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

Bio-Extraction Inc.

November 15, 2007 10:45 ET

BioExx and Viterra Sign Memorandum of Understanding for Canola Seed Supply to Planned BioExx Saskatoon Extraction Facility

TORONTO, ONTARIO--(Marketwire - Nov. 15, 2007) - Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx") is pleased to announce that it has concluded a Memorandum of Understanding ("MOU") with Viterra (TSX:VT) to enter into a definitive Supply Agreement for the supply of canola seed to the planned BioExx Saskatoon extraction facility. The key terms of the MOU, to be incorporated into the definitive Supply Agreement, are as follows:

- Viterra to supply 40,000 metric tonnes of Canada Number 1 canola on an annual basis, deliverable in accordance with an agreed forecasting schedule. In the event the BioExx facility exceeds its design capacity, BioExx has the option to increase the supply to an annual rate of 50,000 metric tonnes on ninety days notice.

- The term of the Supply Agreement will be five years, automatically renewing for two successive terms of two years each, unless either party gives notice of non-renewal.

- Viterra will supply on commercially competitive terms that reflect market cost, transportation, storage, and other cleaning and handling costs, plus a fixed administration fee, which fee is set on an annual basis during the term of the agreement.

- Viterra will be the exclusive seed supplier to the BioExx facility during the term of the agreement, and shall have first right to supply future BioExx extraction facilities subject to the parties' agreement on commercial terms for same in each such instance.

- All deliveries under the Supply Agreement will be subject to the standard Viterra contract of purchase and sale for each such delivery.

- Viterra and BioExx have also agreed to work together on other business opportunities, including seed and feed research, seed production, licensing and sales, and specialty product off-take and merchandising agreements for oil and meal and other by-products produced at the BioExx facility.

- The MOU remains in force through June 2008, however the parties intend to move expeditiously to the completion of the definitive Supply Agreement.

"We are very pleased to have completed this MOU with such an accomplished and forward looking company as Viterra. Their professional and straightforward approach to the market fits well with the culture that BioExx has worked hard to develop, and we look forward to completing the definitive supply agreement in an expedited manner," said Chris Carl, BioExx CEO and founder. "This agreement represents another successful and important step towards construction and operation of our first plant, and to building a strong base of key long-term partners as BioExx completes its plan to become a leading producer of specialized, high value products from oilseeds such as canola."

Viterra, formed from the merger of Saskatchewan Wheat Pool Inc. and Agricore United, is Canada's largest handler of grains and oilseeds, with over 40% market share, more than 100 elevators and 2 million metric tonnes of storage capacity. Viterra also operates 276 agri-products retail outlets across the prairies.

"We believe the BioExx technology offers an interesting and compelling oilseeds extraction platform. Although we are Canada's largest grains and oilseeds supplier, we also have a strong culture of research and innovation and we are always looking for opportunities to work with innovators such as BioExx," said Fran Malecha, Viterra's Chief Operating Officer. "We anticipate that this will represent the beginning of a long and rewarding relationship for both companies."

About Viterra

Saskatchewan Wheat Pool Inc., doing business as Viterra, is Canada's leading agri-business, with extensive operations and distribution capabilities across Western Canada, and with operations in the United States and Japan. The new company is diversified into sales of crop input services and equipment, grain handling and marketing, livestock feed, agri-food processing and financial products. These operations are complemented by value-added businesses and strategic alliances, which allow Viterra to leverage its pivotal position between Prairie farmers and destination customers. The Company's common shares are listed on the Toronto Stock Exchange under the symbol VT.

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 agriculture (primarily oilseeds), alternative energy crops, pharmaceutical, nutraceutical, 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.

Contact Information

  • Bio-Extraction Inc. Chris Schnarr Chief Financial Officer (416) 588-4442, x.111 Email: cschnarr@bioexx.com Website: www.bioexx.com
    or
    Investor Relations: Brisco Capital Partners Scott Koyich President (403) 262-9888 Email: scott@briscocapital.com
    or
    Viterra Peter Flengeris Media Relations, Investor Relations and Corporate Affairs (306) 569-4810 Website: www.viterra.ca