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Press release from CNW Group

Legumex Walker Announces Commencement of Production and First Sale and Shipment by Pacific Coast Canola Facility

Tuesday, January 08, 2013

Legumex Walker Announces Commencement of Production and First Sale and Shipment by Pacific Coast Canola Facility07:00 EST Tuesday, January 08, 2013- PCC Now Focused on Ramping Up Production to Full Capacity -WINNIPEG, Jan. 8, 2013 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today announced the Pacific Coast Canola (PCC) oilseed processing facility in Warden, Washington commenced production and completed its first sale and shipment of canola oil and meal during the final week of December 2012."We are thrilled to have the PCC facility in service producing super-degummed expeller-pressed canola oil and canola meal so quickly, and ahead of schedule," said Joel Horn, President and Chief Executive Officer, Legumex Walker Inc.  "We were able to move from commissioning of the core processing equipment to production and shipping of super degummed oil faster than anticipated.  Moreover, we are achieving continuous throughput levels well in excess of our initial targets for the startup period and the quality of the initial oil we are producing is better than expected at this stage.  We are now focused on ramping up production to our capacity to crush 1,100 metric tonnes (MT) per day of canola seed which will yield approximately 400 MT per day of refined, bleached and deodorized oil - the highest grade of canola oil - which we expect to achieve in the first half of this year."Mr. Horn added, "The addition of the canola processing is a transformational milestone in the evolution of our Company, significantly increasing the scale of our operations and further diversifying our business into higher margin products.  We are confident in the long-term fundamentals of the canola oil market.  With our new facility in service, we have a tremendous asset, backed by an exceptional management and operations team, to capitalize on the expected growth in demand for canola oil, as well as our unique advantage as the first commercial scale canola processing operation west of the Rocky Mountains.""The operating team at PCC may have set a new record for the amount of time to transition from commissioning to production," said Greg Waranica, Sales Manager Oils & Fats for Crown Iron Works Company, the world's leading oilseed processing technology firm and the provider of the Preparation, Pressing and Extraction processes. "They were able to produce salable oil and meal in 36 hours from the time canola starting running through the expellers.  We are very impressed with the quality of the facility and team."Demand for canola oil is expected to grow significantly over the long term as food processors respond to consumer preferences for healthier oils and government bans on trans fat oils.  Growth is expected to be especially pronounced in the United States, where canola oil comprises just 10% of the edible oil market compared to 70% in Canada.  From 2005 to 2011, growth in canola oil consumption in the U.S. grew more than 80%."The completion of the PCC facility in Warden is a milestone for production agriculture in the Pacific Northwest," said, Matt Upmeyer, General Manager, Pacific Coast Canola, LLC.  "PCC is the only large-scale canola crusher in the region and provides a reliable terminal market for canola growers in the area.  The benefits of growing canola as a rotation crop are proven.  We are committed to helping growers maximize these benefits by providing a consistent market for their canola.  We look forward to working with grain dealers and their growers to increase canola acres in the area."About Pacific Coast Canola and the Pacific Coast Canola Processing FacilityPacific Coast Canola, LLC operates the first and only commercial-scale canola crushing operation west of the Rocky Mountains (located in Warden, Washington), which is well positioned to supply the expanding demand for canola products on the west coast of the United States.  With crush capacity of 1,100 MT of canola seed per day, the PCC facility produces high quality expeller-pressed canola oil and canola meal.  Warden is in the heart of a multi-state region that is ideal for canola production and well-served by rail and surface transportation routes.  The plant has a design output capacity of 142,500 MT (approximately 314,000 pounds) of canola oil and 227,000 MT of canola meal per year.Pacific Coast Canola is 85% owned by Legumex Walker and 15% by Glencore Grain Investment LLC.About Legumex Walker Inc.Legumex Walker is a growth-oriented processor and merchandiser of pulses (beans, lentils, peas and chickpeas), other special crops (sunflowers and flax) and canola products. The Company is one of the largest processors of pulses and other special crops in Canada.  Legumex Walker has 14 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, which operates the first and only commercial-scale canola oilseed processing facility West of the Rocky Mountains.Cautionary Note on Forward-looking StatementsThis press release contains certain forward-looking statements. Forward-looking statements include, but are not limited to, those with respect to the expected start of commercial production of the PCC Plant and projected plant capacity and output. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company (including its operating subsidiaries) to be materially different from any future results, performance or achievements expressed or implied by the forward looking statements. Such risks and uncertainties include, among others, risks related to the operation of the PCC Plant, product liabilities, environmental risks, regulations related to agricultural commodities, weather related risks, the demand for and availability of rail, port and other transportation services, the actual results of harvests, fluctuations in the price of crops, failure of plant, equipment or processes to operate as anticipated, accidents, labour disputes, risks relating to the integration of acquisitions, as well as those factors referred to in the section entitled "Risk Factors" in the Company's Management's Discussion and Analysis for the period ended September 30, 2012, which is available on SEDAR at www.sedar.com and which should be reviewed in conjunction with this document. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.  Although the Company believes the assumptions inherent in forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this press release. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.Image with caption: "Legumex Walker Inc. announced the Pacific Coast Canola oilseed processing facility in Warden, Washington has commenced production and completed its first sale and shipment of canola oil and meal. (CNW Group/Legumex Walker Inc.)". Image available at: http://photos.newswire.ca/images/download/20130108_C4436_PHOTO_EN_22331.jpgImage with caption: "Legumex Walker Inc. is focused on ramping up production at the Pacific Coast Canola facility to capacity of 1,100 metric tonnes (MT) per day of canola seed, which will yield approximately 400 MT per day of refined, bleached and deodorized oil - the highest grade of canola oil. (CNW Group/Legumex Walker Inc.)". Image available at: http://photos.newswire.ca/images/download/20130108_C4436_PHOTO_EN_22332.jpgImage with caption: "The Pacific Coast Canola facility, in Warden, Washington, is the first and only commercial-scale canola crushing operation west of the Rocky Mountains, and is well positioned to supply the expanding demand for canola products on the west coast of the United States. (CNW Group/Legumex Walker Inc.)". Image available at: http://photos.newswire.ca/images/download/20130108_C4436_PHOTO_EN_22333.jpgSOURCE: Legumex Walker Inc.For further information: At Legumex Walker Marin Landis Investor and Media Relations marinl@legumexwalker.com (206) 535‐2427 At TMX Equicom Lawrence Chamberlain Investor Relations lchamberlain@equicomgroup.com (416) 815-0700 ext. 257 Crystal Quast Media Relations (416) 815-0700 ext. 266