Feronia Inc. Announces Closing of Restructuring Transaction

Feronia Inc. (“Feronia” or the “Company”) (TSX-V: FRN) announces that it has closed its previously announced third party sale and restructuring transaction.

As previously reported, the Company initiated debtor in possession insolvency proceedings under the Bankruptcy and Insolvency Act (Canada)(the “BIA”) on July 23, 2020 (the “NOI Proceedings”). Pursuant to an Order of the Supreme Court of British Columbia in Bankruptcy and Insolvency dated September 3, 2020, the transaction was completed pursuant to the terms of a definitive purchase agreement with Straight KKM 2 Limited, which provided for the acquisition by Feronia KNM of substantially all of the Company’s assets, including its direct and indirect equity interests in its operating subsidiary, Plantations et Huileries du Congo.

The key terms of the transaction are set forth in the press release of the Company issued on July 20, 2020, as updated in its press release dated September 10, 2020.

Following completion of the sale transaction, and the expiry of the NOI Proceedings, the Company was declared bankrupt pursuant to the BIA.

As Feronia will not meet the continued listing requirements of the TSX Venture Exchange (the "TSXV") following completion of the transaction, Feronia intends to have its common shares voluntarily delisted from the TSXV and expects to apply to Canadian securities regulators to cease to be a reporting issuer following closing.

For further information please contact:

Larry Seruma
Executive Chairman, Feronia Inc.
larry.seruma@feronia.com

Paul Dulieu
Director of Communications and Corporate Development, Feronia Inc.
44 (0)7554 521421
paul.dulieu@feronia.com

About Feronia Inc.

Feronia is an agribusiness operating in the Democratic Republic of the Congo (DRC).

At the heart of Feronia lies a long established palm oil business, PHC, which has three remotely located plantations; Lokutu, Yaligimba and Boteka.

When Feronia acquired its palm oil business from Unilever in 2009, it had suffered from years of underinvestment and considerable disruption caused by conflict in the DRC. Our initial focus has been on rebuilding the business and resuming production to secure PHC’s future and the livelihoods of the thousands of people it employs.

Feronia’s plantations produce crude palm oil (CPO) and palm kernel oil (PKO). CPO is part of the staple and traditional diet of the Congolese and, with our products sold locally in the DRC, we are well placed to help decrease reliance on imports and increase food security and quality.

Feronia prides itself on being the guardian of its 109 year-old palm oil business and its employees, communities, and environment. We have a long term commitment to improve the living and working environment of our employees and their communities and are committed to sustainable agriculture, environmental protection and community inclusion. Feronia has in place Environmental and Social Management which is focused on implementing environmental and social best practice and improving social infrastructure.

Feronia is working towards certification by the Roundtable for Sustainable Palm Oil (RSPO) and is implementing IFC/World Bank standards for environmental and social sustainability. Our oil palm replanting programme is brownfield in nature – replacing old palms with new – and it has no reliance on deforestation.

For more information please see www.feronia.com