Mr. Johann Tergesen reports

BURCON REPORTS FISCAL 2015 SECOND QUARTER RESULTS

Burcon NutraScience Corp. has released results for the fiscal second quarter ended Sept. 30, 2014.

Second quarter fiscal 2015 operational highlights:

• The company advanced discussions with a select group of multinational food ingredient providers about a royalty or a joint operations agreement for Peazazz.
• Burcon's Winnipeg technical centre undertook Peazazz applications work and sample production in response to requests from potential commercialization partners.
• Burcon's exclusive manufacturing and marketing partner for Clarisoy, Archer Daniels Midland Company, facilitated Clarisoy development activities in the global food and beverage market while operating the world's first Clarisoy semi-works plant to produce samples of the Clarisoy soy protein line for market development purposes.
• Burcon filed two new patent applications and received a patent allowance, bringing the company's patent portfolio to 172 issued patents in various countries, including 55 in the United States, as well as more than 380 active patent applications, including 66 additional U.S. patent applications.

Management commentary

The second quarter of fiscal 2015 saw continued progress in ADM's commercial rollout of the Clarisoy line of proteins and advancements by Burcon in applications work and partnership discussions forthe company's Peazazz pea protein.

Discussions with potential partners for the production and marketing of Peazazz progressed well during the past quarter. The Peazazz semi-works plant continues to support these discussions and due diligence visits, applications work, and sample production. These partnership discussions will be a main area of focus for Burcon in the coming quarters as the company looks to their conclusion.

"The business opportunity for Peazazz has to match the scale of the multinational potential partners that we are dealing with. We are expecting Peazazz to play a major role in the plant protein ingredient market," said Johann Tergesen, president and chief operating officer.

ADM's acquisition of Wild Flavors GmbH for $3.1-billion (U.S.), the largest acquisition in company history, will now significantly expand ADM's specialty food ingredient offering. The combining of ADM's foods and wellness group and Wild Flavors operations will now form the core of ADM's fourth business unit, Wild Flavors & Specialty Ingredients. The unit will start financial reporting on Jan. 1, 2015, with Clarisoy now part of the Wild Flavors and Specialty Ingredients business unit.

A world leader in the protein business for over 20 years, ADM offers an extensive line of versatile protein ingredients in a variety of forms, including isolated soy proteins and soy protein concentrates. ADM's line of Clarisoy isolated soy proteins is the only line of transparent soy proteins and includes a range of products for both low and neutral pH applications. With the launch of Clarisoy 170 and with Clarisoy 180 under development, there are a total of six versions of Clarisoy soy protein in their current offering. Consumers worldwide are seeking great-tasting food and beverages that deliver nutritional benefits for their increasingly active lifestyles. The Clarisoy platform is designed to meet the global demand for nutritional beverages in a refreshing way.

"We continue to be impressed with the scale and the amount of work ADM has put into the Clarisoy rollout thus far," said Mr. Tergesen, president and COO. "There is a tremendous amount of ongoing formulation and applications work occurring between ADM and its customers utilizing the Clarisoy line of soy proteins."

Second quarter fiscal 2015 financial results (dollars in Canadian currency):

• Revenues totalled $24,000 in the second quarter, which was consistent with the prior quarter and the same year-ago period, and were derived mainly from deferred royalty payments from ADM for Clarisoy sales. The nominal revenues reflect the company's development phase status as it transitions to the commercial stage.
• Royalty revenues from the sale by ADM of Clarisoy as produced from its semi-works facility in Decatur, Ill., have been marginal. The main purpose of the semi-works plant has been to provide commercial samples for market development purposes and to facilitate other product development work.
• Second quarter net loss totalled $1.8-million or five cents per basic and diluted share, as compared with a net loss of $1.6-million or five cents per basic and diluted share in the same year-ago quarter.
• Research and development expenses totalled $620,000 in the second quarter, increasing from $589,000 in the same year-ago quarter, due mostly to higher plant operating costs and stock-based compensation expense.
• General and administrative expenses in the second quarter increased to $1.2-million from $1.1-million in the year-ago quarter. The increase in G&A expenses for the quarter is due mainly to the recording of $359,000 as financing expense as fair value for warrants issued to the guarantors of the rights offering, which were approved at the annual general meeting. This was offset by a decrease of $178,000 in patent legal fees and expenses, due mainly from Burcon having abandoned certain non-core canola patents last year that it deemed to be unessential for the purposes of achieving its objectives in countries not in the United States.

At Sept. 30, 2014, cash totalled $4.2-million compared with $1.4-million at March 31, 2014. Management believes it has sufficient resources to finance its expected level of operations and working capital requirements until at least July, 2015. This estimate does not take into account potential proceeds from outstanding convertible securities, anticipated increases in royalty revenues from the sale of Clarisoy, or any other potential revenue from product sales or licensing.

The company's complete financial statements, along with management's more detailed discussion and analysis, are available from the company's investors section on the Burcon website or from SEDAR.

Conference call

Burcon will host a conference call later today, Nov. 13, 2014. Company management will host the presentation, followed by a question-and-answer period.

                      CONFERENCE CALL

Date                               Nov. 13, 2014                    
Time                               5 p.m. Eastern Time (2 p.m. Pacific Time)
Dial-in (toll/international)       1-719-325-2144                                 
Toll-free dial-in (North America)  1-888-539-3612                                 
Conference ID                      2609583                                        

A replay of the call will be available after 8 p.m. Eastern Time on the same day through Dec. 13, 2014.

                     REPLAY

Replay dial-in (toll/international)  1-858-384-5517
Toll-free dial-in (North America)    1-877-870-5176
Replay conference ID                 2609583       

A transcript of the call will be available after Nov. 17, 2014.

                                                        
      CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS  
                               (prepared in Canadian dollars)   
                                                          
                                                 Three months ended          Six months ended        
                                                      Sept. 30,                  Sept. 30,            
                                                  2014         2013         2014         2013
Revenue
Royalty income                                 $23,658      $23,458      $48,949      $47,358
Expenses
General and administrative                   1,242,636    1,056,041    2,083,679    2,065,877
Research and development                       619,718      589,309    1,224,155    1,206,585
Total expenses                               1,862,354    1,645,350    3,307,834    3,272,462
(Loss) from operations                      (1,838,696)  (1,621,892)  (3,258,885)  (3,225,104)
Interest and other income                       19,672       18,252       46,500       40,634
(Loss) and comprehensive (loss)
for the period                              (1,819,024)  (1,603,640)  (3,212,385)  (3,184,470)
Basic and diluted (loss) per share               (0.05)       (0.05)       (0.10)       (0.10)   

We seek Safe Harbor.