FRN Feronia Inc

Feronia Inc. ("Feronia" or the "Company") (TSX VENTURE:FRN) today released its
unaudited consolidated financial results for the quarter ended March 31, 2011.
All amounts in this release are expressed in US dollars unless otherwise
indicated.


James Siggs, CEO of Feronia, commented: "We are pleased to report that Feronia
continued to make significant progress towards its objectives of oil palm
replanting, increased palm oil production and land preparation for the arable
farming operations in the first quarter of 2011. On a year over year basis, palm
oil production was up 85% at 2,063 tonnes in Q1 2011. The arable farming
operations have also made good progress including completing the reclamation of
1,396 hectares of abandoned farmland by the end of March 2011."


First Quarter 2011 Financial Highlights:



--  Revenue was $1,478,481, an increase of 149% from $592,802 in the first
    quarter of 2010. 
--  Net loss was $1,297,894 for the first quarter in 2011 compared to
    $1,164,132 in the first quarter of 2010. 
--  Basic and diluted EPS for the quarter was negative $0.01 compared to
    negative $0.03 for 2010Q1. 
--  Cash balance as at March 31, 2011 was $32,671,706 compared to $290,731
    at March 31, 2010. The cash balance at December 31, 2010 was $8,907,686.



Achievement of Milestones in 2011:

During the quarter we completed an equity financing of $27,231,219 to fund the
construction of a new palm oil mill, accelerate the replanting programme in our
oil palm plantations, rehabilitate our oil palm seed production facility and
expand our arable farming operations. "Feronia's current business plan is well
funded, the Company continues to make key investments in its oil palm
plantations and arable farming operations as part of its planned growth
programme," said Mr. Siggs. 


Revenue

During the first quarter of 2011, Feronia's revenue was $1,478,481, an increase
of 149% from $592,802 in the first quarter of 2010.


During the quarter, Feronia produced approximately 11,911 tonnes of palm fruit
which were processed to produce 2,063 tonnes of CPO, compared to 6,795 tonnes of
palm fruit, producing 1,114 tonnes of CPO in the first quarter of 2010. The oil
extraction rate increased to 17.3% in the first quarter of 2011 compared to
16.4% in the first quarter of 2010.


Operating Costs

Operating costs for the first quarter of 2011 were $2,708,000, an increase of
$1,419,000, or 110%, compared to the first quarter of 2010. The increase in the
first quarter of 2011 was primarily a result of an increase in general and
operating expense of $598,000 and professional fees of $700,000. The primary
reasons for the increase in general and administrative expenses relate to
changes in the system by which management was paid and a terminal payment.
Professional fees relate to costs for the year end.


Net Loss for the Year

The net loss for the first quarter of 2011 was $1,297,894 compared to a loss of
$1,164,132 in the first quarter of 2010. 




Capital Expenditures                                                        
Capital expenditures in the first quarter increased by $1,508,118. The major
items were as follows:                                                      
    -  Rehabilitation of the palm oil mills to increase oil extraction rates
       and operating efficiencies.                                          
    -  Replanting programme of 1,027 hectares on the oil palm estates.      
    -  Development of the arable farm, reclaiming 796 hectares.             
                                                                            
Recent Developments by Business Segment                                     
Palm Oil Operations:                                                        
    -  Global spot CPO prices have remained firmly over $1000 per tonne     
       having reached a high of $1,335 in the first quarter of 2011.        
    -  At the end of May 2011, the Company's palm oil mills had achieved an 
       average oil extraction rate of 18.0% for the first five months of    
       2011, a further improvement over the 17.3% achieved in Q1 2011.      
    -  At the end of May, the Company had planted 633 hectares this year.   
                                                                            
Arable Farm Operations:                                                     
    -  Land preparation continues to advance, with over 1,800 hectares of   
       abandoned farmland reclaimed by the end of May.                      
    -  The site for the crop drying, storage and processing complex is being
       prepared and services arranged.                                      
    -  Orders have been placed for tractors, cultivation and sowing         
       equipment for the planned expansion of the arable area.              



Outlook

"Feronia continues to expand its operations according to plan," said Ravi Sood,
Chairman of Feronia. "Going forward the Company will continue to build on the
advances it has made in its oil palm plantation business. Further improvements
in the production of FFB can be expected as more plantations are rehabilitated
and further efficiencies in field operations achieved, these in turn will lead
to improved oil extraction rates and thus increased oil production. As the
company's arable operations expand, production will increase.


Food security and elevated food prices continue to be an issue of global
concern. Feronia continues to work towards displacing imports of both staple
foods and edible oils into its local market and ultimately becoming a material
and constructive supplier to international markets."


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 "plans", "proposes", "estimates", "intends", "expects",
"believes", "may", "will" and include without limitation, statements regarding
the stated use of proceeds; plan of operations and comparative advantages; and
benefits of this investment. 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.

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