May 24, 2007 08:00 ET

Ceapro Announces $2,000,000 Brokered Private Placement

EDMONTON, May 24 - Ceapro Inc. (TSX VENTURE:CZO) announces that
it has entered into a best efforts financing engagement letter with Northern
Securities Inc. ("Northern") for a brokered private placement of units
("Units") in the aggregate amount of $2,000,000 (the "Offering"). Each Unit
will consist of one common share and one half of one common share purchase
warrant. Each Unit will be sold at a price of $0.31. Each whole warrant is
exercisable into one common share, at an exercise price of $0.45, for a period
of 20 months from the date of issuance of the warrants.

In connection with the Offering, Northern will receive on closing a cash
commission of 7% of the gross proceeds and a number of broker warrants equal
to 7% of the number of Units sold under the Offering. Each broker warrant will
entitle the holder thereof to acquire one Unit at the price of $0.31 for a
period of 20 months from the date of issuance of the broker warrants. The
Corporation has also granted Northern an over-allotment option
("Over- Allotment Option") to increase the size of the Offering by an
aggregate amount of $1,000,000. President List Orders may also increase the
size of the Offering up to an additional $500,000 for aggregate proceeds of

The net proceeds of the Offering will be used for sales and marketing,
research and development, product and market expansion, general corporate and
working capital purposes.

Closing of the Offering is expected to occur on or about June 22, 2007.
The completion of the Offering is subject to the approval of the TSX-Venture
Exchange and other regulatory approval.

About Ceapro Inc.

Ceapro Technology Inc., Ceapro Veterinary Products Inc., Ceapro Active
Ingredients Inc. and Ceapro Bioenergy Inc. are wholly owned subsidiaries of
Ceapro Inc., which is a Canadian growth-stage biotechnology company. Our
primary business activities relate to the development and commercialization of
organic products for medical, cosmetic and animal health industries using
proprietary technology and natural, renewable resources. We will be applying
our technology to become an active participant in the bio-energy sector. We
have also introduced health and wellness services employing our CeaProve®
diagnostic technology.

The TSX has neither approved nor disapproved of the information contained
herein -

This release may contain forward-looking statements. Various factors
could cause actual results to differ materially from those projected in
forward-looking statements. Although the Company believes that the
forward-looking statements contained herein are reasonable, it can give no
assurance that the Company's expectations are correct. All forward-looking
statements are expressly qualified in their entirety by this cautionary

Contact Information

  • Dr. Mark Redmond, President and CEO, Ceapro
    Inc., Telephone (Edmonton): (780) 421-4555; Nicole Blanchard, B.Sc., B.Comm.,
    Managing Partner, Sun International Communications, Telephone (Montreal):
    (450) 627-6600