Bio-Extraction Inc.
TSX VENTURE : BXI

Bio-Extraction Inc.

May 14, 2009 09:21 ET

BioExx Announces Closing of Private Placement

Saskatoon Plant Status Update

TORONTO, ONTARIO--(Marketwire - May 14, 2009) -

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Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it has closed its previously announced private placement (the "Offering"), sold by a syndicate of agents led by Canaccord Capital Corporation and including and Fraser Mackenzie Limited, Loewen Ondaatje McCutcheon Limited, and Wellington West Capital Markets Inc.

Including the exercise of the increased Agent's Option as previously announced, the Offering consisted of 10,200,000 common shares at $0.52 per share for gross proceeds of $5,304,000. The common shares sold pursuant to the Offering will be subject to a four month statutory hold period.

Plant Update

The Saskatoon plant is now generating regular sales through the shipping of truckload quantities of 100% of its production. Quality of the products has steadily increased since start-up, with meal quality now meeting or exceeding market specs, and oil expected to soon meet or exceed premium specs. The plant is now fully staffed with 19 employees and has operated steadily on a 7/24 basis since April 20th. Management expects that certain Phase 2 components which are scheduled to be installed in the coming weeks should further increase volumes and unit prices, thus moving the Company closer to operating breakeven at the plant. Crush Margins remain healthy with futures markets pointing to continued strength. In the interim, engineering and procurement work continues at a strong pace towards Phase 2 Extraction start-up in mid-Q3, followed closely by Phase 3 Proteins.

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 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, 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 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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