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

Bio-Extraction Inc.

October 18, 2007 07:00 ET

BioExx Confirms Site for Oilseed Process Facility and Releases Third-Party Protein Meal Test Results

TORONTO, ONTARIO--(Marketwire – Oct. 18, 2007) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it has concluded an Offer to Purchase for an industrial site at the northern perimeter of Saskatoon, Saskatchewan. The site is well suited for the 40,000 metric tonne per year canola oilseed processing facility previously announced by BioExx, and is situated in close proximity to a large canola seed supply basin.

BioExx has also engaged the services of the Saskatoon office of AMEC Engineering to assist BioExx in preparing all of its required environmental and construction permits. The BioExx technology utilizes significantly less heat energy than conventional extraction facilities and as a result is expected to have very low emission levels of any kind. This is consistent with the BioExx mandate to employ state-of-the-art control technologies to ensure that it has extremely low, or where possible, zero emissions. BioExx believes that AMEC, with almost 50 years of experience in Saskatoon, combined with its deep international knowledge and resource base, is ideally suited to assist BioExx with this process.

On another front, BioExx is also very pleased to be able to release the results of a recently completed and comprehensive study entitled "Report on Feed Quality Parameters and Preliminary Market Feasibility of BioExx Meal", undertaken by the Feeds Innovation Institute at the University of Saskatchewan. The study comprised a standard feed analysis, comparing BioExx canola meal to a typical commercial canola meal derived from the industry standard hexane extraction method.

The study confirmed that, based on a number of relevant metrics, the BioExx meal is of higher nutritive quality than standard commercial meals. Although it could not be established that this would translate to a premium price for the BioExx meal in the general market, it is believed it may attract substantial price premiums in specialty applications. While confirmation of the quality and value of the BioExx canola meal is important, insofar as BioExx intends to further separate protein from the meal, and given that the protein sales are expected to be a key economic metric and growth driver for BioExx, the primary purpose of the study was more particularly to analyze and confirm the protein quantity and quality of the meal.

To that end, the key results of the study are as follows:

- The BioExx meal was significantly higher in protein content than regular meal, and considerably higher in soluble protein (over three times the soluble protein of regular meal). Because of its greater bio-availability and increased nutritive value, as well as increased functionality, soluble protein is considered to be the highest quality and most valuable form of protein in many applications.

- Quality and value of protein can also be considered in the context of the profile of individual amino acids which comprise the protein. Most notably, BioExx displayed higher lysine content (the most important amino acid) as well as higher methionine and cystine (the second most important amino acids). This enhanced amino acid profile, combined with an expectation of greater bio-availability, indicates a superior product.

- From an environmental perspective, the higher solubility of the BioExx proteins would most likely lead to a significant reduction in nitrogen excretion by livestock, thereby assisting in mitigating environmental issues relating to nitrogen loading of soil.

- With respect to market applications, the BioExx protein meal lends itself to the higher end and higher value uses, such as milk replacers for calves and piglets, high-protein aquafeeds (with a simple dehulling process to reduce fibre content), as well as pet foods and human food-grade uses.

- In addition to its very attractive protein profile, BioExx demonstrates a uniquely low level of certain anti-nutritional components. Specifically, the indolyl family of glucosinates in protein feeds above certain levels are believed to have deleterious health effects to animals consuming the meal. BioExx results show uniquely low levels of these components not normally achievable in standard meals produced with traditional manufacturing processes.

"We are excited to obtain this very strong validation of our high value and positioning in the growing protein market", said Chris Carl, President of BioExx. "In addition to confirming the retention of greater quantities of higher value proteins, the report also supports the expectation that BioExx will be able to separate its proteins to produce Protein Concentrates and other similar products at a much lower cost than more conventional extraction or oilseed crushing methods. We believe that this report provides further confirmation that we have a strong scientific and economic foundation for the construction of our Saskatoon plant, and we will continue to move at an accelerated pace toward that endeavour".

As a final note, to ensure equal awareness among investors, BioExx advises that it has commissioned and received an Initiating Report on the company from Toronto-based eResearch, which report has been posted for public viewing on the Investor Relations page of its website at www.bioexx.com.

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). Versus traditional technologies, the patented BioExx technology can offer lower extraction costs, higher quality extracted materials, and material incremental revenue opportunities as its extractions can substantially retain the value of inherent proteins and other sensitive compounds - with all this being completed 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.

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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