SOURCE: Lexaria Corp.

November 09, 2006 09:00 ET

Debt Eliminated; New Wells Successful in Mississippi

VANCOUVER, BC -- (MARKET WIRE) -- November 9, 2006 -- Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") announces that it has completed an agreement to eliminate its debt of US$2 million. The Company has converted its $2 million debt to equity, priced at $0.50 per common share, and issued 4 million warrants to the former debt-holders, each warrant good to purchase one common share at a price of $0.60.

This transaction has closed, and Lexaria Corp. now has no long-term debt. All shares and warrants issued are restricted under applicable securities rules. Lexaria Corp. now has 21,582,000 shares issued and outstanding, and 4,000,000 warrants issued and outstanding.

Lexaria Corp. also announces that its latest well, the F-4 located in Palmetto Point, Mississippi, has been successfully completed to 4200 feet. The F-4 is the eighth well in a 10-well program in which the Company has a 20% interest. The Company has been informed by the operator that this well has excellent permeability and porosity in a 9-foot section between shale. Production casing has been set and cemented.

Additionally, the Company announces that the first well (CMR-USA 39-14) in up to a 50-well program in Mississippi in which the Company has a 40% interest has been successfully drilled to 3200 feet and logged and is showing approx. 24 feet of gas pay.

All successfully completed wells will be tied in for production as soon as practical.

About Lexaria Corp.

Lexaria Corp. is an oil & gas company active in Mississippi, Oklahoma and in Alberta, Canada. The main focus currently is Mississippi, where it holds between 20% and 40% gross interests in various gas and oil projects. Lexaria routinely evaluates additional oil & gas projects and corporate opportunities.

Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. The Company has no official gas or oil reserves at this time and may not have sufficient funding to thoroughly explore, drill or develop its properties. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings.

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