AGI PROVIDES UPDATE ON CRA REVIEW OF CONVERSION TRANSACTION

FOR IMMEDIATE RELEASE

Winnipeg, MB, November 25, 2013 – Ag Growth International Inc. (TSX: AFN) ("AGI" or the "Company") is providing an update on the previously disclosed review by the Canada Revenue Agency ("CRA") of AGI's corporate conversion transaction completed in June 2009.

As part of the ongoing CRA review, AGI has now received a proposal letter from the CRA which advises of the CRA's intention to challenge the tax consequences of the conversion transaction. The CRA has indicated in their proposal letter that they intend to challenge the transaction on the basis of the acquisition of control and general anti-avoidance rules of the Income Tax Act (Canada).

AGI remains confident in the appropriateness of its tax filing position and the expected tax consequences of the corporate conversion and intends to vigorously defend such position. AGI strongly believes that the acquisition of control or the general anti-avoidance rules do not apply to AGI’s corporate conversion and intends to file its future tax returns on a basis consistent with its view of the outcome of the corporate conversion.

AGI has 30 days to respond to the letter and it is the Company’s expectation that, failing a resolution of the matter, the CRA may then proceed with the Notice of Reassessment process. AGI will have 90 days from any Notice of Reassessment to prepare and file a Notice of Objection which would be reviewed by the CRA's appeals division. At that time AGI would be required to pay 50% of the resultant tax liability and interest. For the period from the June 2009 conversion through September 30, 2013, AGI has utilized approximately $27.0 million of the tax attributes related to the conversion and if reassessed on all tax periods through September 30, 2013 the 50% deposit would total approximately $13.5 million, excluding interest. If the CRA is not in agreement with AGI's Notice of Objection, AGI has the option to file its case with the Tax Court of Canada. AGI anticipates that legal proceedings through the various tax courts would take between 2 to 4 years. If AGI is ultimately successful in defending its position, then any taxes, interest and penalties paid to the CRA will be refunded plus interest and if the CRA is successful then any remaining taxes payable plus interest and any penalties will have to be remitted.