Xylitol Canada Completes Technology Demonstration of Xylose Production Process

Xylitol Canada Inc. ("Xylitol Canada", or the "Company") (TSX VENTURE:XYL) is
pleased to announce that the Company has completed pilot demonstration of its
cellulosic xylose process. The successful three month campaign proved out
critical process and economic metrics needed to advance into commercial scale
detailed engineering.


Xylose is a simple sugar used for the production of xylitol. Since 2008, Xylitol
Canada has been working closely with leaders in the biochemical industry to
develop a process that can produce the most environmentally sustainable xylose
and xylitol available. The process minimizes waste by eliminating the need for
harsh acids and other chemicals that are used to produce imported xylitol. Using
a combination of steam and enzymes, Xylitol Canada is able to produce xylose
with significantly less waste. The Company's xylose commercialization strategy
focuses on strategic 'biorefinery' partnerships. In biorefineries, biomass waste
from one company's production is the feedstock for another's production. Xylitol
Canada's waste can be used to produce higher value biochemicals and
transportation fuels.


The recently completed trial builds on previously completed pilot scale work by
integrating the Xylitol Canada process from end-to-end in a single facility.
Representative aspen hardwood was used as feedstock. Trial results were
consistent with laboratory experiments, supporting the technical feasibility of
process scale-up. The Company's model analysis demonstrated potentially
attractive investment returns and generally supports moving forward with
engineering development of a commercial scale facility. A commercial facility is
being designed to produce up to 10,000 tonnes of xylose per year from
sustainably harvested North American hardwood.


Mark Turner, Director of Technology, recognized these results as critical in
supporting the growing demand for North American xylitol. "From a commercial
standpoint, this testing milestone is significant to our goal of becoming the
low cost leader in North American made xylitol. What this means, very simply, is
that our technology works at the current testing scale, and we now have a
demonstrated basis to pursue commercialization of our process. Our raw materials
are inexpensive, abundant, and renewable. We believe the economics and our
demonstrated process can allow us to compete globally with a high quality,
domestically produced xylitol."


Andrew Reid, President and CEO of Xylitol Canada, observed that the trials have
been in development since 2008, and represent a significant milestone for the
Company. "By completing these trials, we have confirmed our position as a leader
in identifying sustainable new sources of xylitol in North America. These types
of technology advances and partnerships are a necessary step that will allow us
to competitively promote North American xylitol for domestic consumers. We are
proud of the significant progress we've made over the last few years, and are
excited to continue our pursuit to become a leading producer of North American
xylitol."


About Xylitol Canada Inc.

Xylitol Canada markets xylitol and xylitol based-products and is focused on
becoming a major low-cost manufacturer of xylitol and related products, serving
the global market from operations in North America.


Xylitol Canada's business strategy is to leverage novel proprietary technology
and processes to become North America's premier manufacturer of low cost, high
quality xylitol from readily available environmentally-sustainable biomass.
Xylitol is an all-natural sweetener which is marketed globally including Canada
and the United States and is accepted by the American Food and Drug
Administration, the World Health Organization and the American Dental
Association. Xylitol contains 75% less carbohydrates and 40% less calories than
sugar, has a myriad of oral health benefits including the prevention of tooth
decay and is safe for diabetics. To date, wider spread use of xylitol has been
limited by the lack of a reliable, low cost, high quality supplier.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Xylitol Canada Inc.
Andrew Reid
President and CEO
[phone]
[e-mail]


For all investor relations inquiries, please contact:
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