SOURCE: Lexaria Corporation

March 06, 2008 08:00 ET

Revenues Increase

VANCOUVER, BC--(Marketwire - March 6, 2008) - Lexaria Corp. (OTCBB: LXRA) (the "Company" or "Lexaria") is pleased to announce an increase in revenues for the first fiscal quarter ending January 31, 2008 and has for the first time generated positive cash flow.

For the three months ending January 31, 2008, Lexaria recorded revenue of $354,340 compared to just $21,127 in the quarter ending January 21, 2007. The increase in revenue is due to increased oil and natural gas production and is evidence of Lexaria's sensible business plan that has concentrated on building a sustainable business and operating company.

President Chris Bunka said, "While our absolute numbers are still small, I've always been confident that we would turn cash flow positive and begin to generate a gross profit. Lexaria is growing rapidly and I expect to exit 2008 at far higher production and revenue rates than we began the year. This is the year that we grow our cash flows to a sufficient degree to allow us to reinvest and accelerate our growth."

During the rest of 2008, Lexaria's focus will be first on the low-risk development of the Belmont Lake oil field, where it believes much larger increases in oil production are possible. The Company believes this will build production and cash flow rapidly and with the least risk possible. Additional exploration wells will also be drilled on and near the 32,000 acre Palmetto Point area.

During the quarter the Company produced from three oil wells in Mississippi; one oil & gas well in Oklahoma; and about nine gas wells in Mississippi. Production from most of the Mississippi wells has still not reached normalized rates and so variances in current and future production should be expected. Operations are underway to install pumps at the two Belmont Lake oil wells, which when complete should normalize production at average rates that are higher than current rates.

Lexaria has filed its Form 10QSB at the SEC Edgar website.

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, 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. 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. 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.

Press Release #2008023

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