Feronia Inc. Announces Strategic Investment from Phatisa's African Agriculture Fund

Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) is pleased to
announce that it has entered into a share subscription agreement with the
African Agriculture Fund ("AAF") managed by Phatisa Fund Managers Limited
("Phatisa"). All amounts in this release are expressed in Canadian dollars
unless otherwise indicated.


AAF, through one of its subsidiaries, has agreed to subscribe for common shares
in the capital of the Company in two tranches. In the first tranche, AAF has
agreed to purchase 42,028,000 common shares at a purchase price of $0.12 per
share for an aggregate purchase price of approximately $5.0 million. Following
such investment, AAF will indirectly hold 19.9% of the Company's issued and
outstanding common shares. 


Following completion of the first tranche and subject to TSX Venture Exchange
("TSXV") approval, the Company will appoint two AAF-nominees, Mr. David White
and Mr. Anders Einarsson, to the Company's Board of Directors. One or both of
such nominees will also act on the various committees of the Board. Mr. White is
a graduate in Economics and Business, and has extensive experience of Africa,
having lived and worked in Nigeria during the early stages of his banking
career. He is currently also Chairman of a palm oil company in Sierra Leone and
a member of the Investment Committee of AAF. Mr. Einarsson is a graduate in
Business and has spent his career in corporate finance and investment activities
in emerging markets. Anders is a Deal Partner at Phatisa.


In the second tranche, the Company is proposing to issue up to 82,500,000 common
shares to AAF and other qualifying investors on a private placement basis at a
price of $0.12 per share for gross proceeds of up to $9.9 million. AAF has
agreed to purchase in the second tranche up to 46,009,000 common shares for
gross proceeds of up to approximately $5,550,000. 


The completion of the two tranches is subject to various terms and conditions as
set out in the subscription agreement including TSXV approval with respect to
both tranches and shareholder approval with respect to the second tranche. The
first tranche is expected to close in early January 2013 with the second tranche
expected to close immediately following a meeting of the Company's shareholders
anticipated to take place in late February 2013.


The AAF is a leading pan-African agriculture and food private equity fund that
is managed by Phatisa, an Africa-based private equity investment management
firm. The AAF includes among its limited partner investors a number of European
development finance institutions ("DFIs") such as the Agence Francaise de
Developpement (AFD), the Spanish Agency for International Development
Cooperation (AECID), and Promotion et Participation pour la Cooperation
Economique (Proparco); a number of African DFIs such as the African Development
Bank (AfDB), the Development Bank of Southern Africa (DBSA), the West African
Development Bank (BOAD) and the ECOWAS Bank of Investment and Development
(EBID); and other private European and USA investors.


"This strategic investment in Feronia is AAF's second African palm oil
investment and we see opportunities to grow this asset profitability, while
meeting important development objectives," says Valentine Chitalu, Chairman of
Phatisa Group.


The AAF also has an associated Technical Assistance Facility ("TAF") of EUR10
million which provides technical assistance to agri and food-related businesses
that receive investment through the AAF, allowing them to create new
opportunities for small-holder farmers, farmer business groups and rural
communities. The TAF is funded primarily by the European Commission and managed
by the International Fund for Agricultural Development (IFAD). It is also
co-sponsored by the Italian Development Corporation, United Nations Industrial
Development Organisation (UNIDO) and the Alliance for a Green Revolution in
Africa (AGRA). The Company's management is optimistic that as a result of AAF's
strategic investment, the TAF can be accessed to provide a grant to accelerate
the Company's goal of facilitating small-holder farming in the vicinity of its
operations.


The Company's management and Board of Directors believe that the strategic
investment from AAF positions the Company well from a working capital
perspective in the short-term, and to access non-dilutive forms of growth
funding from other sources in the medium and long-term. "The investment from
Phatisa's African Agriculture Fund is a significant milestone for the Company.
It is a major endorsement from one of the continent's most sophisticated
investors and is expected to have many long-term benefits that greatly exceed
the initial cash investment" said Ravi Sood, Executive Chairman of Feronia. "We
are pleased to welcome the fund as a significant shareholder and active
supporter of management's efforts to achieve our business objectives and create
value for shareholders."


About Feronia Inc.

Feronia Inc. is a large-scale commercial farmland and plantation operator in the
Democratic Republic of the Congo ("DRC"). The Company uses modern agricultural
practices to operate and develop its oil palm plantations and arable farming
business division. Feronia believes in the immense agricultural potential of the
DRC for high-quality foodstuffs and edible oils given its ideal climate,
excellent soil and highly skilled and experienced workforce. Feronia's
management team is comprised of senior agriculturalists with extensive
experience in managing both plantations and large-scale mechanized farming
operations in emerging markets. Feronia is committed to sustainable agriculture,
environmental protection and providing support for local communities. For more
information please see, www.feronia.com. 


Cautionary Notes

Except for statements of historical fact contained herein, the information in
this press release constitutes "forward-looking information" within the meaning
of Canadian securities law. Such forward-looking information may be identified
by words such as "anticipates", "plans", "proposes", "estimates", "intends",
"expects", "believes", "may", "will" and include without limitation, statements
regarding proposed capital expenditure; the Company's plan of operations and
comparative advantages; plans regarding sowing rice and replanting oil palms;
sales estimates and inventory levels in the fourth quarter of 2011; improvements
in harvesting and collection; and positive trends regarding OERs. There can be
no assurance that such statements will prove to be accurate; actual results and
future events could differ materially from such statements. Factors that could
cause actual results to differ materially include, among others, regulatory
risks, risks inherent in foreign operations, commodity prices, competition, and
investments having no history of operations. Most of these factors are outside
the control of the Company. Investors are cautioned not to put undue reliance on
forward-looking information. Except as otherwise required by applicable
securities statutes or regulation, the Company expressly disclaims any intent or
obligation to update publicly forward-looking information, whether as a result
of new information, future events or otherwise.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Feronia Inc.
Ravi Sood
Chairman
[phone]
[e-mail]
www.feronia.com


Feronia Inc.
Bill Dry
CEO
44 (0) 7887 525 046
[e-mail]
www.feronia.com