeamington,Ontario,thegreenhousecapitalofCanada.Aphriaistrulypoweredbysunlight,allowingforthemostnatural growing conditions available. We are committed to providing pharma-grade medical cannabis, superiorpatient care while balancing patient economics and returns to shareholders. We are the first public licencedproducer to report positive cash flow from operations and the first to report positive earnings in consecutivequarters.

Forfurtherinformationpleasecontact:

VicNeufeldPresident&CEO1-844-427-4742CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news releaseconstitutesforward-lookingstatementsunderapplicablesecurities laws.Anystatementsthatarecontained inthisnewsreleasethatarenotstatementsofhistoricalfactmaybedeemedtobeforward-lookingstatements.Forward-lookingstatementsareoftenidentifiedbytermssuchas“may”,“should”,“anticipate”,“expect”,“believe”,“intend”orthenegativeofthesetermsandsimilarexpressions.Forward-lookingstatementsinthisnewsreleaseinclude,butare not limited to, statements with respect to internal expectations, estimated margins, expectations for futuregrowing capacity, the expected growth of production facilities in North America, any commentary related to the

2

legalizationofmarijuanaandthetimingrelatedthereto,andexpectationswithrespecttofutureproductioncosts.Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risksassociated with general economic conditions; adverse industry events; marketing costs; loss of markets; futurelegislative and regulatory developments involving medical marijuana; inability to access sufficient capital frominternalandexternalsources,and/orinabilitytoaccesssufficientcapitalonfavourableterms;themedicalmarijuanaindustry in Canada generally, income tax and regulatorymatters; the ability of Aphria to implement its businessstrategies;competition;cropfailure;currencyandinterestratefluctuationsandotherrisks.Readersarecautioned that the foregoing list isnotexhaustive.Readersare furthercautionednot toplaceunduerelianceonforward-lookingstatementsastherecanbenoassurancethattheplans,intentionsorexpectationsuponwhichtheyareplacedwilloccur.Suchinformation,althoughconsideredreasonablebymanagementatthetimeofpreparation,may prove to be incorrect and actual resultsmay differmaterially from those anticipated. Forward-lookingstatementscontainedinthisnewsreleaseareexpresslyqualifiedbythiscautionarystatement.NeithertheTSXVentureExchange(the“Exchange”)noritsRegulationServicesProvider(asthattermisdefinedinthepoliciesoftheExchange)acceptsresponsibilityfortheadequacyoraccuracyofthisrelease.