Aphria Inc. ("Aphria" or the "Company") (TSX:APH)(OTCQB:APHQF), through its subsidiary Pure Natures Wellness Inc. (o/a Aphria), is pleased to announce that it entered into a major wholesale supply agreement with HydRx Farms, Ltd. (o/a Scientus Pharma) ("Scientus Pharma"). Under the terms of the Agreement, Aphria is committing to supply over 25,000 fully grown medical cannabis plants over the next 12 months to Scientus Pharma. The first delivery, under the agreement will occur in the middle of Aphria's second quarter of 2018. Aphria expects to generate over $1.2 million of revenue from the wholesale supply agreement in each full quarter of shipments, with gross margins consistent with previously executed wholesale agreements.

Scientus Pharma, a vertically-integrated biopharmaceutical company, is raising the bar of cannabinoid products from medical-grade to pharmaceutical-grade. Leveraging its proprietary, patent-pending formulation and processing technologies, Scientus Pharma is committed to leading the medical cannabis market towards pharmaceutical standards in manufacturing, formulations and dosing.

"Scientus Pharma shares our vision for providing high-quality products to medical cannabis patients, which is enabled by our 509-step Seed-to Sale quality assurance program," said Vic Neufeld, Chief Executive Officer of Aphria. "Through this agreement, Scientus Pharma will get access to clean and safe cannabis, which is necessary in the biopharmaceutical cannabis industry. In return, Aphria will benefit from guaranteed product distribution advancing Aphria's growth strategy."

"Scientus Pharma intends to leverage this key raw material supply contract to help it lead the evolution of cannabinoid products from medical-grade to pharmaceutical-grade," said Trevor Folk, Chief Executive Officer of Scientus Pharma. "Our proprietary extraction technology platform has solved the resin consistency issue that has here-to-for prevented that scientific advancement, and it is the foundation for Scientus Pharma's pipeline of novel products."

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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. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders. Aphria was the first public licenced producer to report positive cash flow from operations and the first to report positive earnings in consecutive quarters.

About Scientus Pharma

Scientus Pharma is a vertically-integrated biopharmaceutical Licensed Dealer under the Narcotics Control Regulations of Canada with a focus on developing and commercializing pharmaceutical-grade cannabinoid derivative products. Being one of a limited number of Licensed Dealers in Canada authorized to handle cannabinoid products, Scientus Pharma has the ability to wholesale, buy, process and sell cannabinoid derivatives, from and to Licensed Producers, as well as international markets.