BXI Bioexx Specialty Proteins Ltd Com Npv

Bio-Extraction Inc. (TSX VENTURE:BXI)

Highlights

- BioExx to construct wholly-owned 80,000 MT per year Canola processing facility

- Infrastructure readily available at competitive cost at the Minot Site

- Financing to comprise up to 50% local debt and incentives with balance to be
leveraged from Saskatoon facility


- Minot is a business friendly community for environmentally sustainable processors

Bio-Extraction Inc. (TSX VENTURE:BXI) ("BioExx" or "the Company") is pleased to
announce that, after extensive review, it has selected Minot, North Dakota as
the location for its second Canola Protein processing facility. BioExx is a
Canadian company that extracts oil and high-value proteins from oilseeds for the
global food market utilizing patented low-temperature extraction and proprietary
protein separation technology.


BioExx technology can generate up to five times as much food value from a tonne
of canola compared to conventional processes and this can have a potentially
large impact on global food production in the long term. Purified protein has
become much more important in food and beverage production in order to satisfy
growing global demand. The protein additive market is currently a USD
$16-billion industry, and is projected to grow to over $25 billion in the next
seven years. The most significant trend within this market is the substitution
of plant proteins for animal proteins, driven by improved economics and greater
environmental sustainability.


The location decision was made after reviewing several domestic and
international alternatives and comparing each across a variety of metrics
including:


- Feedstock supply

- Infrastructure availability and competitive costs to support plant (land,
rail, energy, labour)


- Availability of favourable funding programs

- Discussions with local utilities, design engineers and construction contractors

- Local, regional, and national support

As a result of this effort, BioExx is pleased to have signed a Letter of Intent
with the City of Minot, through its economic development arm, the Minot Area
Development Corporation ("MADC") to locate the facility on a 10 acre lot in
their fully developed and fully serviced Value-Added Agricultural Complex.


As outlined in the Letter of Intent, BioExx will now proceed with the final
development stages of the project (including environmental permitting, site
analysis, building design, and supplier and customer contracting). Subject to
meeting certain credit requirements, MADC will bring forth a complimentary
financing and incentive package. In completing prerequisite development
activities by late 2009, BioExx expects to finance the Project following a
successful ramp up of Protein Isolate operations in Saskatoon. Construction
would then commence as soon as ground and weather conditions permit in Spring
2010. This would lead to a goal of bringing the plant on-line and starting
production ramp-up in early 2011.


Subject to BioExx meeting certain credit requirements, the MADC, in conjunction
with private lenders and the state-owned Bank of North Dakota, has proposed to
provide approximately 50% of the required USD $50 million project cost in the
form of loans and/or capital leases. Favourable loan terms could be available
for qualifying companies through a program under which the US Department of
Agriculture guarantees a portion of the total debt package. While maintaining
conservative debt service ratios, BioExx intends to finance the balance of the
requirement to the greatest extent practicable by leveraging cash flows from its
Saskatoon plant once it has ramped up its protein production operations. BioExx
intends to finance the facility using traditional forms of debt and intends to
avoid any types of financing that would be highly dilutive to shareholders or
that would involve future oriented conversions to equity.


"Minot is an agriculture and business friendly community that has put tremendous
effort into providing infrastructure that meets the requirements of companies
looking for a new base of manufacturing operations," says Chris Carl, CEO of
BioExx. "This allows us to meet our goal of expanding internationally and into a
different growing region, while at the same time enjoying a reasonable proximity
to our first plant location."


BioExx remains deeply focussed on completion of its Saskatoon protein production
operation, and as such is creating an independent development team comprised of
a Toronto-based development manager and associations with Minot-based
engineering firms.


"We are pleased to have BioExx, a Canadian-based company, expand into Minot,
North Dakota. Minot has put significant capital investment into the Value-Added
Agricultural Complex to build-out strategic assets that companies like BioExx
can leverage," said Minot Mayor Curt Zimbelman. "We believe with the investment
made in the Ag Complex, Minot can help BioExx become a world leader in the
industry of high value proteins."


Minot is the fourth largest city in North Dakota, near the Canadian border and
is already twinned with the town of Moose Jaw, Saskatchewan. It is well served
by both road and rail, as a hub for North Dakota agriculture. North Dakota has a
strong economy and is one the largest growers of Canola in the United States.


"We've worked hard to diversify our agriculture industry by providing the
incentives that will encourage value-added ventures throughout North Dakota,"
said North Dakota Governor John Hoeven. "North Dakota leads the nation in
oilseed production, and BioExx's expansion into the state will create
value-added opportunities and provide another market for growers."


Business Risks

BioExx would like to remind its shareholders, and other interested parties, that
it is not yet in full operation at its first specialty protein facility in
Saskatoon, and accordingly is subject to the normal business risks of all
companies at this stage of development. The Company has completed the building
and the 40,000 tonne per year crushing facility with the extraction and protein
processing portion of the facility still under construction. BioExx is pleased
with its progress at the Saskatoon facility and is proud of all that it has
achieved to date to mitigate as much as possible these normal business risks.


About Bio-Extraction Inc.

Headquartered in Toronto, Canada, BioExx is a leading technology company focused
on the extraction of oil and high-value proteins from oilseeds for the global
food market. BioExx' patented technology allows for the use of significantly
lower temperatures than conventional methods in extracting the active
ingredients and oils from oilseeds, resulting in higher yields and
higher-quality meal, oils and proteins. BioExx' low energy requirements,
environmentally sound process, and high-yield production have the potential to
make a valuable contribution in alleviating food scarcity. BioExx operates a
commercial scale extraction facility in Saskatoon, Saskatchewan, and has a
mission to construct additional and larger processing facilities on a global
basis. To find out more about Bio-Extraction Inc. (TSX VENTURE:BXI), please
visit www.bioexx.com


"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, competition in its target markets, the demand for BioExx's products,
the availability of funding, the efficacy of its technology, and the anticipated
costs of BioExx's 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 BioExx's expectations and
projections."

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