BioExx Announces Second Quarter Results



    TORONTO, Aug. 30 /CNW/ - Bio-Extraction Inc. (TSX-V: BXI)
(http://www.bioexx.com), announced today its results for the fiscal second
quarter ended June 30, 2007. Bio-Extraction Inc. (the "Corporation"), formerly
Lifesciences Capital Corp., was a CPC under TSX Venture Exchange Policy 2.4
until the closing of its Qualifying Transaction with Bio-Extraction Ltd. on
May 9, 2007. The Qualifying Transaction constituted a Reverse Take-Over (the
"RTO") of the Corporation by Bio-Extraction Ltd. under the policies of the
Exchange. The consolidated financial statements for the period ended June 30,
2007 therefore reflect the assets, liabilities and results of operations of
Bio-Extraction Ltd., the legal subsidiary, prior to the reverse takeover and
the consolidated assets, liabilities and results of operations of the
Corporation and Bio-Extraction Ltd. subsequent to the reverse takeover. The
consolidated financial statements are issued under the name of the legal
parent (Bio-Extraction Inc.), but are deemed to be a continuation of the legal
subsidiary (Bio-Extraction Ltd., or "BioExx").

    Results of Operations
    ----------------------

    Revenue

    During the quarter, the Corporation earned $7,626 of interest revenue,
and $9,503 for the year-to-date, from interest-bearing marketable securities.
The Corporation earned no operating revenues during the quarter or the
six month year to date period.

    Expenses

    The Corporation incurred administrative and general expenses during the
quarter of $526,561, and $866,387 for the year-to-date (including $185,734 and
$249,820 respectively, relating to stock-based compensation), compared to
$115,220 and $318,930 for the comparable prior year periods. The significant
increase in expenditures reflects the ramp up of activities in all areas of
operations, as the Corporation intensifies efforts in technology development,
market engagement, and public company administration. In the comparable prior
year periods, the Corporation's operations were much less developed and were
undertaken on a significantly smaller scale.
    The Corporation has allocated management and capital resources during the
quarter and year-to-date towards the completion of the RTO, and since that
time to the integration of BioExx with the Corporation, and to related public
company administration. Key business resource allocations during the quarter
included advanced testing of the BioExx oil extraction technology for
application in the oilseed (and biofuels) market, testing of the efficacy of
this technology in the retention of the protein value embedded within the
initial biomass, and process engineering to facilitate commercial-scale
implementation of the technology. In tandem with the technology work during
the quarter, the Corporation has been advancing commercial activities relative
to securing biomass supply and the identification of end markets and customers
for extracted oils and proteins.

    Net Loss

    The Net Loss for the quarter was $513,584 and for the year-to-date was
$851,533, compared to $114,693 and $318,403 for the 2006 comparable prior year
periods. This increase in net loss is a result of the increase in
Administrative and General Expenses as discussed above. On a per share basis
then, the Net Loss is $0.01 for the quarter and $0.02 for the year-to-date,
versus $0.00 and $0.01 in the comparable prior year periods.

    Working Capital and Liquidity

    As at June 30, 2007, current assets were $1,593,291, including cash and
short-term investments of $1,117,835. Against accounts payable and accrued
liabilities of $218,171, this results in net working capital of $1,375,120.
This compares to current assets of $835,396 and net working capital of
$502,171 at December 31, 2006. The increase in working capital is a result of
the completion of the RTO and the cash received thereby.

    More Information

    Complete financials and Management Discussion & Analysis are available at
www.sedar.com.

    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, for its own account and as a service to
industrial customers. Global in scope, the BioExx target markets include
extractions in food oils and fixed oils (including bio-fuels), nutraceutical,
pharmaceutical, and industrial cleansing (eg. specialty steels). Versus
traditional technologies, the patented BioExx technology can provide the
benefit of lower extraction costs, higher quality extracted materials, and
material incremental revenue opportunities as its low-temperature extractions
can substantially retain the economic value of inherent proteins and other
sensitive compounds - with all this being completed in an environmentally
responsible manner.

    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.

    %SEDAR: 00023700E




For further information:

For further information: Bio-Extraction Inc., Chris Schnarr, Chief
Financial Officer, (416) 588-4442, x.111, cschnarr@bioexx.com; Brisco Capital
Partners, Scott Koyich or Gordon Aldcorn, (403) 262-9888,
scott@briscocapital.com, gordon@briscocapital.com

Organization Profile

BIO-EXTRACTION INC.

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