BioExx Specialty Proteins Ltd. announced earnings results for the third quarter ended September 30, 2012. During the quarter, the Company generated CAD Nil revenue from canola oil and canola meal sales at its Saskatoon plant, versus revenue of CAD 930,239 in third quarter of 2011 (including a loss on derivative instruments of CAD 14,682; second quarter of 2012 CAD Nil), and CAD 136,008 in second quarter of 2012. During third quarter of 2012, the company ran its crush operations only as required to support the extensive piloting activity required for the completion of the Company's detailed engineering scale-up mandate.

This resulted in low processing volumes and CAD Nil revenue earned during the quarter. Further, as previously discussed, to conserve capital and exercise appropriate fiscal discipline, the Company had scaled back plant operations generally, earlier in the year. The net loss for the quarter was CAD 4,088,359, versus CAD 5,750,693 in third quarter of 2011 and CAD 3,856,763 in second quarter of 2012.

The significant variance in losses compared to third quarter of 2011 and second quarter of 2012 reflects the cumulative impact of the company's ongoing cost reduction efforts and reduced scale of interim operations, which is partially offset by the aforementioned Impairment and other income (expenses) on the assets disposed of during the quarter. BioExx's net cash flow used in operating activities during the quarter was CAD 1,535,617, compared to CAD 3,318,871 in third quarter of 2011. The differences primarily reflect the different operating environments and cost reduction efforts in the respective quarters.

The capital spending in third quarter of 2012 is mainly a result of property, plant and equipment expenditures from 2011 and first quarter of 2012 which were paid during the quarter. In addition, capital spending on intangible assets was CAD 354,175, as a result of the aforementioned capitalization of plant expenditures which directly related to the piloting activity as a component of Development Costs, in the amount of CAD 209,224. This compares to third quarter of 2011 at CAD 3,648,564, with capital spending much higher at CAD 3,452,381.