BioExx Announces Q2 2008 Results and Provides Business Update

"We are very pleased with the progress made during the second quarter of 2008 towards commercial production, as we signed a long-term canola seed supply agreement with Viterra, Canada's largest handler of grain and oilseeds, contracted for and broke ground on the construction of the 44,000 square foot building in Saskatoon, and, subsequent to the end of the second quarter, signed a long-term commercial sales agreement with Shafer Commodities Inc. to purchase all of the canola meal produced at our Saskatoon facility," said Chris Carl, President and CEO of BioExx.

The company intends to secure long-term purchase agreements for BioExx canola oil as well as the BioExx protein concentrates that, in aggregate, will account for at least 90% of the expected output of the facility, before it reaches full operating capacity.

Expenses

The Company incurred expenses of $877,399 during the second quarter of 2008, or $582,354 excluding stock-based compensation. This compares to $526,561 and $276,741 in the second quarter of 2007, and to $808,002 and $438,082 in the first quarter of 2008. The increase results from the expanded scale and scope of the Company's activities. This includes continuing and increased R&D efforts, particularly in the protein development area and the drive to food-based protein products, as evidenced by the patent filing during the quarter. Sales and marketing and general expenses have also increased, as the Company is now actively engaging customers for the sale of its products, which resulted in the successful completion of a long-term sales agreement for the BioExx Meal subsequent to quarter end. Finally, expenditure levels have also increased as a result of expanded activities surrounding the construction of its Saskatoon canola extraction facility, which broke ground during the quarter. All of the foregoing expenditure increases are in accordance with and in line with the Company's business plan.

Interest Revenue

During the second quarter of 2008, the Company earned $82,971 of interest revenue, from interest-bearing marketable securities. Invested funds arose from the completion of private placements in January 2008 and in June 2008.

Net Loss

Net Loss for the second quarter of 2008 was $796,126, compared to $513,584 in the second quarter of 2007, and $750,827 in the first quarter of 2008. Again, the increased net loss flows primarily from increased activity levels across all areas of the Company, as discussed above. On a per share basis, Net Loss was $0.01 for the second quarter of 2008 compared to $0.01 for the second quarter of 2007 and $0.01 for the first quarter of 2008.

Working Capital and Liquidity

As at June 30, 2008, current assets were $12,442,864, including cash of $11,481,350. Against current liabilities of $702,043, this results in net working capital of $11,740,821, compared to current assets of $10,647,564 and net working capital of $10,373,864 at March 31, 2008. The improved working capital position is a result of completion of the June private placement, and is partially offset by planned acceleration of expenditures on the Saskatoon plant.

Construction Update

BioExx is pleased to report that it remains on schedule to commence production at its 40,000 metric tonne per year canola processing facility in January 2009. The facility will be started in three separate phases including crushing, extraction, and protein separation. Each phase is expected to begin approximately 60 days following the prior phase, leading to full capacity operation around mid-2009.

BioExx has concentrated on ordering all of its long lead time equipment well in advance and is currently in negotiation with contractors for the installation of the equipment. The 44,000 square foot building is also on schedule with the first phase of occupancy expected in October 2008.

Recruiting of plant personnel has also commenced with the identification of candidates for several of the key positions. The facility will employ approximately 20 people and most are expected to be hired before the end of 2008.

"Our team has put forth a tremendous effort to maintain our intended cost budgets and timelines, while at the same time planning for all foreseeable contingencies," said Chris Carl. "We respect that many companies in western Canada have incurred cost and schedule overruns due to the high economic activity in that region, but at present BioExx is pleased to report that it remains on plan and sees little risk of any significant delays or overruns."

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 crop scarcity.

BioExx is currently constructing its first commercial specialty extraction facility for processing canola to produce protein concentrates for the aquaculture and specialty animal feed markets, as well as canola oil and meal. The facility, located in Saskatoon, Saskatchewan, is expected to begin commercial operation in early 2009. 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, the demand for BioExx's products, the availability of funding, 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 the BioExx'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.

Contacts:
Bio-Extraction Inc.
Chris Schnarr
Chief Financial Officer
(416) 588-4442 x111
Email: [email protected]
Website: www.bioexx.com

Investor Relations:
The Equicom Group
Glen Williams
(416) 815-0700, x272
Email: [email protected]

Brisco Capital Partners
Scott Koyich
President
(403) 262-9888
Email: [email protected]

SOURCE: Bio-Extraction Inc.

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