Outlook Resources Inc.
TSX VENTURE : OLR

Outlook Resources Inc.

January 14, 2008 14:01 ET

Outlook Updates 2007 Achievements and Outlines 2008 Plan

TORONTO, ONTARIO--(Marketwire - Jan. 14, 2008) - For the benefit of its shareholders and other interested parties, Outlook Resources Inc. ("Outlook" or the "Company") (TSX VENTURE:OLR) is pleased to issue an update of its achievements during 2007 and its plan for 2008. This update is not intended to be comprehensive, but rather to simply touch upon selected items which management believes are most reflective of the Company's progress in 2007 and to briefly discuss its path going forward, so that all stakeholders might have a better understanding of the company's activities to date and of its plans for the future.

2007 Year in Review:

Arctic Char Grow-Out Farm Construction Completed:

On January 17, 2007 Outlook's subsidiary, Agassiz Aqua Farms announced the signing of an agreement with the Ridgeland Hutterite Colony to develop its first grow-out facility. The Ridgeland Colony completed construction of the facility in July of 2007 with a holding capacity of 38,000 kilograms of Agassiz's antibiotic free Arctic Char. At full capacity, the facility is expected to produce more than 50,000 kilograms of Arctic Char annually. Outlook believes this facility is the first of a series of similarly sized projects that will be developed in the province of Manitoba as knowledge of the Company's first grow-out facility becomes known locally.

Significant Debt Settlements Completed:

In February 2007, Outlook announced its plan to retire a significant amount of debt from its Balance sheet through the issuance of treasury shares. These transactions were approved by shareholders at a special meeting held in March and were completed in April. The net result after the completion of the transactions was a reduction of liabilities owed by the Company totalling $1,066,818 dollars in exchange for $50,000 in cash and the balance in shares priced at $0.05. These transactions served to significantly reduce the outstanding liabilities of the Company and its subsidiary Agassiz Aqua Farms.

Research & Development Undertaken:

In April 2007, Outlook entered into a research investment agreement with Atlantic Bio Venture Centre at Nova Scotia Agricultural College ("NSAC") to develop a unique technology platform for bio-fuel co-products and plant-sourced protein aquaculture diets. The innovative research initiative will utilize a combination of grain and oilseed sourced proteins in combination with proprietary marine proteins and marine palatant (flavouring) materials.

The agreement between the Company and NSAC will be in effect until 2010 and involves an overall research commitment of $1,150,000 (one million, one hundred and fifty thousand dollars) between the Atlantic Innovation Fund providing 70% of the required capital and the Company providing 30% of the required capital.

With feed comprising an estimated 40% of aquaculture production costs, the quest for high quality and reasonably priced proteins has become a significant focus of this global industry, which currently consumes an estimated 7-8 million tonnes of protein annually.

The need for new high protein sources as an alternative to the traditional fish meals is being driven by the decline of wild fish stocks and the cycling of toxic heavy metals through the feed chain. With a protein efficiency ratio nearly on par with beef and milk proteins, grain and oilseed proteins can be an ideal fit for this market need.

Renewable Energy Developments:

Outlook continued its on-going renewable energy development activities with a view to expediting its entry into the Renewable Energy Market. In May of 2007 Outlook entered agreements with technology providers and engineering consulting firms that could provide the Company with the technological expertise to develop Bio-Ethanol and Bio-Gas production facilities.

The Company entered into representation agreements with KBK-Chem Ltd., and Lars Environmental Ltd., of India and hired a Business Development Manager to represent their respective companies and technologies in Canada. A general downturn in the Bio-fuel sector has delayed the originally anticipated developments due in large part to rising grain and construction costs and also as a result of the overall slowing of the North American economy.

Significant Financing Achieved:

In July 2007, Outlook completed a brokered and a non-brokered financing, totalling $1,200,000 Canadian dollars. These transactions provided much needed working capital which then allowed the Company and its subsidiary Agassiz Aqua Farms, to move forward with a number of initiatives that had previously been held back by the lack of available capital. In addition the financing allowed the Company to retire a significant amount of its outstanding payables.

Company Owned Fish Farm Expansion Underway:

On completion of the financing in July the Company paid deposits to order a number of specialty items related to water purification for its existing aquaculture facility at Gunton, Manitoba. The equipment ordered will augment the existing filtration equipment and will allow the Company to increase stocking density at its aquaculture facility. At the same time the new equipment will reduce the amount of well water the farm currently uses. While the equipment has been on order the Company has made numerous repairs to the facility's existing infrastructure. The Company's initial plan to cover the existing outdoor raceways was delayed due to the onset of winter and is scheduled to be started as soon as spring thaw arrives.

Bio-Economy Park Developments:

In August 2007, Outlook's management team renewed its efforts to advance the Company's Bio-Economy Park development strategy. Having had little success in working with agricultural producer groups in Manitoba for a variety of reasons the Company reviewed its original approach and undertook a process of technology review and market analysis.

With crude oil prices approaching US$100 a barrel, the management team began revisiting the concept of Waste-To-Energy production from Biomass and Refuse-Derived-Fuel processes with which certain members of the management team had prior experience.

In September 2007, Company management opened discussions with integrated waste management companies, industrial processers, agricultural processors and agricultural producers to secure the feedstock (agricultural and industrial processing residues) required to supply a Refuse-Derived-Fuel ("RDF") or Biomass-fuel plant, on commercially competitive terms, for a minimum of ten years with renewal options for a second ten year term. As of the date of this press release no agreements have yet been finalized in this regard.

