Bio-Extraction Inc.

Bio-Extraction Inc.

November 25, 2008 07:02 ET

BioExx Announces Long-Term Sales Agreement for Its Specialty Proteins

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2008) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce it has signed a protein sales agreement with global chemical and nutritional conglomerate Helm AG, for the purchase and distribution of not less than 70% of the Specialty Protein products produced at the BioExx canola processing facility in Saskatoon, SK. The Agreement covers a ten year period, comprised of a five year base term with five automatic one year renewals.

The agreement is unique in that it covers the entire range of Specialty Protein products to be produced by BioExx, ranging from Protein Concentrates through Super-Concentrates and high purity Protein Isolates, beginning first with the BioExx Advantexx70™ product.

Although Helm may purchase all of the Specialty Proteins from Saskatoon, BioExx can retain up to 30% of the volume for the purposes of new market development. In return for its purchase commitment, Helm will be the sole European distributor of Specialty Proteins produced at the Saskatoon plant. Helm and BioExx have agreed that they would like to develop this relationship on a global basis as BioExx constructs additional plants, and as such, Helm has been granted a conditional right of first refusal for the negotiation of purchase terms for protein products from future BioExx plants.

"We are pleased to have concluded this sales agreement with such a respected customer as Helm AG and to be working with a distributor with global reach and influence in animal and human nutrition products" said BioExx CEO, Chris Carl. "We are also proud that BioExx has been able to demonstrate its high level of thoroughness and responsibility to meet the stringent criteria to become a Helm supplier. We believe that Helm is the premier partner for BioExx as we build our full range of protein products and we look forward to a long and lasting relationship with Helm on a global basis."

The Agreement comes after scientific analysis and testing by Helm. The Saskatoon plant expects to commence production of its Advantexx70™ products in the second quarter of 2009. Advantexx70™ is a 70% pure protein concentrate, initially targeted at specialty feed and aquaculture markets, although subject to regulatory approvals it may also be sold into human food-use markets. Pricing will be finalized between the parties in Q1 2009, as BioExx gets closer to production of proteins, and will reflect market conditions and pricing of competitive protein products. Initial indications are in line with BioExx expectations. The non-GMO status of the products to be produced in Saskatoon provides yet another compelling feature to drive demand and pricing in global markets.

"Our detailed analytical testing of the BioExx proteins returned superior results and showed unique characteristics, including high protein solubility, an excellent amino acid profile, and exceptionally low anti-nutrient levels", said Thomas Arnold, Executive Director Nutrition of Helm AG. "We are very pleased to be adding the BioExx proteins to our global product family, particularly in a market characterized by very strong demand and limited high quality sources of supply. The Saskatchewan production volume is relatively small, however, we view this as an opportunity to establish a relationship which can grow as BioExx grows and expands its production capacity."

About Helm AG

Headquartered in Hamburg, Germany, Helm AG is a 108 year old company with offices worldwide including Europe, Africa, Asia and North America, and 2007 sales in excess of $12 billion CDN. Helm has built its success upon working with quality producers as suppliers rather than concentrating on its own production facilities and is one of largest distributors of animal and human nutrition products worldwide. Helm's markets include chemicals, nutrition, pharmaceuticals, polymers, crop protection, and fertilizers. Helm has a large team of scientists to maintain very strict quality control and works exclusively with suppliers who can produce products that meet strict parameters of quality and consistency. For more about Helm AG, please see

About Bio-Extraction Inc.

Headquartered in Toronto, Canada, BioExx is a leading technology company focused on the extraction of oil and high-value proteins from oilseeds for the global food market. BioExx' 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' low energy requirements, environmentally sound process, and high-yield production have the potential to make a valuable contribution in alleviating food scarcity.

BioExx is currently completing construction its first commercial specialty extraction facility for processing canola to produce protein concentrates for the aquaculture and specialty animal feed markets, as well as canola oil and meal. The facility, located in Saskatoon, Saskatchewan, is expected to begin commercial operation in early 2009. To find out more about Bio-Extraction Inc. (TSX VENTURE:BXI), please visit

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, the demand for BioExx' products, the availability of funding, and the anticipated costs of BioExx' 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 the BioExx' expectations and projections.

The TSX Venture Exchange has not reviewed this press release and neither approved nor disapproved the information contained in this press release.

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