TORONTO, ONTARIO–(May 28, 2014) – Xylitol Canada Inc. (“Xylitol Canada“, or the “Company“) (TSX VENTURE:XYL) today announces that it has released its financial and operating results for the three months ended March 31, 2014. Highlights of the results include:

• For the three months ended March 31, 2014, sales increased by 97% to $2,170,624, compared to the three months ended March 31, 2013;
• For the three months ended March 31, 2014, gross profit increased by 33% to $498,665, compared to the three months ended March 31, 2013.

The Company continues to expand its customer base and to achieve significant quarter over quarter revenue growth. The growth is attributed to increased availability in many major grocery chains and Natural grocers throughout North America of the Xylaâ„¢ brand of North American xylitol and Xylaâ„¢ products. The Company continues to raise awareness of its Xylaâ„¢ North American brand of xylitol and Xylaâ„¢ products, which are all sweetened with the highest quality Xylaâ„¢ xylitol. The Company’s products do not use any artificial sweeteners and are all sugar free or no added sugar without forfeiting flavor or taste. The Company also recently launched its North American made xylitol oral care line. The full text of the Company’s unaudited consolidated financial statements for the three months ended March 31, 2014 and related management’s discussion and analysis can be found under its profile at: www.sedar.com.

APPOINTMENT OF NEW CFO

The Board is pleased to announce that Mr. Frank Iadipaolo has been appointed Chief Financial Officer (“CFO”). Mr. Iadipaolo has extensive financial management and corporate development experience gained with small to medium sized enterprises in diverse business sectors. He previously served as Chief Financial Officer for Biosign Technologies Inc., Senior Vice-President, Corporate Finance with a Toronto based boutique investment banking firm and Chief Financial Officer for Telesis North Communications Inc. and Microforum Inc. (both previously listed on the TSX). Mr. Iadipaolo has also acted in a senior advisory role for other private and publicly traded growth companies. He holds an honours degree in Commerce from the University of Windsor and is a member of the Chartered Professional Accountants of Ontario. The Board of Directors wishes to thank Kyle Appleby, who served as CFO since April, 2010, for his efforts during his tenure which included detailed oversight of the financial aspects of the Company. Mr. Appleby’s duties as CFO were completed with professionalism. He will assist in the transition and we wish him well in his future endeavours.

ABOUT XYLITOL CANADA INC.

Xylitol Canada markets xylitol and xylitol based-products and is focused on becoming a major low-cost manufacturer of xylitol and related products, serving the global market from operations in North America. Xylitol Canada’s business strategy is to leverage novel proprietary technology and processes to become North America’s premier manufacturer of low cost, high quality xylitol from readily available environmentally-sustainable biomass. Xylitol is a natural sweetener which is marketed globally including Canada and the United States and is accepted by the American Food and Drug Administration, the World Health Organization and the American Dental Association. Xylitol contains 75% less carbohydrates and 40% less calories than sugar, has a myriad of oral health benefits including the prevention of tooth decay and is safe for diabetics. To date, wider spread use of xylitol has been limited by the lack of a reliable, low cost, high quality supplier.

Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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