Organizational Development:

On November 29 2007, Outlook retained Meyers Norris Penny LLP ("MNP"), a Western Canadian chartered accountancy and business advisory firm, as its accountants. MNP has identified a bookkeeper to prepare the accounting records for Outlook under the supervision of MNP and the financial statements of the Company will be prepared by management, with assistance from MNP commencing with the year end financial statements for November 30, 2007.

Looking Ahead to 2008:

With the momentum established in 2007, the management team feels the Company is well positioned to address the Company's key 2008 business plan milestones.

Corporate Finance:

Foremost among these 2008 milestones is the Company's requirement to complete a private placement financing of $2 to $3 million to provide the funds required for the completion of the existing aquaculture facility expansion and for the envisioned construction and start-up of the proposed RDF/Biomass-fuel plant. Progress has been steady, and efforts are targeted towards completing this financing before the end of March, 2008.

RDF/Biomass Fuel Plant Construction:

Facilitated by the level of detail required to initiate the planned financing, Outlook continues to move forward with detailed engineering design and construction plans, to allow the Company to meet its target of commencing construction of the plant in the spring and start-up of operations in late Q3 2008.

The proposed state-of-the-art densification facility should begin producing revenue immediately upon start-up, with growth through ramp-up and into full scale operation in early 2009.

Personnel:

As Outlook advances on the two primary fronts of its 2008 plan, it will also continue to augment the depth and breadth of its team by adding key individuals in key areas, most particularly those related to construction and operation of the planned Biomass-fuel facility.

Commercial Partnerships:

During the RDF/Biomass-fuel plant's construction period, Outlook intends to continue working on additional commercial relationships with key potential customers to secure forward sales of the Refuse-Derived-Fuel to be produced at the proposed plant. In addition, Outlook will continue to actively advance discussions with companies to supply agricultural waste and industrial waste as feedstock for the RDF plant, in order to ensure supply and demand logistics are balanced.

Research & Development:

Outlook has already contracted with third parties to continue on-going research and development activities throughout 2008, 2009 and 2010. Key initiatives will focus on the completion of all-vegetable protein and marine palatant concentrate development for aquaculture feed inclusion.

The research team at NSAC is targeting to complete initial development of these feed-grade products late in 2008, and to enter the regulatory approval process in 2009. It is expected that these higher value, all vegetable protein products, can represent a significant source of economic upside in Outlook's overall business plan.

Organizational Development Planned for 2008:

In addition to filling the Company's current vacancy for a Chief Financial Officer, Outlook intends to form a Science Advisory Board, comprised of experienced, knowledgeable, and respected scientists and engineers from various disciplines. The team members currently being interviewed bring remarkable market and technical knowledge from their respective fields including engineering and design for low temperature protein extraction technology, diagnostic chemistry, large scale process and product development, food science, health and nutrition, and aquaculture nutrition and feed development.

The Science Advisory Board members currently being interviewed will undoubtedly prove invaluable in terms of both technology and commercial plant development milestones as the Company moves forward.

Conclusion:

"During this past year we have successfully established solid foundations across the areas of technology, market development, infrastructure, and personnel. From this foundation, 2008 could be Outlook's break-out year. We intend to move prudently, but aggressively, to take full advantage of the tremendous opportunities before us", said Mr. John Bottomley, Chief Executive Officer of Outlook Resources. "Our timing for executing on a value-added proposition for the agri-business industry is excellent and we are well poised to move forward with our plans to construct not only multiple aquaculture facilities, but also the envisioned RDF/Biomass-fuel plant. Once the first RDF plant is completed we will be working towards the development of additional facilities, potentially on a global basis, with the goal of driving to become a world leader in the supply of land based aquaculture raised products in addition to RDF/Biomass-fuel production. We believe this is also the path to creation of tremendous value for our shareholders."

About Outlook Resources Inc.

The global demand for affordable high quality food products produced in an environmentally sustainable manner is growing at an unprecedented rate, driven by a combination of both population growth and economic growth.

At the same time, food supply constraints are increasing, due in part to alternate uses of crops for bio-fuels and other industrial purposes, while many crops have already reached their maximum yields. The result is a frightening imbalance between over-demand and under-supply.

Outlook is currently involved in an R&D program to develop technology which will allow for the extraction of higher value proteins and ultimately nutraceutical grade active ingredients from these alternate uses for food crops. In addition Outlook plans to produce a renewable fuel product from biomass more commonly known as Refuse-Derived-Fuel or Biomass-fuel.

This two pronged approach results in Outlook being particularly well positioned to process a variety of industrial and agricultural processing wastes or by-products in a manner that allows for the production of higher value products to be used as a source of renewable, carbon neutral fuel in addition to the production of higher value additives to the food chain, in the form of higher value, vegetable based proteins.

Outlook's management team has worked diligently to develop these solutions to some of the prominent global agricultural problems by introducing value-added processes.

Outlook intends to grow the company through the construction and operation of both RDF/Biomass-fuel densification plants and vegetable protein extraction facilities in addition to the development of environmentally conscientious, land based aquaculture facilities built and operated in an environmentally sustainable manner.

To find out more about Outlook Resources (TSX VENTURE:OLR), please visit our website at www.outlookresources.com.

The TSX Venture Exchange has not reviewed this press release and has neither approved nor disapproved the information contained in this press release. 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 Outlook's products, the availability of funding, and the anticipated costs of Outlook's plant construction and operation. These forward-looking statements are made as of the date hereof and Outlook 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 expectations and projections.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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