SOURCE: Lexaria Corporation

August 14, 2008 11:16 ET

Lexaria Corp. Operations Update

VANCOUVER, BC--(Marketwire - August 14, 2008) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") provides this update on operations, production, and oil-field development plans.

Field operations have recently commenced in the Belmont Lake Oil Field in Mississippi after interruptions due to the unusually severe flooding of the Mississippi River from January to July, 2008. The Company is pleased to report that although production had been intermittently impacted by these adverse weather conditions, Lexaria still managed some production at all times during the challenging conditions. Although revenue and cash flows were not maximized, they still have permitted the company to remain cash flow positive.

A workover rig is expected to arrive imminently, and will be used to service the two existing Belmont Lake oil wells and will include the installation of down-hole pumps. Oil production is expected to resume within two weeks. The wells had previously flowed only on their natural pressure, and the new pumps are expected to increase and stabilize the production rates. The new pumps are powered by compressed natural gas pressure and require no electricity or mechanical power at the well locations, which it is hoped will mitigate future interruptions in production due to seasonal ground water flooding, etc.

Detailed plans including future well locations have been assembled and reviewed. Data that will be generated from the production of the two existing wells, as well as drilling data from any future wells to be drilled, will all be used to optimize the development of Belmont Lake. At this point, we expect that between 3 and 12 additional wells could be drilled to fully develop this field.

The Company has had discussions regarding its operational funding requirements and development commitments and hopes to issue additional news on this subject. Lexaria also has many locations for exploration wells to be drilled in other Mississippi locations outside of Belmont Lake, which are currently being evaluated and prioritized.

Investors are invited to visit the Lexaria Corp.IR Hub at www.agoracom.com/IR/Lexaria where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to LXRA@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

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 30% and 50% 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, weather, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. There can be no assurance that expected oil and gas production will actually materialize; and thus no assurance that expected revenue will actually occur. There is no assurance the Company will have sufficient funds to drill additional wells, or to complete acquisitions or other business transactions. Such forward-looking statements also include estimated cash flows, revenue and current and/or future rates of production of oil and natural gas, which can and will fluctuate for a variety of reasons; oil and gas reserve quantities produced by third parties; and intentions to participate in future exploration drilling. Adverse weather conditions can delay operations, impact production, and cause reductions in revenue. The Company may not have sufficient expertise to thoroughly exploit its oil and gas properties. The Company may not have sufficient funding to thoroughly explore, drill or develop its properties. Access to capital, or lack thereof, is a major risk. 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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