BEVO AGRO INC. 7170 Glover Road, Langley, BC V0X 1T0 (www.bevoagro.com) NEWS RELEASE (Langley, BC.) October 20, 2014 BEVO AGRO INC. REPORTS FISCAL 2014 RESULTS. Bevo Agro Inc. (TSXV: BVO) sales for the year ending June 30, 2014 totaled $23,309,085, an increase of $2,721,881 or 17% over the previous year. Sales for the same 12 month period in 2013 totaled $20,587,204. Sales to Canadian clients increased by 28%. Approximately 90% of Bevo’s sales result from repeat orders through recurring multiyear contracts. The acquisition of additional land and greenhouse facilities located in Pitt Meadows, BC was announced on June 11, 2014. The acquisition had no material impact on the financial results for the year ending June 30, 2014. Gross profit for the 12 months was $5,918,741 compared to $5,083,066 for fiscal 2013. Gross margin percentages are consistent with previous years. Earnings before interest, taxes, depreciation and amortization (EDITDA) increased 17% to $3,359,710 over EBITDA of $2,815,045 for the year ending June 30, 2013. General operating and employee expenses increased by $105,731 with the increased sales however are constant with previous years as a percentage of sales. Interest expense declined slightly, with reduced borrowings. The company maintains a balance of fixed and floating rates on borrowings as a hedge against interest rate fluctuations. The company did not incur any losses for bad debts in the most recent year as it monitors customer receivables on a regular basis. Net earnings for the year ending June 30, 2104 were $738,745 (3% of sales) compared to $184,533 (1% of sales) last year. Financial Summary For the year ending Sales Cost of Sales Gross Margin Expenses General Operating Employee Wages & Benefits Amortization Interest expenses Provision for Bad debts Earnings (loss) from operations June 30, 2014 $23,309,085 $17,390,344 100% 75% June 30, 2013 $20,587,204 $15,504,138 100% 75% $5,918,741 25% $5,083,066 25% $1,251,056 $1,327,364 $1,575,427 $861,038 $0 5% 6% 7% 4% $1,259,385 $1,213,304 $1,580,709 $890,049 $0 6% 6% 8% 4% $903,856 4% $139,619 1% Other Earnings before taxes Income taxes-current Income taxes-future $19,389 $923,245 $0 $184,500 0% 4% $19,324 $158,943 $0 -$25,590 0% 1% Net earnings (loss) for period Other comprehensive income Net income and comprehensive income $738,745 $742,500 $1,481,245 3% $184,533 $0 $184,533 1% EBITDA $3,359,710 14% $2,815,045 14% Shares o/s EPS/Share EBITDA/share 25,535,933 $0.03 $0.13 1% 0% 25,535,933 $0.01 $0.11 Because revenue is accounted as “when goods are shipped”, the Company provides the following summary of trailing twelve month financial performance. Twelve months ending Sales Gross Margin Net earnings (loss) for period EBITDA June 30. '11 $18,263,703 $4,538,849 $44,128 $2,210,728 June 30. '12 $18,897,742 $4,757,872 $571,781 $2,605,826 June 30. '13 $20,587,204 $5,083,066 $184,533 $2,815,045 June 30. '14 $23,309,085 $5,918,741 $738,745 $3,359,710 Summary of the Consolidated Balance Sheet dated June 30, 2014 ASSETS Current Property, Plant, Equip. Goodwill $5,209,942 $32,681,474 $522,665 $38,414,081 LIABILITIES Current Long term Deferred income tax Shareholder Equity $3,728,574 $17,208,836 $1,581,099 $15,895,572 $38,414,081 Readers are encouraged to view the Company’s year-end audited financial statements and accompanying MD&A at www.sedar.com. Bevo Agro is North America's leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America's growers. Bevo propagates quality seedlings and plants for wholesale vegetable greenhouse growers, field growers and nursery operators from state of the art greenhouse facilities located in Langley, BC and Pitt Meadows, BC. For further information contact; Jack Benne, President Bevo Agro Inc. Phone: (604) 888-0420 Fax: (604) 888-8048 Email: [email protected] Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.