AGRI-FOOD EQUITY FUND INVESTS IN EXL MILLING INC.

Released on August 14, 1997

Agriculture and Food Minister Eric Upshall today announced that the

Agri-Food Equity Fund will invest $750,000 in EXL Milling Inc. of

Lloydminster to assist in financing plant construction and equipment

purchases.



EXL Milling is a new company that uses state-of-the-art canola milling

technology to process low-grade canola and canola meal into a high

quality livestock feed. EXL plans to annually produce a minimum of

10,000 tonnes of product, which will be sold into domestic and

international markets.



"We're very pleased with this investment which will allow EXL Milling

to expand its production of high quality livestock feed, creating a

market for this grade of canola," Upshall said. "This is just another

example of how value-added initiatives can generate valuable new

markets for producer commodities."



EXL President Sydney Palmer said he is pleased with the progress of

the project, which began as a pilot project approximately four years

ago.

"We are very pleased with the success we've had in solving

production difficulties, but we are especially pleased with the

market response to our product - MegaPro. MegaPro has been very

well received across Canada and throughout much of the United

States," Palmer said. "We're also very excited about the unique

nature of this project and our investment alliance with the

Agri-Food Equity Fund. Our feed product has a distinct identity,

and we're pleased to be able to produce it from canola provided

by local producers."



"The Government of Saskatchewan is a firm believer in developing

diversified agri-food businesses in the province," Upshall said.

"The Agri-Food Equity Fund is an important player because it

creates sensible investment partnerships that contribute to the

expansion of the value-added sector of agriculture."



The Agri-Food Equity Fund has made 12 investments in Saskatchewan

since the fund was established in 1994. Each investment carries

a maximum eight-year term. The Government of Saskatchewan has

committed $20 million over five years to expand the value-added

sector of the agriculture and food industry. Over $15 million

remains to be invested over the next four years. Revenues

generated from investments are returned to the fund for

reinvestment in further value-added opportunities.



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For more information, contact:



Paul Marciniak

Agri-Food Equity Fund

Agriculture and Food

Saskatoon

Phone: (306)933-6888





Sydney Palmer

EXL Milling Inc.

Lloydminster

Phone: (306)826-5534