SOURCE: Lexaria Corporation

July 16, 2007 09:00 ET

2,405% Increase in Value of Proved Reserves Supports New Drill Program

VANCOUVER, BC--(Marketwire - July 16, 2007) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") announces today that it has increased the value of its proved oil and gas reserves in Mississippi 2,405% in the six months from October 31, 2006, to May 1, 2007. Virtually all of the increases within this time are attributable to results from various drill programs conducted in 2006 and 2007.

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NET RESERVES   Hydrocarbon   Natural Gas   Future Net    Present Worth
as  of         Liquids (Bbl)   (Mcf)       Income After  of Future Net
Oct 31, 2006                               Expenses and  Income
                                           Royalty Tax,  Discounted at
                                           $             10%/yr.

----------------------------------------------------------------------
Proved Developed  0          62,960        206,510       165,860
Producing
----------------------------------------------------------------------
Proved Developed  0          0             0             0
Non-Producing
----------------------------------------------------------------------
Proved            0          0             0             0
Undeveloped
----------------------------------------------------------------------
----------------------------------------------------------------------
TOTAL PROVED      0          62,960        $206,510      $165,860
----------------------------------------------------------------------
(All figures based on third-party Licensed Professional Engineer proved
reserve report as of 31/10/06.)


----------------------------------------------------------------------
NET            Hydrocarbon    Natural Gas  Future Net    Present Worth
RESERVES as    Liquids (Bbl)      (Mcf)    Income After  of Future Net
of May 1, 2007                             Expenses and  Income
                                           Royalty Tax,  Discounted at
                                           $             10%/yr.
-----------------------------------------------------------------------
Proved Developed   0          67,410       327,820       289,160
Producing
-----------------------------------------------------------------------
Proved Developed  660         41,050       219,230       182,700
Non-Producing
-----------------------------------------------------------------------
Proved            112,430     23,390       6,046,270     3,683,330
Undeveloped
-----------------------------------------------------------------------
-----------------------------------------------------------------------
TOTAL PROVED      113,090     131,850     $6,593,320     $4,155,190
-----------------------------------------------------------------------
(All figures based on third-party Licensed Professional Engineer proved
reserve report as of 01/05/07.)

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The Company is pleased to have achieved increases in all proven categories, and believes that its continued work in Mississippi to connect pipeline to previously drilled wells and to continue drilling new wells, will lead to additional increases. The Company specifically notes that it is assigning zero value to any probable reserves, and is not including any probable reserves in the above figures.

President Chris Bunka said, "Lexaria is evolving rapidly as it pursues a sensible growth strategy. We continue to build value through the drill bit and will continue to examine every intelligent growth opportunity we can as we move forward."

The Company is confident that additional value will be created for its shareholders through continued drilling, and to that end is planning to begin its Summer 2007 drill program imminently. It is expected that the first well in the Summer program will spud within two weeks.

Lexaria notes that it has recently announced the acquisition of additional interests, to now have a 50% participatory interest in the remaining 43-wells of the AMI. The Company further notes that it also recently reported the acquisition of an additional interest in the 2006 program of 12 wells, taking its interest from 20% to 30%. Since both of these acquisitions occurred after May 1, 2007, neither of them is reflected in the proved reserves shown in the tables above. The Company also has not included in the tables above any proved reserves from its producing Owl Creek property in Oklahoma. The proved reserves reported herein reflect Lexaria's Net interests. The Future Net Income category is after estimated operating expenses and royalty taxes have been deducted.

About Lexaria Corp.

Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 30% and 50% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company may not have sufficient funding to thoroughly explore, drill or develop its properties. Access to capital, or lack thereof, is a major risk. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

Press Release #200715

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