Bio-Extraction Inc. Executes Joint Development Agreement with BioNex Energy Corp.



    NOTE: PREVIOUSLY RELEASED JUNE 4, 2007, BEING RE-ISSUED DUE TO THIRD-
    PARTY DISTRIBUTION NETWORK DIFFICULTIES ON DISSEMINATION OF ORIGINAL
    RELEASE.

    TORONTO, June 11 /CNW/ - Bio-Extraction Inc. (TSX-V: BXI) ("BioExx")
(http://www.bioexx.com) is pleased to announce it has signed a Joint
Development Agreement with BioNex Energy Corp ("BEC"). Under the terms of the
Agreement, BioExx and BEC will work together on a development study to test
and prove the commercial efficacy of the BioExx extraction technology for use
in tandem with a planned BEC bio-diesel production facility to be located in
western Canada.
    BEC is a developmental stage company which intends to use cold crushing
technology in its plant as a first-stage process for removal of oil from
canola and other high oil-content crops, and BioExx would provide the
second-stage process. The first stage of oil removal will utilize the BEC
process which removes approximately 80% of the oil from the biomass while
maintaining a consistently low temperature. In the second and final stage of
oil removal, the patented BioExx process will be employed to remove up to 100%
of the remaining oil while at the same time substantially maintaining the
protein value originally contained in the biomass. On a combined basis, this
process could improve yields of oil volume versus existing oil-removal
technologies while at the same time dramatically increasing the residual value
of the biomass. In some cases, BioExx may also be able to isolate the proteins
for use as protein additives in animal or fish feed and eventually for human
consumption.
    Testing of the process is expected to occur during the next 4 to 6 months
between the BEC test facility in Alberta and at the BioExx Intermediate Sized
Plant facility in Charlottetown, PEI. The intention of the test program is to
prove that the two-stage oil removal process is successful in (a) removing a
much higher percentage of the available oil, and (b) removing the oil using
low temperature extraction such that the incumbent proteins and other
nutritive content of the biomass is retained.
    Typically, oil is separated from biomass or crops using an extraction
method that involves heat, pressure and organic solvents. This process tends
to enjoy yields of 95% or more of the oil contained in the oilseeds and is
quite efficient at very large scale. Once the oil is removed, the remaining
material ("spent biomass") is heated to high temperatures to recover the
organic solvent. This high temperature process significantly degrades the
proteins and reduces the nutritive value of the meal. The meal is then sold at
moderate prices for use as animal feed. Unfortunately, when crop prices rise
at a faster rate than the underlying fuel price, profit margins from these
conventional facilities can be significantly eroded.
    The BioExx technology represents a substantial improvement over
conventional technology because it has the capability to remove up to 100% of
the oil but at a significantly reduced operating temperature while retaining
all of the nutritive content of the spent biomass. The spent biomass resulting
from this process can have substantially higher value because they can be sold
as higher quality animal feeds or other higher value protein applications and
products. The BioExx technology may therefore have the potential to
fundamentally improve the economics of bio-diesel manufacturing operations,
while at the same time mitigating the increasingly prominent "food versus
fuel" conflict over global crop usage.
    "We are very pleased to be working with BEC as an early-stage entry
partner for our bio-diesel sector applications. In a relatively young
industry, they have a strong team of veterans, and we look forward to their
guidance and experience for the testing of the BioExx technology for use in
Bio-Diesel applications," said BioExx CEO, Chris Carl. "We are optimistic that
this development project will provide all of the data needed to prove, at a
small commercial scale, that our patented technology is commercially superior
to any other known oil extraction process, and that in turn, BioExx has the
potential to meaningfully alter the economics of the production of biodiesel
on a global basis."
    BEC is a privately owned developer and operator of integrated oil seed
crushing and biodiesel production facilities. The first project in Alberta
will have an annual production capacity of 20 million litres of biodiesel,
30,000 tonnes of canola meal and 2,000 tonnes of glycerine. BEC believes the
appropriate market entry strategy is to build a modular plant that can expand
quickly to meet market demands and then to develop a number of distributed
plants across Alberta that work closely with local grower groups. The
biodiesel produced will then be shipped to terminal facilities for blending
into petrodiesel. BEC was formed by ex-employees of the Advanced Biodiesel
Group NA Ltd., is based in Calgary and has a senior management team
experienced in biodiesel production, project development, commodity trading
and business management.
    "Our team has great depth of experience and we understand the commercial
challenges that must be met to build a sustainable biodiesel business.
Technology selection is a critical part of this challenge and, having searched
the globe for the best technology available for efficient and effective oil
extraction for bio-diesel manufacturing, we have found nothing that compares
to what appears possible with the BioExx technology," said John Simpson,
President of BEC. "The prospect of extracting the maximum available oil and
retaining all of the original nutritive value, in an environmentally
responsible manner, is absolutely unique. To be successful in the production
of bio-diesel, a product subject to increasing worldwide demand, we must find
technologies that can substantially lower the overall production costs
compared to current methods. At BEC, our goal is to develop projects that use
best available technologies and to combine this with superior resource
management to allow for lowest cost, highest value production of bio-diesel
and related products. As our tests prove conclusive, we look forward to
working with BioExx in an increasing array of exciting development projects."

    About Bio-Extraction Inc.

    BioExx is involved in the development and commercialization of extraction
technology, which it intends to use to extract various active ingredients from
organic and inorganic materials, as a service to industrial customers.
Presently, the patented BioExx technology has two major applications: (1) the
extraction of organic materials from biomass such as plant, fish, and animal
materials, and (2) the cleansing of industrial materials. Global in scope, the
BioExx target markets include extractions in pharmaceutical, nutraceutical,
food oils and fixed oils (including bio-fuels) and industrial cleansing (eg.
specialty steels and plastics, glass). Versus traditional technologies, the
BioExx technology can provide customers with the benefit of lower extraction
costs, higher quality extracted materials, and incremental revenue
opportunities as its extraction process does not destroy inherent proteins and
other valuable compounds - with all this being completed in an environmentally
responsible manner.
    To find out more about Bio-Extraction Inc. (TSX-V: BXI), please visit our
website at http://www.bioexx.com

    The statements made in this Press Release may contain forward-looking
statements that may involve a number of risks and uncertainties. Actual events
or results could differ materially from the Company's expectations and
projections. The TSX Venture Exchange has not reviewed this press release and
neither approved nor disapproved the information contained in this press
release.





For further information:

For further information: Chris Schnarr, Chief Financial Officer,
cschnarr@bioexx.com, (416) 588-4442, x.111

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BIO-EXTRACTION INC.

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