Bio-Extraction Inc.
TSX VENTURE : BXI

Bio-Extraction Inc.

June 11, 2007 07:00 ET

Bio-Extraction Inc. Executes Joint Development Agreement with BioNex Energy Corp.

TORONTO, ONTARIO--(Marketwire - June 11, 2007) -

Attention Business Editors:

Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") (http://www.bioexx.com) is pleased to announce it has signed a Joint Development Agreement with BioNex Energy Corp ("BEC"). Under the terms of the Agreement, BioExx and BEC will work together on a development study to test and prove the commercial efficacy of the BioExx extraction technology for use in tandem with a planned BEC bio-diesel production facility to be located in western Canada.

BEC is a developmental stage company which intends to use cold crushing technology in its plant as a first-stage process for removal of oil from canola and other high oil-content crops, and BioExx would provide the second-stage process. The first stage of oil removal will utilize the BEC process which removes approximately 80% of the oil from the biomass while maintaining a consistently low temperature. In the second and final stage of oil removal, the patented BioExx process will be employed to remove up to 100% of the remaining oil while at the same time substantially maintaining the protein value originally contained in the biomass. On a combined basis, this process could improve yields of oil volume versus existing oil-removal technologies while at the same time dramatically increasing the residual value of the biomass. In some cases, BioExx may also be able to isolate the proteins for use as protein additives in animal or fish feed and eventually for human consumption.

Testing of the process is expected to occur during the next 4 to 6 months between the BEC test facility in Alberta and at the BioExx Intermediate Sized Plant facility in Charlottetown, PEI. The intention of the test program is to prove that the two-stage oil removal process is successful in (a) removing a much higher percentage of the available oil, and (b) removing the oil using low temperature extraction such that the incumbent proteins and other nutritive content of the biomass is retained.

Typically, oil is separated from biomass or crops using an extraction method that involves heat, pressure and organic solvents. This process tends to enjoy yields of 95% or more of the oil contained in the oilseeds and is quite efficient at very large scale. Once the oil is removed, the remaining material ("spent biomass") is heated to high temperatures to recover the organic solvent. This high temperature process significantly degrades the proteins and reduces the nutritive value of the meal. The meal is then sold at moderate prices for use as animal feed. Unfortunately, when crop prices rise at a faster rate than the underlying fuel price, profit margins from these conventional facilities can be significantly eroded.

The BioExx technology represents a substantial improvement over conventional technology because it has the capability to remove up to 100% of the oil but at a significantly reduced operating temperature while retaining all of the nutritive content of the spent biomass. The spent biomass resulting from this process can have substantially higher value because they can be sold as higher quality animal feeds or other higher value protein applications and products. The BioExx technology may therefore have the potential to fundamentally improve the economics of bio-diesel manufacturing operations, while at the same time mitigating the increasingly prominent "food versus fuel" conflict over global crop usage.

"We are very pleased to be working with BEC as an early-stage entry partner for our bio-diesel sector applications. In a relatively young industry, they have a strong team of veterans, and we look forward to their guidance and experience for the testing of the BioExx technology for use in Bio-Diesel applications," said BioExx CEO, Chris Carl. "We are optimistic that this development project will provide all of the data needed to prove, at a small commercial scale, that our patented technology is commercially superior to any other known oil extraction process, and that in turn, BioExx has the potential to meaningfully alter the economics of the production of biodiesel on a global basis."

BEC is a privately owned developer and operator of integrated oil seed crushing and biodiesel production facilities. The first project in Alberta will have an annual production capacity of 20 million litres of biodiesel, 30,000 tonnes of canola meal and 2,000 tonnes of glycerine. BEC believes the appropriate market entry strategy is to build a modular plant that can expand quickly to meet market demands and then to develop a number of distributed plants across Alberta that work closely with local grower groups. The biodiesel produced will then be shipped to terminal facilities for blending into petrodiesel. BEC was formed by ex-employees of the Advanced Biodiesel Group NA Ltd., is based in Calgary and has a senior management team experienced in biodiesel production, project development, commodity trading and business management.

"Our team has great depth of experience and we understand the commercial challenges that must be met to build a sustainable biodiesel business. Technology selection is a critical part of this challenge and, having searched the globe for the best technology available for efficient and effective oil extraction for bio-diesel manufacturing, we have found nothing that compares to what appears possible with the BioExx technology," said John Simpson, President of BEC. "The prospect of extracting the maximum available oil and retaining all of the original nutritive value, in an environmentally responsible manner, is absolutely unique. To be successful in the production of bio-diesel, a product subject to increasing worldwide demand, we must find technologies that can substantially lower the overall production costs compared to current methods. At BEC, our goal is to develop projects that use best available technologies and to combine this with superior resource management to allow for lowest cost, highest value production of bio-diesel and related products. As our tests prove conclusive, we look forward to working with BioExx in an increasing array of exciting development projects."

About Bio-Extraction Inc.

BioExx is involved in the development and commercialization of extraction technology, which it intends to use to extract various active ingredients from organic and inorganic materials, as a service to industrial customers. Presently, the patented BioExx technology has two major applications: (1) the extraction of organic materials from biomass such as plant, fish, and animal materials, and (2) the cleansing of industrial materials. Global in scope, the BioExx target markets include extractions in pharmaceutical, nutraceutical, food oils and fixed oils (including bio-fuels) and industrial cleansing (eg. specialty steels and plastics, glass). Versus traditional technologies, the BioExx technology can provide customers with the benefit of lower extraction costs, higher quality extracted materials, and incremental revenue opportunities as its extraction process does not destroy inherent proteins and other valuable compounds - with all this being completed in an environmentally responsible manner.

To find out more about Bio-Extraction Inc. (TSX VENTURE:BXI), please visit our website at http://www.bioexx.com

The statements made in this Press Release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's 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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