BioExx Receives Project Funding Totalling $635,500

Bio-Extraction Inc. (TSX VENTURE:BXI)("BioExx") is pleased to announce that it
has secured a further $635,000 of funding from two Saskatchewan-based
organizations, for use towards the further development of its specialty canola
protein products.


The first is a $335,500 non-repayable grant from Agriculture Council of
Saskatchewan Inc. ("ACS"), under the Agriculture and Agri-Food Canada funded
Advancing Canadian Agriculture and Agri-Food Saskatchewan (ACAAFS) Program, for
use towards the further development of BioExx canola Protein Super-Concentrate
products which BioExx expects to bring to market in early 2010.


The second is a $300,000 deferred-payment loan from Ag-West Bio Inc. to assist
with ongoing development costs for canola protein Super-Concentrates and
Isolates, including human food-uses. The loan bears interest at prime plus 2%,
capped at 10%. No payments of interest or principal are required on the loan
until 2012, and will then extend for three years. BioExx will pay a royalty to
Ag-West of 0.5% of revenue for 5 years, beginning in 2010, with a proviso that
total payments to AgWest through 2015 on account of principal, interest, and
royalties will not exceed $600,000.


"We are very pleased to be recognized as a part of the very close knit
agricultural product development community in Saskatoon. The team at Ag-West has
been particularly supportive in assisting us from the beginning," says BioExx
CEO, Chris Carl. "We have invested, and will continue to invest, significantly
in R&D across the very broad and capable infrastructure in Saskatchewan, and we
look forward to utilizing these funds to further extend our working relationship
with the world class scientists at POS Pilot Plant Systems, Feeds Innovation
Institute and the Prairie Swine Centre. For us, this is an important recognition
of the unique and commercially valuable work that BioExx has engaged in. We
intend to return these funds, many times over, throughout the agri-business
value chain."


About ACAAFS

The Advancing Canadian Agriculture and Agri-Food (ACAAF) program is a five-year,
$240 million program aimed at positioning Canada's agriculture and agri-food
sector at the leading edge to seize new opportunities. Funding for the ACAAF
program is provided by Agriculture and Agri-Food Canada (AAFC). Regionally, the
Agriculture Council of Saskatchewan receives $3.7 million annually to deliver
Saskatchewan's ACAAF program. The ACAAFS program is delivered under three
pillars: Pillar One is Industry-led Solutions to Emerging Issues; Pillar Two is
Capturing Market Opportunities by Advancing Research Results; and Pillar Three
is Sharing Information to Advance the Sector. ACAAFS supports innovative
agriculture related projects that enable a sustainable, well-diversified economy
for the benefit of the industry and for the people of Saskatchewan and Canada.


About Ag-West

Ag-West Bio is a membership-based organization at the forefront of
Saskatchewan's bioeconomy. They work as a catalyst for partnerships and industry
growth through investments, aiding strategic alliances, providing regulatory
support and communications. Membership includes over 80 corporations,
associations and individuals representing natural health products and functional
foods, bioproducts and bioprocesses, and agricultural biotechnology sectors.
Ag-West Bio's mission is to lead and support the development of an economically
viable biosciences cluster in Saskatchewan in a way that will translate into
significant economic benefits and spin-offs to the Saskatchewan and Canadian
economy. Ag-West Bio Inc. will expedite the commercialization of value-added
products by linking knowledge and investment with science and enterprise in the
development of products that satisfy market needs.


Saskatoon Canola Processing Facility Update

Building Construction

Construction of the 44,000 square foot building (see website for pictures) is
proceeding on schedule and on budget with initial occupancy of the building by
BioExx due in November. Shortly following occupancy, BioExx will begin receiving
processing equipment. The company is well-funded and looks forward to completing
installation and commissioning of equipment, to commence production on schedule
in January, 2009.


Phased Start-Up to Commence mid-January 2009

The facility will be started in three phases including seed processing in
mid-January, oil extraction in March and protein concentration in April or May.
BioExx has a unique advantage over most plant start-ups in that 100% of the
products produced at each phase are readily saleable, and if current industry
prices and margins are maintained, sales may result in positive cash flow being
generated during preliminary phases.


Phase I involves seed preparation and pressing; taking canola seed feedstock and
pressing it to remove up to 85% of the oil. This produces a crude, expeller
grade oil, and a high oil content meal (or "cake"). Both of these products are
immediately saleable into BioExx markets as and when produced. Phase I is based
on standard and well accepted equipment and processes, which have been widely
used globally for decades. During this phase, a limited amount of cake will be
further processed to produce Protein Concentrates utilizing the BioExx
Intermediate Size Plant. Phase I should be operating at more than 80% capacity
before Phase II commences.


Phase II is the extraction of the remaining oil from the Phase I press cake,
based on the patented BioExx low-temperature oil extraction technology. The
output from this phase will be a high quality Super Degummed canola oil, as well
as a high quality, high-solubility protein canola meal. Current market prices
and expected operating costs suggest that BioExx can earn a significant profit
at the plant level based just on the sale of products derived from this phase.


Phase III is the separation of protein from the Phase II meal, to immediately
produce high quality Protein Concentrates for sale into specialty feed markets,
followed by a goal to introduce Super-Concentrates not later than early 2010 and
then by Protein Isolates not later than early 2011. BioExx has a patent
application pending for its unique method of processing oilseeds and then
producing these specialty proteins, as well as the unique and high-value protein
products that result.


This phased ramp-up plan maintains the target to be operating at or near full
capacity around mid-year 2009, while at the same time substantially reducing the
technical and start-up risks typically associated with new technology.


Recruiting of Key Personnel

BioExx has also recently successfully completed the recruiting for two important
positions at its Saskatoon Plant. The role of Production and Maintenance
Supervisor was filled by an individual with more than 10 years of production
experience in the canola seed processing industry including a large scale plant
commissioning and joins BioExx from one of the world's largest oilseed
processing companies. The role of Quality Assurance Supervisor has been filled
by an individual with over 5 years experience in Quality Control for one of
Canada's largest food processing companies. Both individuals are bright, highly
motivated individuals who join BioExx from existing roles at top tier companies
in the industry. This gives BioExx reason to be optimistic about the hiring of
the balance of its staff, which is slated to occur over the next twelve weeks.


Economic Stability of Profit Margins

BioExx is pleased to note that crush margins have remained healthy in the face
of the steep general downturn in commodity prices. Conceptually, crush margins
are a representation of the per tonne excess of output revenues (from oil and
meal sales) less input costs (from seed purchases). Since these three items tend
to change together, even in a declining commodity price market, margins can
remain strong. The same can also hold true in strong commodity markets. BioExx
believes that this provides the company with better earnings stability and
insulation from the economic impact of constantly changing commodity prices by
offering a long-term economic profile with less volatile margins than those of
the underlying commodities. This stability is significantly enhanced when
coupled with the substantial upside derived from the BioExx specialty proteins
business opportunity.


BioExx to process non-GMO Seed

BioExx has worked with its contracted seed supplier, Viterra Inc. on a plan to
have the Saskatoon plant utilize only seed varieties of the canola family that
are not genetically modified. While no claim is made that these seeds are in any
way superior to regular canola seeds, given the global perspective that BioExx
has used to develop its business plan, and the desire to export its products
into the highest value markets available, utilizing non-GMO seeds opens a
greater number of market opportunities for the company and in some cases may
also command a premium price.


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 by January 2009. To find out more about Bio-Extraction Inc.
(TSX VENTURE:BXI), please visit our website at 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' 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.