Mr. Ross Orr reports

BACTECH ENVIRONMENTAL PROVIDES CORPORATE UPDATE

Bactech Environmental Corp. has provided the following corporate update.

Financing

The company has closed a third tranche of its recent placement for $132,000. The financing includes the issuance of 1.65 million units consisting of one common share of Bactech and one common share purchase warrant. The warrant allows the holder to purchase an additional common share in the company at 12 cents for a period of two years from the closing.

Green bond certification

Further to the company's selection of Moody's to provide third party verification of Bactech as a qualified green bond issuer, Bactech confirms it has tendered all necessary documentation to Moody's with respect to the company's pursuits of green bond certification. As previously announced in its April 13, 2023, press release, the company has started the process to obtain the appropriate certification to be able to issue green bonds to finance its bioleach processing facility in Tenguel, Ecuador. Bactech, in concert with Analytica Securities in Quito, Ecuador, intends to raise up to $20-million (U.S.) in green bond financing.

Community consultation process update

Bactech also wishes to advise shareholders that the company has been notified that the government of Ecuador will officially begin the final review process on June 19, 2023. As previously communicated in its June 1, 2023, press release, this is the final major permit required to approve the company's planned project in Tenguel, Ecuador. Upon completion, the facility is expected to be the largest and most efficient bioleaching plant in South America using naturally occurring bacteria, harmless to both humans and the environment, to treat gold and base metal concentrates along with toxic tailings created through local mining operations. Bactech was granted its environmental impact study permit in September, 2022, further illustrating the government's commitment to the launch of this important project.

About the Tenguel-Ponce Enriquez bioleaching project

Bactech is planning to build a new owner-operated bioleaching facility in Tenguel, Ecuador, in a region where arsenic is associated with sulphide gold ore (arsenopyrite). The company's plan is to build a 50-tonne-per-day (tpd) bioleach plant capable of treating high gold/arsenic material. A 50 tpd plant, processing feed of 1.75 ounces of gold per tonne, similar to feeds available to the company from local miners, would produce approximately 31,000 ounces per year. Plant designs are modular and can be expanded without affecting continuing production. The total concentrate market in the Ponce Enriquez area is estimated to be between 200 and 250 tonnes per day, allowing for increased throughput potential with a larger plant. Bactech has signed an agreement with the government to build a phase 2 plant that would see the addition of 150 to 200 tpd of capacity capable of producing in excess of 100,000 ounces per annum.

Key economic highlights, assuming a base gold price at $1,600 per ounce:

• Pretax net present value (with 5-per-cent discount rate) of $60.7-million;
• Pretax internal rate of return of 57.9 per cent;
• Annual gold production of 30,900 ounces;
• Capital cost of $17-million;
• Bioleach operating cost of $212 per tonne;
• Pretax earnings prior to employee bonus of $10.9-million annually;
• Estimated local employee bonus pool of $1.64-million.

In total, there are over 100 small mines operating in the area. Bactech continues to investigate the prospects of establishing additional modern bioleaching facilities across other areas of Ecuador, Peru and Colombia. Where possible, the company will partner with national and local governments, non-governmental organizations (NGOs) and others to assist with the financing of these projects and ensure that they meet the company's high expectations not only for environmental standards, but also for the highest standards in all ESG (environmental, social, governance) considerations.

About Bactech Environmental Corp.

Bactech Environmental is a company that specializes in environmental technology. It uses a process called bioleaching to recover metals like gold, silver, cobalt, nickel and copper, while also safely removing harmful contaminants like arsenic. This process is ecofriendly and uses naturally occurring bacteria that are safe for both humans and the environment. By using its proprietary method of bioleaching, Bactech is able to neutralize toxic concentrates and tailings while also creating profitable opportunities. The company is publicly traded on several stock exchanges, including the Canadian Securities Exchange, OTCQB and the Frankfurt Stock Exchange.

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