Xylitol Canada Inc.

Xylitol Canada Inc.

August 14, 2013 09:05 ET

Xylitol Canada Provides Update on Its Commercialization Efforts

TORONTO, ONTARIO--(Marketwired - Aug. 14, 2013) - Xylitol Canada Inc. (TSX VENTURE:XYL) ("Xylitol Canada") is pleased to provide an update concerning its xylitol and xylose commercialization efforts. Xylitol Canada is currently working with Mascoma Corporation ("Mascoma"), and these efforts centre on a bio-refinery which Mascoma is seeking to build in Drayton Valley, Alberta (the "Facility"). The planned Facility is expected to produce cellulosic ethanol, bio-electricity, and a xylose feedstock for Xylitol Canada to produce a commercial grade xylose for the production of xylitol. The project is currently at the feasibility stage and both Xylitol Canada and Mascoma are working to secure their required project financing.

It is intended that the Facility will be located on the Drayton Valley Bio-Mile, a municipally designated industrial area with a mandate to incubate and support emerging bio-based technologies. A successful Facility would reduce the environmental impact of xylose, cellulosic ethanol and other product extractions compared to conventional processes. Xylitol Canada has been developing its xylose production process since 2008 with a focus of producing xylose for the North America xylitol market. Andrew Reid, President and CEO of Xylitol Canada commented on the company's stated objective of becoming a vertically integrated producer of xylitol and xylitol products. "For the past five years Xylitol Canada has been working to develop the lowest-cost and highest-quality process for xylose and xylitol production. We are moving forward on one of our core objectives in providing our customers with the very best xylitol products at a price that is competitive with sugar sweetened alternatives. We look forward to continuing to work with our partners as we develop this opportunity."

In its annual report published in June 2013, Sustainable Development Technology Canada ("SDTC") confirmed that it is supporting front end development work for three projects through its NextGen Biofuels Fund. One of the approved projects is the Drayton Valley Biorefinery. It should be noted however that significant additional third party funding will be required to complete the project, and significant milestones will need to be met in order to maintain SDTC involvement and ensure the project's success.

About Xylitol Canada Inc.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada's business strategy is to leverage novel proprietary technology and processes to become North America's premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Forward Looking Statements

This press release contains forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xylitol Canada to be materially different from any future anticipated results, performance or achievements expressed or implied by the forward-looking statements. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to: the ability of Xylitol Canada to obtain necessary financing; the development of and demand for xylitol products; production of a commercial scale production facility; the economy generally; consumer interest in the services and products of Xylitol Canada; competition; and anticipated and unanticipated costs. While Xylitol Canada anticipates that subsequent events and developments may cause its views to change, Xylitol Canada specifically disclaim any obligation to update these forward-looking statements. These forward-looking statements should not be relied upon as representing Xylitol Canada's views as of any date subsequent to the date of this press release. Although the Xylitol Canada has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect Xylitol Canada. Additional factors are noted under "Risk Factors" Xylitol Canada's financial statements and related management's discussion and analysis.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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