Bio-Extraction Inc.
TSX VENTURE : BXI

Bio-Extraction Inc.

September 23, 2009 17:30 ET

BioExx Announces $2.95 Million Agri-Opportunities Funding

Also Provides Operations Update

TORONTO, ONTARIO--(Marketwire - Sept. 23, 2009) - Bio-Extraction Inc. (TSX VENTURE:BXI), known as BioExx or the Company, is pleased to announce that it has been conditionally approved for a repayable contribution of $2,958,000 by Agriculture and Agri-food Canada, under its Agri-Opportunities program. Subject to completion of a definitive agreement, the proceeds from the contribution will be used for capital equipment, installation, and commissioning for the BioExx protein isolate production system at its Saskatoon canola processing plant. The contribution is interest-free, unsecured, and is repayable in five equal annual instalments beginning in April, 2013.

"We are very pleased to have been approved for funding under the Agri-Opportunities program", said Chris Schnarr, BioExx Chief Financial Officer. "It is this type of support and these types of programs that help leading-edge companies commercialize processes and products, such as we are doing at BioExx. This fostering of innovation is important to the creation of value and helps drive investment, economic growth, and job creation. We are thrilled to have been selected for participation in this valuable program."

The Honourable Gerry Ritz, Canadian Minister of Agriculture and Agri-Food, hosted a press conference at the BioExx processing facility in Saskatoon on Wednesday, September 23, 2009 at 5:00 p.m. ET, to officially announce the funding arrangement with BioExx and to discuss the Agri-Opportunities program.

Based on its patented low-temperature oil extraction and patent-pending protein separation processes, BioExx has developed a family of unique canola protein isolate and hydrolyzed protein products to be produced at its Saskatoon plant. These products are well-suited to a multitude of food and beverage applications, such as baked goods, meat products, energy bars, fruit juices, and sports drinks. Being able to access a program such as Agri-Opportunities is of great assistance to BioExx in developing a balanced capital structure and reducing its overall cost of capital to support this technically innovative and important protein isolate processing facility.

About Agri-Opportunities

The $134 million, Agri-Opportunities Program, launched in January 2007, is a five-year program that aims to accelerate the commercialization of new agricultural products, processes or services that are currently not produced or commercially available in Canada, and are ready to be introduced to the marketplace. Agri-Opportunities is delivered nationally by Agriculture and Agri-Food Canada. Funding is provided to projects that focus on new agri-food, agriculture or bioproducts, that can be expected to increase market opportunities for the Canadian agricultural industry across the value chain and generate demand for primary agricultural products.

BioExx Operations Update

Excellent progress continues to be made on completion of the extraction and protein isolate areas of the Saskatoon plant. Timing for GRAS self-affirmation continues to be projected well ahead of protein production, and equipment installation is set to commence by the end of October and carry on through to start-up. Unfortunately, it does appear that delivery of some equipment will be slightly later in the year than desired. While not significant, system start-up is now projected to commence in mid to late February rather than around year end. Every effort is being made to shorten the timetable but equipment delivery times do control critical path at this point in time.

Additionally, testing and market penetration activities have continued with BioExx's protein distribution partner, Helm AG. "The protein market faces a serious lack of high purity plant proteins and that supply gap is continually widening. The big advantage we have with the BioExx product is that it is strong in all required characteristics for food products, including superior nutritional value, good taste, functional properties, and solubility", said Mr. Sergej Lazovic, Executive Manager of Helm AG. "We have presented the company and the samples to customers that we have strong relationships with and can confirm that BioExx has been able to develop protein products that meet their needs very well. This includes representatives in the meat and spice, bakery, functional foods, and sports food markets. Consequently, there should be strong demand for BioExx protein in the market and there are already a number of very interested customers waiting for regular production to commence."

With respect to current operations, BioExx is pleased to report that it is now producing its targeted quality of super degummed (SDG) oil at higher than target yields (percentage of oil recovered from pressing) with ever increasing quantities being processed. This will allow shipping and sales of premium oil commencing in October, in addition to the premium meal already being sold. Current operating performance at the plant is very strong, with September average daily quantity of seed processed up 60% and average daily oil production up 67% versus the second quarter. BioExx is very pleased with this performance and looks forward to continued strength in operations from here forward as it moves towards protein production.

About Bio-Extraction Inc.

Headquartered in Toronto, Canada, BioExx is a leading technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for the global food, beverage, and nutrition markets. BioExx's patented technology allows for the use of significantly lower temperatures than conventional methods in extracting the active ingredients and oils from oilseeds, resulting in higher yields and higher-quality meal, oils and proteins. BioExx's low energy requirements, environmentally sound process, and high-yield production have the potential to make a valuable contribution in alleviating food scarcity. BioExx operates a commercial scale extraction facility in Saskatoon, Saskatchewan, and has a mission to construct additional and larger processing facilities on a global basis. To find out more about Bio-Extraction Inc. (TSX VENTURE:BXI), please visit www.bioexx.com

"The statements made in this press release include forward-looking statements that involve a number of risks and uncertainties. These statements relate to future events or future performance and reflect management's current expectations and assumptions. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements, such as the economy, generally, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's plant construction and operation. These forward-looking statements are made as of the date hereof and BioExx does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from BioExx's expectations and projections."

"Neither 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."

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