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Press release from CNW Group

Legumex Walker's Pacific Coast Canola Expands Agreement with CHS to Include Canola Oil Marketing

Tuesday, August 21, 2012

Legumex Walker's Pacific Coast Canola Expands Agreement with CHS to Include Canola Oil Marketing07:00 EDT Tuesday, August 21, 2012- PCC Will Benefit from Access to CHS' Extensive Relationships with the World's Largest Food Processors -WINNIPEG, Aug. 21, 2012 /CNW/ - Legumex Walker Inc. (TSX: LWP), today announced that its 85%-owned subsidiary, Pacific Coast Canola (PCC), has expanded its previously existing agreement with CHS Inc., for the procurement of canola oilseed and off-take of canola meal to include the sales of canola oil products produced at the PCC canola processing facility in Warden, Washington.  The facility, which is the first commercial-scale canola processing operation west of the Rocky Mountains and the largest expeller pressed canola processing facility in North America, is scheduled to commence start-up operations in the first quarter of 2013."Through this expanded agreement, PCC will have access to some of the world's largest food processors and distributors to which CHS currently markets a variety of soy-based oils, said Joel Horn, president and chief executive officer, Legumex Walker Inc. "PCC's marketing personnel will work side-by-side with CHS's existing merchandising team to market and sell our expeller-pressed canola oil to CHS customers.  Moreover, with our CHS agreement now covering canola oil sales in addition to oilseed procurement and canola meal sales, we will have enhanced visibility into the overall edible oil market, which should strengthen our ability to more effectively manage our positions.""We have seen a marked increase in the demand for canola oil from our customer base as food processors respond to changing consumer preferences and government bans on trans fat oils," said Gary Anderson, senior vice president, Processing and Food Ingredients, CHS Inc.  "Building on the strength of our existing partnership, the expansion of our agreement with PCC allows us to now offer canola oil alongside our soy-based oils to meet our customers' refined oil needs.  We look forward to working with the PCC team to capitalize on what is expected to be very healthy growth in the use of canola oil going forward."About CHS Inc.  CHS Inc. is a leading global agribusiness owned by farmers, ranchers and cooperatives across the United States. Diversified in energy, grains and foods, CHS is committed to helping its customers, farmer-owners and other stakeholders grow their businesses through its domestic and global operations.CHS offers a broad portfolio of high-quality soy products, including soy oils and soy flour for both food and industrial applications, PlastiSoy™ expoxized oils, soy isolates and soy concentrates.About Pacific Coast Canola and the Pacific Coast Canola Crushing FacilityPacific Coast Canola is constructing its first canola processing plant in Warden, WA with a nominal capacity to crush 1,100 metric tonnes (MT) of canola seed per day. The facility will produce refined, bleached and deodorized expeller-pressed canola oil and high-quality canola meal and will be the first commercial-scale canola processing operation west of the Rockies.  PCC is well positioned to supply the expanding demand for canola products on the west coast of the United States.  Warden is in the heart of a multi-state region that is ideal for canola production and is well-served by rail and surface transportation routes.  The plant has a design output capacity of 142,500 MT (approximately 314,000,000 pounds) of canola oil and 227,000 MT of canola meal per year.Pacific Coast Canola is 85 percent owned by Legumex Walker and 15 percent by Glencore Grain Investment LLC.About Legumex Walker Inc.Legumex Walker is a growth-oriented processor and merchandiser of pulses (lentils, peas, beans and chickpeas), other special crops and canola products. The Company is one of the largest processors of pulses and other special crops in Canada with 11 processing facilities strategically located in key growing regions in the Canadian Prairie Provinces, the American Midwest, and China, a global sales, logistics, and distribution platform and access to multimodal transportation capabilities. In addition the Company has an 85 percent interest in Pacific Coast Canola, LLC, a company that is constructing a canola oilseed processing facility in Washington State.This press release contains "forward-looking information" within the meaning of Canadian securities laws, which may include, but are not limited to statements relating to the construction, capacity, operation and staffing of the Company's majority-owned canola crushing facility, projected canola oil demand; and marketing of canola oil and canola meal. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including timing and cost overrun risks associated with the construction of the PCC crushing facility; fluctuations in demand for canola oil and canola meal and those set out in the annual information form of Legumex Walker dated March 28, 2012 available on sedar.com. The Company does not undertake to update forward-looking statements or forward-looking information, except as required bylaw.SOURCE: Legumex Walker Inc.For further information: INVESTOR & MEDIA RELATIONS Marin Landis Manager of Investor Relations - Legumex Walker Inc. marinl@legumexwalker.com (206) 535-2427 Lawrence Chamberlain TMX Equicom lchamberlain@equicomgroup.com (416) 815-0700 ext. 257