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June 10, 2011 KELOWNA, BC — Lexaria Corp. (the "Company" or "Lexaria") (LXRP-OTCBB) provides the following update related to operations, oil production at Belmont Lake, and drilling activity. Lexaria is pleased to report that after a temporary interruption of only 17 days due to the unprecedented flooding of the Mississippi River, oil production from the Belmont Lake oil field resumed on June 3 and is continuing normally at this time. Prior to 2011, the highest ever-recorded water level at the Natchez monitoring station was 58.04 feet. Lexaria and its operating partners designed the Belmont Lake oil field production and gathering system to be able to operate up to this highest-ever water level. Lexaria is pleased to report that its production system operated at even more extreme flood conditions than this, and that production was in fact only interrupted when the local paved road was temporarily under water. This prevented tanker trucks from removing oil from the tanks of our production facility, which eventually filled with oil. The river eventually crested near the 62-foot level and has now receded to under 55 feet and is currently dropping at the rate of more than 2 feet per week. Unless the river rises unexpectedly in the days to come, Lexaria expects the oil production to continue. Lexaria is very pleased to have weathered this record-setting flooding with only such a modest interruption in production and notes that its production system has now passed some of the harshest natural conditions that are likely to ever be encountered in the area. Lexaria also reports that the earlier-announced Tuscaloosa exploration well USA 1-27 in which the Company had acquired a 5% interest, did not encounter the expected primary Tuscaloosa sands that were targeted. Although secondary Tuscaloosa sands were encountered, they were inconclusive and as a result a decision was reached to plug and abandon that well. Lexaria had pre-funded the costs of drilling this exploration well and thus does not anticipate any additional significant monetary burden. About Lexaria Corp. To learn more about Lexaria Corp., visit www.lexariaenergy.com On behalf of the board Mr. Chris Bunka, President Contact: Forward-looking Statements This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements which are not historical facts are forward-looking statements. The Company makes forward-looking public statements concerning its expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, including statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors but they include and are not limited to the existence of underground deposits of commercial quantities of oil and gas; cessation or delays in exploration because of mechanical, weather, operating, financial or other problems; capital expenditures that are higher than anticipated; or exploration opportunities being fewer than currently anticipated. There is no assurance the Company will have sufficient funds to drill additional wells, or to complete acquisitions or other business transactions. Such forward looking statements also include estimated cash flows, revenue and current and/or future rates of production of oil and natural gas, which can and will fluctuate for a variety of reasons; oil and gas reserve quantities produced by third parties; and intentions to participate in future exploration drilling. Adverse weather conditions can delay operations, impact production, and cause reductions in revenue. The Company may not have sufficient expertise to thoroughly exploit its oil and gas properties. The Company may not have sufficient funding to thoroughly explore, drill or develop its properties. Access to capital, or lack thereof, is a major risk. Current oil and gas production rates may not be sustainable and targeted production rates may not occur. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors which may be identified from time to time in the Company's public announcements and filings. The CNSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |