Chemaphor Inc./Update on OxBC, Positive Results for Feed Additive in Animals; Pursuing Business Discussions

Chemaphor Inc. (TSX VENTURE: CFR) -

We are pleased to report significant progress in the development of our first product for non-pharmaceutical applications based on our oxidized carotenoid platform.

Recently completed studies have confirmed the potential of our OxBC product for use as a non-antibiotic, non-hormonal promoter of growth and feed conversion efficiency in livestock.

A pilot study carried out in young pigs on Chemaphor's behalf by Dr. Daniel Hurnik of the Atlantic Veterinary College at the University of Prince Edward Island first demonstrated that a low amount of OxBC added to regular swine feed promotes growth of the animals and improves conversion of feed into body mass.

A subsequent collaborative study carried out under commercial conditions by major industrial companies in the animal health and feed supply businesses has shown OxBC provides statistically significant improvements in growth and feed conversion efficiency also in poultry.

Antibiotics used at subtherapeutic levels have, until recently, been used very widely in livestock animal feeds as promoters of growth and feed conversion efficiency. Concern at the increasing resistance to antibiotic treatments of infections in humans has led to pressure to reduce or eliminate their use in animal feeds and even to an outright ban this year in Europe.

As feed is the major cost of livestock food production, additives providing improvements in growth and feed conversion efficiency can lead to significant cost savings for the producer, as well as reduce the burden of waste on the environment. Presently, few, if any, commercially available substances exist that can serve as antibiotic replacements for this function.

In these studies OxBC was used at low levels in non-medicated diets, yet provided growth and feed conversion results comparable to antibiotic growth promoters. This validates our belief that using a more natural nutritional approach OxBC provides growth and feed conversion potential on a scale at least similar to current antibiotic additives used for the same purpose. The OxBC growth and feed conversion capabilities could be used in addition to antibiotics or as an alternative to antibiotics currently used mainly for growth promotion.

We believe that the current form of OxBC demonstrates strong characteristics for safety, efficacy and cost effectiveness required to become a commercially successful compound for improving growth and feed conversion. The animal feed additive test results provide a very solid foundation to bring this product to market and we already have seen interest with various industry leaders to pursue this potential through a partnership.

We are currently in discussions with major international and Canadian potential industrial partners to reach a business agreement to commercialize OxBC in the US, Canada and Europe as a non-antibiotic and non-hormonal feed additive for livestock.

It is our intention to provide a general update on all of our projects later this month along with our second quarter financial results.

About OxBC

Carotenoids are a family of approximately 600 highly-coloured compounds that are widely distributed throughout nature. These compounds are all highly susceptible to oxidation. In the oxidation process, the parent molecules are destroyed and a very large number of new compounds are formed. With the exception of just a few of these oxidation products, and vitamin A in particular, the biological functions of these products are unknown and have yet to be uncovered.

Indeed, we believe that many, if not most, of the biological activities of carotenoids flow from one of more of their oxidation products, and not from the parent compound itself. We have developed a proprietary product, OxBC, that comprises a mixture of oxidation products obtained directly via the spontaneous oxidation of beta-carotene. OxBC represents a cross-section of the spectrum of the numerous carotenoid oxidation products that occur naturally in the plant world. We are exploring and developing the wide potential of OxBC opportunities.

About Chemaphor

Chemaphor Inc. (www.chemaphor.com) uses its core expertise in organic chemistry to develop premium products for the animal health, skin care cosmetics, pharmaceutical and specialty chemical markets. The Company's focus is on two proprietary products, a non pharmaceutical product OxBC and a lead cancer drug compound OCL-1. Chemaphor's goal is to fully exploit its proprietary platform of carotenoid oxidation compounds by finding recognized partners to commercialize its products in multiple, large markets.

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