Bio-Extraction Inc.
TSX VENTURE : LCC.P
TSX VENTURE : BXI

Bio-Extraction Inc.

October 01, 2007 07:00 ET

BioExx Announces 40,000,000 Kg Extraction Facility

TORONTO, ONTARIO--(Marketwire – Oct 1, 2007) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it intends to construct an oil extraction facility that will have a capacity to process 40 million kg of canola oilseeds per year. At full capacity, the facility should be able to produce more than 17.5 million litres of crude degummed canola oil (for further refinement into edible oil or biodiesel) and 13 million kg of animal feed annually. BioExx believes this facility will be unique because, in addition to the oil and animal feed, it will also be capable of producing up to 11 million kg per year of valuable protein concentrate, at a standard purity level of 65%.

The protein concentrate will be produced from "soluble proteins" derived from the canola meal after the BioExx oil extraction process is complete. In conventional oil extraction processes, deriving soluble proteins is either impossible or subject to very low yields because the oilseeds are exposed to damaging heat during the extraction process, thus denaturing the proteins. In other processes, relatively high oil content in the residual meal makes protein separation difficult, subject to low yields and poor economics. Through the BioExx extraction technology, virtually all of the oil is removed from the oilseeds, at or near ambient temperatures which does not denature the proteins. As such, protein concentrate is expected to be less expensive to produce, available in higher yields, and more valuable as a result of the improved solubility.

"We are very excited to be embarking on the first of what BioExx anticipates will be several oilseed processing facilities constructed over the next five years in North America and throughout the world," said BioExx founder and CEO Chris Carl. "We had originally planned a 25,000 metric ton facility for our first, but have decided we can confidently scale this up to 40,000 metric tons to offer improved and expedited returns. We anticipate that our business model, uniquely enabled by our protein-retentive extraction technology, will allow us to build and operate profitable plants of a moderate scale, significantly mitigating the business risks inherent in the larger, more conventional and lower margin facilities being announced in today's environment of high feedstock prices.

"From this base, we intend to grow the size of subsequent facilities but not to a point where we require all available feedstock within a significant radius as the very large scale facilities do," said Carl. "This is a unique technology that provides great value and benefit to the industry and the environment. It represents a real paradigm shift in the way oils and proteins are currently extracted from biomass."

The facility will be located in Saskatchewan and will be based on the novel Continuous Counter Flow design for which BioExx has recently filed a United States patent application. BioExx plans call for the facility to be operational in the latter half of 2008. Additional facility details will be announced in the coming weeks, and progress reports will be regularly provided thereafter.

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, for its own account and as a service to industrial customers. 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). BioExx currently holds three distinct patents for its low-cost, low temperature process with an additional patent now pending in the US. Compared to traditional technologies, the BioExx technology can provide customers with the benefit of lower extraction costs, higher quality extracted ingredients and oils, and material incremental revenue opportunities as its extractions can retain substantially all of the value of inherent proteins and other sensitive compounds - all 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.

CHRIS CARL GOES "BEYOND THE PRESS RELEASE"

Chris Carl will record a "Beyond The Press Release" on the Company's official Investor Relations Site at http://www.agoracom.com/IR/bioexx , in which the above developments will be discussed in detail. The recording is expected to be available on or after Monday October 1, 2007.

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.

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