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

Bio-Extraction Inc.

July 16, 2007 07:00 ET

BioExx Announces Publication of Comprehensive Bio-extraction Industry and Technology White Paper

TORONTO, ONTARIO--(Marketwire - July 16, 2007) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it has commissioned and is in receipt of a comprehensive White Paper that analyzes both the BioExx technology and the potential markets for that technology. Given that bio-extraction is a relatively unknown industry, the intention of the White Paper is to provide a comprehensive overview of this industry, in terms of technology and market opportunities, most particularly as these relate to BioExx, for the benefit of shareholders, investors, and analysts. BioExx believes that this first publicly available in-depth study will provide a framework for greater appreciation of the fundamental value of its technology and its business. The White Paper has been posted for public review on the BioExx website at www.bioexx.com.



Summary of Key White Paper Findings:
------------------------------------

- The global value of oil and other bio-active compounds extracted from
biomass (plant, marine, and animal sources) for use as nutraceuticals,
pharmaceuticals, foods, and industrial inputs exceeds $300 billion annually.

- The cost associated with these bio-extractions, and therefore the value
from a toll-processing perspective, immediately following the extraction,
is estimated to be in excess of $75 billion annually.

- The patented BioExx low-temperature extraction technology offers two key
improvements, compared to conventional technologies:

- Lower operating temperatures lead to reduced energy consumption
(which translates into reduced operating costs) and reduced
carbon emissions

- Lower operating temperatures facilitate the optimum preservation
of valuable proteins and other important compounds contained in
the biomass

- High solubility proteins, which have not been denatured by
conventional extraction processes, provide an opportunity for material
incremental revenues through separation and sale into high value
aquaculture and human food and supplement markets - potentially
doubling the gross margin available to producers in the massive global
oilseed industries (including food oils, bio-diesel, and industrial
products)

- New planned projects not yet constructed in the fast-growing biodiesel
industry alone are expected to generate annual revenues in excess of
$20 billion per year.

- Many existing and proposed biodiesel projects would not be
economically viable without substantial government subsidy. The BioExx
'protein retention technology' provides a unique opportunity to
generate significant incremental revenue from existing feedstocks,
thus facilitating improved and sustainable profitability in biodiesel
production.

- BioExx technology can assist in the mitigation of the current global
"food versus fuel" dilemma, by preserving oilseed food value in the
form of protein while at the same time recovering the bio-oils for
fuel.

- The White Paper concludes with the following statement:

"BioExx has developed a unique technology that addresses many of
the significant economic and social issues associated with global
markets for edible oils, animal/aquaculture feeds, proteins, and
bio-diesel. In lowering the cost of production, substantially
improving the environmental emissions impact, and providing a
significant secondary revenue stream by capturing optimal value
from high quality residual proteins, the BioExx technology has
the potential to emerge as the technology of choice for producers
in its selected markets."


BioExx is currently engaged in a project to prove that the proteins remaining in oilseed biomass after oil extraction can be separated and concentrated on a commercial scale. Once this work is completed, BioExx intends to commence construction of its first facility in Canada, and has already begun planning efforts towards construction of a facility in the United States. In the interim, BioExx will continue its market development program through the engagement of key partners in selected industry areas.

The White Paper also addresses the unique ability of BioExx to preserve and extract other valuable and sensitive plant compounds for the nutraceutical and pharmaceutical industries. This includes various phytochemicals (carotenoids, flavonoids, polyphenols, isoflavones, etc.) for nutraceutical products such as betulin, lutein, astaxanthin, lycopene, and beta carotene - as well as pharmaceutical opportunities in artemisinin and paclitaxel, among others. Accordingly, BioExx continues efforts to move forward on existing opportunities in these markets, and to engage additional partners to pursue new opportunities. BioExx is confident that an operating extraction facility or facilities as noted above could attract a profitable range of such products, on a stand-alone basis or as a capacity infill measure.

The White Paper provides a valuable strategic and operational planning tool for BioExx, through an independent assessment and confirmation of major market opportunities where competitive advantage is greatest, and where creation of long-term sustainable shareholder value can be maximized. In this context, despite strong technical success with its trials in the industrial metals cleaning market, BioExx has determined that this market is non-core and of limited size, relative to its other much more significant markets. Accordingly, BioExx has decided, on an interim basis, to defer any allocation of its limited capital, technology, and human resources to this niche market.

The White Paper was prepared by Ronald Skinner, B.Sc., MBA, who has been retained by BioExx on an on-going basis as a consultant to the company. Mr. Skinner has more than 25 years of practical experience in analytical chemistry and bio-extraction technology related to food technology, nutraceuticals, and extractions.

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 forward-looking statements and from the Company's expectations and projections.

Contact Information

  • Bio-Extraction Inc.
    Chris Schnarr
    Chief Financial Officer
    (416) 588-4442, x.111
    Email: cschnarr@bioexx.com