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

Bio-Extraction Inc.

January 29, 2008 09:29 ET

BioExx Closes $11 Million Private Placement after Exercise of Agents' Option

TORONTO, ONTARIO—-(Marketwire – Jan. 29, 2008) -

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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 Blackmont Capital Inc. and Research Capital Corporation (collectively, the "Agents").

The Offering consisted of $10 million of units priced at $0.25 per unit, each unit consisting of one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to purchase an additional common share at a price of $0.40 for a period of 24 months following closing. The Agents were previously granted an option to increase the size of the Offering by up to 20% at any time up to 48 hours before the Closing (the "Agents' Option").

Gross proceeds of the offering, after taking into account the exercise of the Agents' Option, was $11,069,750. The net proceeds from the Offering will be used to fund the construction and start-up of the previously announced BioExx canola extraction facility in Saskatoon, for working capital, and for general corporate purposes.

"First and foremost, we want to thank those investors who have placed their confidence in us by participating in this private placement", said Chris Carl, BioExx Chief Executive Officer. "We believe we have created an exceptional team at BioExx, who together have successfully developed unique and tremendously valuable technology, which we believe will enable us to generate significant returns in the agriculture and renewables sectors for many years to come. With the completion of this financing during difficult markets, we look forward to moving ahead on construction of our Saskatoon facility, and thereafter bridging quickly into other oilseed processing markets on a global scale."

Subject to regulatory approval, BioExx also intends to issue today an aggregate of 46,128 common shares at $0.25 per share to Chris Carl, in settlement of an $11,532 pre-existing obligation to Mr. Carl, and 45,984 common shares at $0.25 per share to Ilja Troitschanski, in settlement of an $11,496 pre-existing obligation to Mr. Troitschanski, in both cases relating to deferred payment of management services incurred prior to June 30, 2007. The obligation to issue such shares is disclosed in BioExx's interim financial statements for the periods ending June 30, 2007 and September 30, 2007.

About Bio-Extraction Inc.

The global demand for ever higher food value from agriculture is growing at an unprecedented pace, driven by population growth and economic growth. At the same time, food supply constraints are increasing, due to urban development of arable land, alternate uses of crops for bio-fuel and other industrial purposes, and many crops having already maximized yields. The result is an alarming imbalance between over-demand and under-supply.

BioExx owns patented technology which allows for much lower temperatures to be used for the extraction of active ingredients and oils from biomass. This makes BioExx particularly well suited to process oilseed crops in a manner that allows for the production of much higher value additives to the food chain, in the form of higher yields of high value proteins which tend to be temperature sensitive. While forming just a small, but very valuable part of the solution to prominent global agricultural problems, BioExx has a mandate to rapidly grow the company through the construction and operation of extraction facilities around the world - and because of its much lower energy requirements, to do so in a very 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 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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