BioExx Closes $11 Million Private Placement after Exercise of Agents' Option


    TORONTO, Jan. 29 /CNW/ - Bio-Extraction Inc. (BXI:TSX-V) ("BioExx") is
pleased to announce that it has closed its previously announced private
placement (the "Offering"), sold by a syndicate of agents led by Canaccord
Capital Corporation and including Blackmont Capital Inc. and Research Capital
Corporation (collectively, the "Agents").
    The Offering consisted of $10 million of units priced at $0.25 per unit,
each unit consisting of one common share and one-half of one common share
purchase warrant. Each whole warrant entitles the holder to purchase an
additional common share at a price of $0.40 for a period of 24 months
following closing. The Agents were previously granted an option to increase
the size of the Offering by up to 20% at any time up to 48 hours before the
Closing (the "Agents' Option").
    Gross proceeds of the offering, after taking into account the exercise of
the Agents' Option, was $11,069,750. The net proceeds from the Offering will
be used to fund the construction and start-up of the previously announced
BioExx canola extraction facility in Saskatoon, for working capital, and for
general corporate purposes.
    "First and foremost, we want to thank those investors who have placed
their confidence in us by participating in this private placement", said Chris
Carl, BioExx Chief Executive Officer. "We believe we have created an
exceptional team at BioExx, who together have successfully developed unique
and tremendously valuable technology, which we believe will enable us to
generate significant returns in the agriculture and renewables sectors for
many years to come. With the completion of this financing during difficult
markets, we look forward to moving ahead on construction of our Saskatoon
facility, and thereafter bridging quickly into other oilseed processing
markets on a global scale."
    Subject to regulatory approval, BioExx also intends to issue today an
aggregate of 46,128 common shares at $0.25 per share to Chris Carl, in
settlement of an $11,532 pre-existing obligation to Mr. Carl, and 45,984
common shares at $0.25 per share to Ilja Troitschanski, in settlement of an
$11,496 pre-existing obligation to Mr. Troitschanski, in both cases relating
to deferred payment of management services incurred prior to June 30, 2007.
The obligation to issue such shares is disclosed in BioExx's interim financial
statements for the periods ending June 30, 2007 and September 30, 2007.

    About Bio-Extraction Inc.

    The global demand for ever higher food value from agriculture is growing
at an unprecedented pace, driven by population growth and economic growth. At
the same time, food supply constraints are increasing, due to urban
development of arable land, alternate uses of crops for bio-fuel and other
industrial purposes, and many crops having already maximized yields. The
result is an alarming imbalance between over-demand and under-supply.
    BioExx owns patented technology which allows for much lower temperatures
to be used for the extraction of active ingredients and oils from biomass.
This makes BioExx particularly well suited to process oilseed crops in a
manner that allows for the production of much higher value additives to the
food chain, in the form of higher yields of high value proteins which tend to
be temperature sensitive. While forming just a small, but very valuable part
of the solution to prominent global agricultural problems, BioExx has a
mandate to rapidly grow the company through the construction and operation of
extraction facilities around the world - and because of its much lower energy
requirements, to do so in a very environmentally responsible manner.
    To find out more about Bio-Extraction Inc. (TSX-V: BXI), please visit our
website at

    The TSX Venture Exchange has not reviewed this press release and neither
approved nor disapproved the information contained in this press release. The
statements made in this press release include forward-looking statements that
involve a number of risks and uncertainties. These statements relate to future
events or future performance and reflect management's current expectations and
assumptions. A number of factors could cause actual events, performance or
results to differ materially from the events, performance and results
discussed in the forward-looking statements, such as the economy, generally,
the demand for BioExx' products, the availability of funding, and the
anticipated costs of BioExx' plant construction and operation. These
forward-looking statements are made as of the date hereof and BioExx does not
assume any obligation to update or revise them to reflect new events or
circumstances. Actual events or results could differ materially from the
BioExx' expectations and projections.

    %SEDAR: 00023700E

For further information:

For further information: Chris Schnarr, Chief Financial Officer, BioExx,
(416) 588-4442, x.111,; Investor Relations: Scott Koyich,
President, Brisco Capital Partners, (403) 262-9888,

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