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ELE.TO ·

Fengro Announces Fiscal 2017 Year End Financial Results

Financials

Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6

Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com

FENGRO ANNOUNCES FISCAL 2017 YEAR END FINANCIAL

RESULTS

January 26 2018 - VANCOUVER, BRITISH COLUMBIA: FENGRO Industries

Corp. (TSX-V:FGR) (“FENGRO” or “the Company”) is pleased to announce its

year end production, sales and financial results for fiscal 2017. The Company

continues to make good progress in the development of new products, plant and

extraction improvements and expansion of its market in Brazil. The Company

increased sales to customers of its Direct Application Natural Fertilizer (“DANF”)

phosphate rock products and rationalization of its assets to focus on value-add

projects for the Company and its shareholders.

For the fiscal year ended September 30, 2017, DuSolo sold 42,294 tonnes of DANF

product of varying grades (for the year ended September 30, 2016 – sold 30,450

tonnes of DANF).

Revenue for the fiscal year ended September 30, 2017 was $2,901,425 and gross

profit for the same time period was $587,785. Net loss for the fiscal year ended

September 30, 2017 was $4,073,325 (for the year ended September 30, 2016 -

$4,071,748). This translates to a loss per common share (basic and diluted) of $0.16

for the fiscal year ended September 30, 2017 (for the year ended September 30,

2016 – $0.20 per share).

Chief Executive Officer, Giles Baynham noted that “The Company is now seeing the

benefits of the efforts of management over the past two years. We completed our

DANF Preliminary Economic Assessment (see release dated March 23, 2017),

expanded our sales by 40% and continue to see growth in sales and deliveries in to

2018. We expect to complete agrononomic trials and product rergistration in mid-

2018 and anticipate that this will increase the size of the potential market for DANF.

In addition we will be using the expertise of our management team and board to

aggressively pursue other accretive, value-adding opportunities in Brazil. I want to

thank all those management and staff, consultants, advisors and our directors for

their hard work and support through this period.”

For more information, please refer to the management discussion and analysis and

financial statements filed on SEDAR at www.sedar.com.

On behalf of Fengro Fertilizers Corp.

Giles Baynham, Chief Executive Officer and Director

For more information contact:

Email: [email protected]

Suite 1100 – 1111 Melville Street, Vancouver, B.C., Canada, V6E 3V6

Tel. 604-764-6126 Fax. 604-484-7143 | www.fengro.com

+1 (604) 764 6126

FORWARD LOOKING STATEMENTS

Certain information contained in this press release constitutes “forward-looking information”, within the meaning

of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-

looking terminology such as “aims”, “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”,

“target”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of

such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or

“will be taken”, “occur”, “be achieved” or “has the potential to”. Forward looking statements contained in this

press release may include statements regarding the future operating or financial performance of Fengro which

involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and

outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such

statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Among those factors which could cause actual results to differ materially are the following: market conditions

and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR

at www.sedar.com. The forward-looking statements included in this press release are made as of the date of

this press release and Fengro disclaims any intention or obligation to update or r evise any forward-looking

statements, whether as a result of new information, future events or otherwise, except as expressly required by

applicable securities legislation.

Disclosure - The Company’s decision to produce DANF, its DANF production targets and cash flow projections

were not based on a feasibility study of mineral reserves demonstrating economic and technical viability. Without

a technical report demonstrating economic and technical viability, there is uncertainty as to whether the Company

will be able to economically produce DANF in the long run and as to whether the Company will be confronted

with any unforeseen technical impediments. The Company has now completed a preliminary economic

assessment.

Disclosure - Note that the DANF PEA is prel iminary in nature as it includes inferred mineral resources that are

considered too speculative geologically to have the economic considerations applied to them that would enable

them to be categorized as mineral reserves. Mineral resources that are not mi neral reserves do not have

demonstrated economic viability, and as such there is no certainty that the preliminary assessment and

economics will be realized.

Neither the TSX Venture Exchange Inc. nor its Regulation Service Provider (as that term is defined in the

policies of the TSX Venture Exchange Inc.) accepts responsibility for the adequacy or accuracy of this

press release.