Xylitol Canada Provides Update on Its Commercialization Efforts

Xylitol Canada Inc. (TSX VENTURE:XYL) ("Xylitol Canada") is pleased to provide
an update concerning its xylitol and xylose commercialization efforts. Xylitol
Canada is currently working with Mascoma Corporation ("Mascoma"), and these
efforts centre on a bio-refinery which Mascoma is seeking to build in Drayton
Valley, Alberta (the "Facility"). The planned Facility is expected to produce
cellulosic ethanol, bio-electricity, and a xylose feedstock for Xylitol Canada
to produce a commercial grade xylose for the production of xylitol. The project
is currently at the feasibility stage and both Xylitol Canada and Mascoma are
working to secure their required project financing. 


It is intended that the Facility will be located on the Drayton Valley Bio-Mile,
a municipally designated industrial area with a mandate to incubate and support
emerging bio-based technologies. A successful Facility would reduce the
environmental impact of xylose, cellulosic ethanol and other product extractions
compared to conventional processes. Xylitol Canada has been developing its
xylose production process since 2008 with a focus of producing xylose for the
North America xylitol market. Andrew Reid, President and CEO of Xylitol Canada
commented on the company's stated objective of becoming a vertically integrated
producer of xylitol and xylitol products. "For the past five years Xylitol
Canada has been working to develop the lowest-cost and highest-quality process
for xylose and xylitol production. We are moving forward on one of our core
objectives in providing our customers with the very best xylitol products at a
price that is competitive with sugar sweetened alternatives. We look forward to
continuing to work with our partners as we develop this opportunity."


In its annual report published in June 2013, Sustainable Development Technology
Canada ("SDTC") confirmed that it is supporting front end development work for
three projects through its NextGen Biofuels Fund. One of the approved projects
is the Drayton Valley Biorefinery. It should be noted however that significant
additional third party funding will be required to complete the project, and
significant milestones will need to be met in order to maintain SDTC involvement
and ensure the project's success. 


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 a 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.


Forward Looking Statements

This press release contains forward-looking statements. Often, but not always,
forward-looking statements can be identified by the use of words such as
"plans", "expects" or "does not expect", "is expected", "estimates", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will" be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors which may cause the actual results, performance or achievements of
Xylitol Canada to be materially different from any future anticipated results,
performance or achievements expressed or implied by the forward-looking
statements. Actual results and developments are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking statements
contained in this press release. Such forward-looking statements are based on a
number of assumptions which may prove to be incorrect, including, but not
limited to: the ability of Xylitol Canada to obtain necessary financing; the
development of and demand for xylitol products; production of a commercial scale
production facility; the economy generally; consumer interest in the services
and products of Xylitol Canada; competition; and anticipated and unanticipated
costs. While Xylitol Canada anticipates that subsequent events and developments
may cause its views to change, Xylitol Canada specifically disclaim any
obligation to update these forward-looking statements. These forward-looking
statements should not be relied upon as representing Xylitol Canada's views as
of any date subsequent to the date of this press release. Although the Xylitol
Canada has attempted to identify important factors that could cause actual
actions, events or results to differ materially from those described in
forward-looking statements, there may be other factors that cause actions,
events or results not to be as anticipated, estimated or intended. There can be
no assurance that forward-looking statements will prove to be accurate, as
actual results and future events could differ materially from those anticipated
in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. The factors identified above are not intended to
represent a complete list of the factors that could affect Xylitol Canada.
Additional factors are noted under "Risk Factors" Xylitol Canada's financial
statements and related management's discussion and analysis.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


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