Aphria Partners With Leading International Consumer Lifestyle Brand Tokyo Smoke

First-ever cannabis licensing deal in Canada between consumer brand and licensed medical cannabis producer

TORONTO, ONTARIO--(Marketwired - Sept. 7, 2016) - Today Aphria Inc. ("Aphria") (TSX VENTURE:APH) (OTCQB:APHQF), one of Canada's leading licensed producers of medical cannabis, announced a groundbreaking licensing deal with Tokyo Smoke, a premium cannabis-oriented lifestyle brand. The transaction will be the first-of-its-kind in Canada as it combines a premium consumer lifestyle brand and a licensed producer and seeks to pave the way for how future cannabis brands operate in Canada. The deal will allow Aphria to ship Tokyo Smoke branded cannabis in Canada to registered patients through the Access to Cannabis for Medical Purposes Regulations (ACMPR) system, which will be available online by year's end.

"Aphria is one of the most trusted producers of medical cannabis, and this partnership with Tokyo Smoke affirms our commitment to expand and diversify our product offering and market channels," said Vic Neufeld, Chief Executive Officer of Aphria. "When cannabis is legalized for recreational use in Canada, a strong brand will be one of the key differentiators for patients and consumers, and we're committed to working with Tokyo Smoke to be the first premium cannabis brand in Canada."

Tokyo Smoke is an award-winning lifestyle brand that brings sophistication and design to coffee, clothing and cannabis. Each vertical of the brand is designed around four emotive states, which tie together the coffee, cannabis strains, and clothing. Tokyo Smoke worked alongside of Aphria to handpick its strain offerings and Aphria will grow and prepare Tokyo Smoke's four proprietary cannabis experiences at its licensed facility in Leamington, Ontario. Each of the four strains are based on the following emotive states:

  1. Go - an energizing, awakening sativa;
  2. Relax - an easing indica;
  3. Relief - a soothing cannabidiol;
  4. Balance - a blissful, even hybrid.

Aphria is a Health Canada-licensed producer of medical cannabis, whose quality products are 100 per cent greenhouse grown and powered by sunlight, allowing for the most natural growing conditions available.

"This licensing deal represents the next big step in Tokyo Smoke's vision to elevate the cannabis experience in Canada and we're beyond excited to be partnering with Aphria, a top Canadian grower, to bring our product to the mainstream medical market," said Alan Gertner, Chief Executive Officer of Tokyo Smoke. "With this groundbreaking deal, we're giving Canadians a glimpse into the future of cannabis in the country, proving that two brands can come together to offer consumers increased choice and quality."

For more information, consumers can sign up at www.tokyosmoke.com to be among the first notified when the cannabis becomes available.

About Tokyo Smoke

Tokyo Smoke is an award-winning lifestyle brand that brings sophistication and design to coffee, clothing and cannabis. Founded by father and son, Lorne and Alan Gertner, Tokyo Smoke is based on a strong passion for design and strong desire to elevate the cannabis landscape. Located in Toronto, Ontario, the brand's flagship location, Tokyo Smoke Found, launched in April 2015. Tokyo Smoke will expand its retail and recreational cannabis presence into the United States in 2017.

About Aphria Inc.

Aphria Inc., one of Canada's leading Licenced Producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada, Aphria produces, supplies and sells medical cannabis. Aphria is truly powered by sunlight, allowing for the most natural growing conditions available. The company is committed to providing pharma-grade medical cannabis and superior patient care while balancing patient economics and returns to shareholders.

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", "will" "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, any commentary related to the legalization of marijuana and the timing related thereto, expectations with respect to the availability of products and expectations of Health Canada approvals. 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.

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