CZO Ceapro Inc

Ceapro Inc. (TSX VENTURE:CZO) As a follow-up to the general presentation made
during the Shareholders meeting held on June 11, 2014, ("Ceapro" or "the
Company") is pleased to provide a corporate update with respect to its
Pressurized Gas Expansion (PGX) drying technology recently in-licensed from the
University of Alberta.


This technology was originally of interest to Ceapro to enable the transition to
other sectors like nutraceuticals and pharmaceuticals which mostly require the
production of dry formulations for tablets and capsules presentations. First
experiments were conducted with Ceapro's value driver beta glucan currently
extracted from oat with the expectations that dry formulation of oat beta glucan
would provide several benefits for Ceapro's existing and new market potential. 


Benefits for the existing personal care market include being able to make
preservative free product, an increase in shelf life, and a 98% reduction in
shipping weights and associated greenhouse gasses by removing the water. A dry
formulation would also allow Ceapro to pursue the large nutraceutical and
functional food/drink markets where oat beta glucan has a well known health
claim for cholesterol reduction. Unfortunately current standard drying
technologies like spray drying or freeze drying are not feasible options for oat
beta glucan, as well as many other biopolymers. A new technology was then
needed, and that new technology is PGX.


Ceapro has been scaling up and refining the drying process to increase
efficiency and reduce costs since it began working with the technology in 2010.
All the equipment was designed and tested by Ceapro. In late 2013 Ceapro scaled
up the technology and achieved a flow rate in excess of 3 metric tonnes per day
with the potential to increase the rate to 5 metric tonnes per day. During the
scale up work, Ceapro was able to produce a dried product that was in excess of
90% purity and was able to prove the flexibility of this technology to produce
dried products of different morphologies including fine powders, granules,
micro-fibrils, and nano-scale aerogels. Ceapro was able to produce an optimum
dry formulation for the production of tablets and capsules according to
pharmaceutical standards. The stage is set for further pre-clinical studies. 


As a result of the success with the Ceapro beta glucan scaleup, a decision was
made to invest in a commercial drying skid which will be capable of handling all
of Ceapro's current oat beta glucan requirements as well as providing additional
capacity to seed new market opportunities and demonstrate the technology, at
commercial scale, on other biopolymers. 


MIT Impregnation Study

Ceapro recently commenced a technical study with the prestigious Boston based
Massachusetts Institute of Technology (MIT). The objective of that study being
to impregnate molecules onto its dry beta glucan. The rationale being that beta
glucan has been hypothesized to act as a delivery system and is based on
evidence that the PGX technology can allow impregnation of molecules as
previously demonstrated with the impregnation of beta-carotene into gum arabic. 


The first target molecule was CoQ Enzyme 10, a well known health ingredient. The
study was a success and proved that beta glucan could be well impregnated. While
the work has not included any molecular characterization or efficacy testing
yet, this study demonstrated the tremendous platform potential of the PGX
technology to allow Ceapro to develop new products with any number of carriers
and active molecules. With respect to beta glucan specifically, we can now look
at expanding the use of beta glucan as a delivery system for topical
applications given the demonstrated properties of beta glucan to deeply
penetrate the skin down to the derm level. Also, upon completion of
bioavaialability studies, oral combination of active ingredients impreganted
with beta glucan will be considered for time release applications. While this
work is still early stage, the technical success is an essential first step to
ensure we can make a product. With that in mind, further scientific and efficacy
studies will be conducted. "The results of this first impregnation study with
this enabling technology is very exciting and opens up many opportunities to
develop new products and superior formulations for the pharmaceutical and
nutraceutical sectors, in line with our stated goals", said Gilles Gagnon,
President and CEO of Ceapro.


Other Drying Tests

During 2014, the PGX platform was tested on other compounds to see how the
resulting products would work with the technology. The primary intent of this
test was to establish the broad application potential of PGX to effectively dry
challenging biopolymers and allow for particle morphologies that offered the
potential of enhanced performance. Two tests were conducted at Ceapro's lab on
materials provided by third parties and both tests proved highly successful. The
first one was conducted on chitosan, a well known compound used for wound
healing that is most commonly extracted from shellfish. The second test was
conducted on nano-crystalline cellulose (CNC), a product which is the focus of
much research and development by the forest industry. This CNC product has some
tremendous properties but faces drying challenges using current technologies
that limits the functionality of the dried product. The ability of PGX to make a
nano-particle aerogel product, something not possible with traditional spray
drying, may allow for this product to be commercialized with its full potential.


In summary, the ability of PGX to potentially work and add value for other
industries who face drying challenges with their biopolymers and biomaterials
allows for Ceapro to consider out licencing PGX to third parties and adds to the
tremendous potential upside of Ceapro.


Bio World Congress of Industrial Technology (BWC)

Dr. Bernhard Seifried from Ceapro presented the PGX technology at the BWC on May
14 2014 in Philadelphia. This is the largest conference in the world that
focuses on the rapidly growing bio-industrial sector that includes alternative
fuels, bio-based chemicals, and bio-materials. The presentation was well
attended and the technology and samples were of tremendous interest to several
multi-nationals who had needs for better performance materials and drying
solutions. It is anticipated that several of these meetings will lead to
mutually beneficial business opportunities for Ceapro as PGX appears to be able
to address certain unmet needs. We are most encouraged by the comments of a
representative of a large US based organization after the presentation, "This
technology is a winner".


Website Update

Because of the huge potential that PGX represents to Ceapro, we have added a
separate PGX section on our website which can be accessed at www.ceapro.com. We
encourage readers to review the information and fact sheet posted to learn more
about this game changing technology.


"We have a new manufacturing facility coming on stream, sales forecasts
suggesting record volumes, increased awareness of our flagship avenanthramides
products, and now the tremendous promise of PGX. This is an exciting time for
Ceapro's shareholders", added Mr. Gagnon.


About the Technology

This Technology was invented by Dr. Temelli from the Department of Agricultural,
Food & Nutritional Science of the University of Alberta along with Dr. Bernhard
Seifried, now Senior Researcher at Ceapro.


The technology is called "PGX Technology", a novel spray drying technique for
processing water-soluble biopolymers, including oat beta glucan, utilizing the
unique and tuneable properties of Pressurized Gas eXpanded liquids. PGX
Technology is a platform that can produce numerous morphologies of biopolymers
ranging from fine fibres to granular powder, which are highly water soluble and
could find commercial success in a wide range of industries including functional
foods, nutraceuticals, cosmeceuticals, and pharmaceutical products. This
technology operates at lower temperatures than conventional spray drying
allowing incorporation of thermosensitive bioactives as well.


About Ceapro Inc.

Ceapro Inc. is a Canadian growth-stage biotechnology company. Primary business
activities relate to the development and commercialization of active ingredients
for healthcare and cosmetic industries using proprietary technology and natural,
renewable resources. To learn more about Ceapro, visit www.ceapro.com. 


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


FOR FURTHER INFORMATION PLEASE CONTACT: 
Megan Lee, PhD, MBA
Director, Corporate Affairs
Planning & Development
780-917-8394

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