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Nov. 7, 2019, 6:30 a.m. EST

Aphria Inc. to Participate in Jefferies West Coast Consumer Conference

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LEAMINGTON, ON, Nov. 7, 2019 (Canada NewsWire via COMTEX) -- Provides an Update on Forward-Looking Information

Aphria Inc. ("Aphria" or the "Company") , today announced its participation in the Jefferies West Coast Consumer Conference on November 12, 2019 in San Francisco, California.

The Company's Chief Financial Officer Carl Merton will be holding pre-scheduled one-on-one meetings.

Forward-Looking Information

In the Issuer's fourth quarter earnings press release dated August 1, 2019, the Issuer provided guidance for its 2020 revenue of $650-700 million of sales, with distribution revenue representing slightly more than one half of the total net revenue and $88-95 million of Adjusted EBITDA.

The Issuer arrived at this revenue guidance based on the following:

                      Aphria Inc.
                Q4 to 2020 revenue forecast reconciliation
                 000,000's)                       514,000,000                  514,000,000
                 revenue                          136,000,000                  186,000,000
                 guidance                         650,000,000                  700,000,000

i. The increase in cannabis revenue is driven by three factors:

                       A.               Incremental capacity at the Issuer
                                         Aphria One facility. During the
                                         fourth quarter ended May 31,
                                         2019, the Issuer received full
                                         licensing for this facility,
                                         which is expected to have a
                                         capacity of 110,000 kgs. As a
                                         result of the time period to ramp
                                         up the facility, the Issuer's
                                         sales in the fourth quarter ended
                                         May 31, 2019 were only 20,000
                                         kgs, if annualized. During fiscal
                                         2020, the Issuer has and will be
                                         ramping up its production
                                         capability to reach its expected
                                         annualized capacity;
                       B.               Incremental capacity at the
                                         Issuer's Aphria Diamond facility.
                                         Aphria Diamond's annualized
                                         capacity is expected to be
                                         140,000 kgs. Aphria Diamond
                                         received its license for this
                                         facility on November 1, 2019. The
                                         ramp up period for Aphria Diamond
                                         will mirror the ramp up period
                                         experienced at the Aphria One
                                         facility. The Issuer notes that
                                         sales of 20,000 kgs of production
                                         grown at the Aphria Diamond
                                         facility before fiscal year-end
                                         are expected to generate between
                                         $80,000,000 and $100,000,000 of
                                         revenue; and
                       C.               Incremental revenue earned on
                                         production that is sold through
                                         international channels versus in
                                         Canada. The Issuer anticipates
                                         that prior to the end of calendar
                                         2019, it will receive EU-GMP
                                         certification on at least two of
                                         its global facilities. Sales of
                                         EU-GMP certified cannabis have
                                         historically resulted in average
                                         selling prices higher than
                                         current wholesale prices in

Major risk factors relating to the assumptions above include:

                       a)               No substantial crop losses.
                                         Historically Aphria has not
                                         experienced any significant crop
                                         losses and Aphria, like other
                                         growers, plants and generates
                                         product from greenhouse and
                                         indoor facilities which reduce
                                         the impact of unpredictable
                                         weather patterns. However, crop
                                         loss due to disease or pests is
                                         always a risk and Aphria has
                                         highly experienced staff and
                                         processes in place to mitigate
                                         these risks.
                       b)               Aphria Diamond production ramp
                                         consistent with Aphria One's ramp
                                         up of Part IV or better. Aphria's
                                         experience and past performance
                                         has demonstrated a two to three-
                                         month period before first harvest
                                         in a new expansion. Management
                                         believes that Aphria Diamond
                                         production will be consistent
                                         with past practice.
                       c)               Receipt of EU-GMP certification
                                         during the third quarter ended
                                         February 2020 and any changes in
                                         government policy, regulation or
                                         licensing review process related
                       d)               Sufficient international demand
                                         for product that any sales
                                         headwinds in Canada are offset by
                                         international demand. Aphria
                                         believes that international
                                         demand for medicinal cannabis is
                                         on the rise as more European
                                         countries legalize its use and
                                         prescription, and will broaden
                                         Aphria's revenue base, further
                                         reducing dependence on the
                                         Canadian market.
                       e)               Consistent average selling price
                                         equal to fourth quarter average
                                         selling price. As of the second
                                         quarter of full sales since
                                         legalization, the Issuer is able
                                         to better determine a market
                                         price and focus on the most
                                         profitable products ensuring it
                                         is able to combat any price

We Have A Good Thing Growing

About Aphria Inc.Aphria Inc. is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Headquartered in Leamington, Ontario - the greenhouse capital of Canada - Aphria Inc. has been setting the standard for the low-cost production of high-quality cannabis at scale, grown in the most natural conditions possible. Focusing on untapped opportunities and backed by the latest technologies, Aphria Inc. is committed to bringing breakthrough innovation to the global cannabis market. The Company's portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. Rooted in our founders' multi-generational expertise in commercial agriculture, Aphria Inc. drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion, with a presence in more than 10 countries across 5 continents.

For more information, visit: aphriainc.com

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", "potential", "believe", "intend" or the negative of these terms and similar expressions. Forward-looking statements in this news release include, but are not limited to, 2020 revenue guidance and statements with respect to expected incremental production capacity and sales through international channels. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, those set forth above under the "Forward Looking Information" section; risks associated with general economic conditions; adverse industry events; marketing costs; loss of markets; future legislative and regulatory developments involving cannabis; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally, income tax and regulatory matters; the ability of Aphria Inc. 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 and should carefully review the various risks and uncertainties identified in the Company's filings on SEDAR and EDGAR. 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.

The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

View original content to download multimedia: http://www.prnewswire.com/news-releases/aphria-inc-to-participate-in-jefferies-west-coast-consumer-conference-300953498.html

SOURCE Aphria Inc.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2019/07/c5550.html

SOURCE: Aphria Inc.

        For media inquiries please contact: Tamara Macgregor, Vice President, Communications
        & Public Affairs, Aphria Inc., tamara.macgregor@aphria.com, 437-343-4000; For
        investor inquiries please contact: Katie M. Turner, ICR, Inc.,
        katie.turner@icrinc.com, 646-277-1228

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