BioExx Specialty Proteins Ltd.
TSX : BXI

BioExx Specialty Proteins Ltd.

September 14, 2010 07:47 ET

BioExx Updates Product Certification Status

And Provides Voluntary Disclosure for Share Sales by Founder

TORONTO, ONTARIO--(Marketwire - Sept. 14, 2010) - BioExx Specialty Proteins Ltd. (TSX:BXI) is pleased to provide an update regarding its progress toward the various certifications required by the company prior to commencing sales of its food-grade protein isolates as expected later this year. The Company is currently engaged in testing and evaluation programs with more than 30 potential customers. Many of these have been engaged through the Company's distribution partner Helm AG, and the majority are based in the United States with the balance primarily in Europe. These companies range in size from small niche producers to large multinational companies and all are in receipt of sample products that are subject to Material Transfer Agreements and/or Confidentiality Agreements.

Most of these potential customers are ready to engage in final trials leading to purchases once food-grade protein from the full scale facility is available on a continuous basis. Feedback has been consistently positive due to high functionality, high overall amino acid quality, high solubility, low anti-nutritional factors, and the generally positive attributes of canola protein isolates extracted at low temperatures, as compared to other plant sources.

To sell food-grade protein to these customers, BioExx requires certain certifications both for the protein products and for the Saskatoon production facility itself.

Regarding the facility, BioExx is in the process of extending its existing HACCP/ISO/GMP certification that was obtained last year (see October 26, 2009 news release) for the crush plant to the rest of the plant. This is expected to take approximately 60 days after continuous food- grade production is commenced. This certification is not a regulatory requirement but rather a general market requirement, and the process can only be completed after a production facility is in continuous operation. BioExx has already begun working with Silliker Inc., the leading internationally accredited provider of global food safety and quality consulting, to assist in systems design and preparation for the final audit and certification. The final certificate will, following a successful audit, be issued by NSF-ISR, which is a not-for-profit, non-governmental organization that is the world leader in standards development, product certification, education, and risk-management for public health and safety.

Regulatory product certifications vary by geographical jurisdiction. In the United States, which accounts for approximately 25% of global food ingredient protein demand (source: Global Industry Analysts Inc.), BioExx requires, and has obtained, Self-Affirmed GRAS (Generally Regarded as Safe) status in accordance with the regulations of the US Food and Drug Administration (see November 18, 2009 news release). The self-affirmed GRAS status was obtained as a result of a detailed process that required a thorough review of both the manufacturing process and the resulting chemical profile of each product by independent and qualified experts in the fields of toxicology and allergenicity. The GRAS review was completed by Keller and Heckman LLP based in Washington D.C., whose comprehensive food and drug practice is one of the largest in the world, having represented companies in front of the FDA in matters such as this for more than 40 years. Self-Affirmed GRAS is all that is required for BioExx to sell its protein products into most human food applications.

As BioExx has noted previously, in selected situations, such as infant formula and certain clinical nutrition products, some customers may request BioExx to also obtain GRAS Notification status directly from the FDA, and accordingly BioExx does intend to complete the GRAS Notification process in due course. In the interim, the current self-affirmed GRAS status is sufficient to facilitate the Company's growth and execution of its business plan.

In Europe, BioExx requires a food safety registration issued by the European Food Safety Authority. BioExx has, in conjunction with Helm AG, commenced work on this registration process and expects a favourable outcome on a timeline consistent with plans for sale of proteins into Europe.

BioExx has a similar product certification process underway in Canada and will seek to extend certifications into other jurisdictions as and when required.

Voluntary Disclosure

The Company also announces that its founder and CEO, Chris Carl, is engaging a financial manager to dispose of up to 15% of his holdings in BioExx over a 12 month period, for personal financial planning and debt reduction reasons. This will be based on monthly targets to be set with the manager, after which the manager will have full discretion as to volume and timing, subject of course to scheduled and unscheduled insider trading blackout periods. All prescribed insider transactions, by Mr. Carl or others, will be subject to reporting requirements in accordance with applicable securities regulations.

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.

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