BioExx Specialty Proteins Ltd.
TSX : BXI

BioExx Specialty Proteins Ltd.

January 25, 2011 07:15 ET

BioExx Completes Internal HACCP Audit

Expands Executive Team

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2011) -

BioExx Specialty Proteins Ltd. (TSX:BXI) is pleased to announce that it has completed the internal audit of its Hazard Analysis and Critical Control Points ("HACCP") procedures at the Saskatoon plant. The audit was performed by Silliker, Inc. The purpose of the internal audit is not to determine a pass or fail but rather to prepare the facility for its first external audit which is presently scheduled for late February.

As expected, various observations were made resulting in suggestions for improvement, but a post-audit review has determined that all necessary recommended control procedure improvements should be completed in time for the external audit. The internal audit also noted that further production volume improvements would be required to satisfy the physical compliance requirements of the external audit and a plan has been established to allow the plant to achieve this volume prior to the external audit.

The Company continues to observe fluctuations in daily operating results, and while there has generally been a consistent pace of learning in the start-up of this pioneering facility, there have been several issues, primarily equipment-related and beyond the Company's control, that have prevented the company from reaching its desired levels of production thus far. Problem areas have included some on-going failures in critical components such as pumps, compressors, and seals, and have recently extended to power outages during production runs in the business park where the plant is situated. These issues are being resolved but have impeded progress to date. Most of the challenges have been encountered in the extraction area and the clean-in-place system, both of which limit protein production and meeting human food specifications. Despite these challenges, which will be overcome, the team has been generally pleased with the performance of the protein area and the balance of the plant.

To address these issues in an aggressive and complete manner, the extraction plant was shut down for one week to allow for a number of equipment adjustments and a thorough cleaning. During this period the crush plant and parts of the protein plant are continuing to operate, focusing on yield and equipment optimization. Full plant operations will resume in the next week, with an expectation that these on-going nuisance problems will have been largely addressed and the necessary volume gains can then be achieved.

The Company is pleased with the state of readiness of its required control systems, and remains confident in the efficacy of its technology. It is now looking forward to accelerated progress as it moves toward consistent, commercial food-grade protein production, and to successfully completing its external HACCP audit. As planned, the Company expects 7/24 operations and commercial food sales to commence shortly thereafter, in small but steadily increasing volumes.

New Executive Team Appointments

The Company is also pleased to announce the appointment of two new members to its executive team to continue to add depth and breadth for the next phase of its growth. Clinton Smith, who has been General Manager, Saskatoon since last January, has been appointed VP Operations, and Deane Pittman is joining the company as VP Engineering. Both Clinton and Deane will have direct and key roles related to the further ramp-up and capacity growth in Saskatoon as well as the development of the Minot facility.

Clinton Smith has more than 20 years in senior operations management positions in the food industry, playing key roles in all aspects of the business. Clinton spent 9 years with Canada Safeway Limited, one of Canada's largest grocery chains, managing food production operations for Lucerne Foods, with annual sales of over $500 million. In his last position as VP Canadian Operations, his team was responsible for all aspects of 12 Canadian food processing plants, improving sales and profitability by more than 100% over a 2 year period while increasing food safety controls and improving operations. Prior to that, he held three related positions at different companies including Director, International and Domestic Sales with XL Foods, where international sales were doubled during his tenure while simultaneously increasing productivity and reducing loss and waste. Clinton also has significant training in loss control management and lean manufacturing practices and holds a B.Sc. (Agriculture) from the University of Saskatchewan.

Deane Pittman has more than 30 years experience including holding successive positions as maintenance manager, controls specialist and plant engineer with Procter and Gamble in Canada; senior technical manager and director of quality at Molson Breweries; director of engineering and construction services at generic drug manufacturer Apotex Inc. with oversight and direct involvement in more than $700 million in capital projects and start-ups; and most recently as project director for the construction of a $100 million research and discovery facility with the pharmaceutical company Sanofi Pasteur. Deane also has extensive training and implementation experience in Total Quality Management and measurement systems and holds a Mechanical Engineering degree from McGill University.

"We are very pleased to welcome Clinton and Deane to the executive team, where they can utilize their significant skill and experience to help shape BioExx into a world-class operating company," said Chris Carl, BioExx CEO. "Getting through our internal audit definitely brings us one step closer to our goal of commencing human food sales. However, there is little doubt that bringing a first-of-its-kind technology to market is a challenging endeavour, and that BioExx is continuing to build a strong team of diverse and talented people to help ensure that these challenges are met successfully."

About BioExx Specialty Proteins Ltd.

Headquartered in Toronto, Canada, BioExx is a leading technology and industrial processing company focused on the extraction of oil and high-value proteins from oilseeds for the global food, beverage, and nutrition markets. BioExx uses patented and patent-pending technology that utilizes significantly lower temperatures than conventional methods for extracting the final quantities of oil necessary to enable its simplified and patent- pending methods for separating proteins from oilseeds. Relative to other commercial processes, the low temperature BioExx process results in comparatively low energy requirements, environmentally sound extraction and protein separation processes, and very high human food yield that cumulatively have the potential to make a highly valuable contribution to global food and protein supply while maintaining an excellent environmentally sustainable footprint. BioExx operates a commercial scale extraction facility in Saskatoon, Saskatchewan, is in development stages on it second plant in Minot, North Dakota and has a mission to construct additional and larger processing facilities on a global basis.

To find out more about BioExx Specialty Proteins Ltd. (TSX: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, competition in its target markets, the demand for BioExx's products, the availability of funding, the efficacy of its technology, and the anticipated costs of BioExx's 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's expectations and projections.

Contact Information