BioExx Update on 2007 Achievements and 2008 Plan

    TORONTO, Jan. 7 /CNW/ - For the benefit of its shareholders and other
interested parties, Bio-Extraction Inc. (BXI.V, "BioExx") is pleased to issue
an update of its milestone achievements during 2007 and its plan for 2008.
This update is not intended to be comprehensive, but rather simply to touch
upon selected items which management believes are most reflective of progress
in 2007, its strong late year momentum, and its path going forward, so that
all stakeholders might have a better understanding of the company's activities
to date and plans for the future.

    The Year in Review

    Public Listing: In May 2007, BioExx completed its CPC Qualifying
Transaction through the acquisition of Bio-Extraction Ltd. This transaction
provided much needed working capital to BioExx; a public listing of its common
shares, which have been trading on the TSX Venture Exchange under the symbol
BXI since May 22, 2007; and a platform from which to raise additional capital
for continued growth through the construction and operation of multiple
production facilities on a global basis.

    Technology Development: BioExx continued and accelerated its on-going
development activities at its Intermediate Sized Plant ("ISP"), with a view to
expediting its entry into major oilseed extraction markets. Across all key
metrics of oil extraction and soluble protein retention, as measured by time,
cost, and quality, BioExx technology performed very well. This again confirmed
management's expectations of the presence of significant competitive advantage
and material economic benefits in the oilseeds market. It also signalled full
commercial readiness. As part of this progress, BioExx filed for its fourth
patent on September 11, based on its unique continuous counter-flow process
design, to augment its portfolio of patents on its key extraction solvents.

    Commercial Scale Plant Construction: On the heels of completion of key
development and testing milestones, BioExx announced on September 28 its plans
to construct its first full commercial scale extraction facility, with a rated
capacity of 40,000 metric tonnes of canola oilseeds per year. At full
capacity, the facility should be able to produce more than 17.5 million litres
of canola oil (for further refinement into edible oil or biodiesel) and
13 million kg of canola meal annually. BioExx believes this facility will be
unique because, in addition to the oil and meal, it will also be capable of
producing up to 11 million kg per year of valuable protein concentrate, at a
standard purity level of 65%. Protein concentrate typically sells for as much
as five times the price of meal on a weight basis.

    Additional Plant Development Milestones: On October 4, BioExx announced
the engagement of its key engineering contract partner for design, procurement
and construction on the facility, Mentra Life Sciences. As a skilled and
respected engineering firm familiar with the BioExx technology from its work
on the BioExx ISP, Mentra is an ideal partner. On October 17, BioExx announced
that it had concluded an Offer to Purchase certain industrial lands on the
north end of Saskatoon, as the site for its plant. In addition, BioExx
announced on November 15 that it signed a Memorandum of Understanding with
Viterra, Canada's largest grain and oilseed handler, to secure the supply of
feedstock required for the plant, on commercially competitive terms, for five
years with two renewal options of two years each.

    Market Readiness of Products: As commodity products, the oil and meal to
be produced at the plant are expected to be readily saleable through
established commercial channels consistent with conventional oilseed
processing facilities.
    What makes BioExx unique among typical commercial processors of canola is
that its technology lends itself very well to the ancillary low-cost
production of protein concentrates. These proteins will be targeted initially
and primarily at the aquaculture market. According to the Food and Agriculture
Organization of the United Nations, the global aquaculture market is estimated
to be in excess of $60 billion annually, accounting for almost one-third of
the world's fish supply, and it is anticipated that by 2010 aquaculture
production could exceed beef production. With feed comprising an estimated 40%
of aquaculture production costs, the quest for high quality and reasonably
priced protein feeds has become a significant focus of the industry, which
currently consumes an estimated 7-8 million tonnes of protein annually. The
need for new high protein feed sources as an alternative to the traditional
fish meals is driven by depleted wild fish stocks and the cycling of toxic
heavy metals through the feed chain. With a protein efficiency ratio (amount
of weight gain per unit of protein consumed) twice that of soy, and nearly on
par with beef and milk proteins, canola proteins can be an ideal fit for this
market need. The primary growth constraint in this respect to date has been a
lack of economical commercial quality supply of canola concentrates, an issue
which BioExx believes it can address from its planned Saskatoon production

    Organizational Development: BioExx announced on October 10 the formation
of its Science Advisory Board, comprising an extremely well-experienced,
knowledgeable, and respected team of four members from various disciplines.
This team brings tremendous market and technical knowledge in their respective
fields including engineering and design for low temperature extraction
technology, chemical innovations and diagnostic chemistry, large scale process
and product development, health and nutrition, and aquaculture nutrition and
feed development. The Board has already proved itself invaluable in terms of
both technology and commercial plant development milestones that have been

    Looking Ahead to 2008
    With the momentum established in the last half of 2007, the BioExx
technology, commercial presence, and management team are now firmly
established and well positioned to address key 2008 business plan milestones.

    Corporate Finance: Foremost among these milestones is completion of the
previously announced private placement of $10 million to provide funds
required for plant construction and start-up. Progress has been steady, and
efforts are targeted towards completing this financing before the end of
January, 2008.

    Plant Construction: Facilitated by the financing, BioExx will continue to
move forward with detailed engineering design and construction plans, to meet
timing targets of groundbreaking at spring thaw and start-up of the plant in
early Q4 2008. This state-of-the-art extraction facility, which is being
designed on a low or zero-emissions basis, should begin producing revenue
immediately upon start-up, with growth through ramp-up and into full operation
in early 2009.

    Personnel: As BioExx advances on the various fronts of its 2008 plan, it
will also continue to augment the depth and breadth of its team by adding key
individuals in key areas, most particularly those related to construction and
operation of the planned Saskatoon facility.

    Commercial Partnerships: During the construction period, BioExx intends
to continue working on additional commercial relationships with key potential
customers to secure forward sales of the various commodity products to be
produced at the plant. In addition, BioExx will continue to actively advance
partnering with companies requiring its proteins for use in aquaculture and
specialty animal feeds, in order to ensure demand and supply are apportioned
across multiple customers.

    Second Facility: The Company currently has received third-party interest
expressions for a soy facility in the United States, a rapeseed facility in
Europe, and a second canola facility in Canada. All opportunities will be
rigorously evaluated and filtered across a number of key metrics before final
selection is made. During the second half of 2008, BioExx will actively
commence efforts to site and negotiate key commercial contracts for its
second, larger processing facility.

    Research & Development: BioExx has already contracted with third parties
to continue active and on-going research and development activities throughout
2008. Key initiatives will focus on completion of protein concentrate
development for aquaculture, followed immediately (with some activities in
parallel) by development of even higher value protein products suitable for
human food markets. The team is targeting to complete initial product
development of these human-grade products late in 2008, and to enter the
regulatory approval process in 2009. It is expected that these higher value
protein products, which typically sell for three to eight times the price of
fish and animal feed concentrates, can represent a significant source of
economic upside in the already very attractive BioExx model.

    "During this past year we have successfully established strong
foundations across the areas of technology, market, infrastructure, and
personnel. From this solid base, 2008 will be our break-out year. We intend to
move prudently, but aggressively, to take advantage of the tremendous
opportunity before us", said Mr. Chris Carl, Chief Executive Officer of
BioExx. "Our timing and our positioning in the agri-business industry are
exceptional, leaving us well poised to move forward on our plans to construct
multiple oilseed processing facilities, at increasing scales and on a global
basis, with the goal of driving to become a world leader in the supply of
protein derivatives from oilseed crops. We believe this is also the path to
creation of tremendous value for our shareholders"

    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.

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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