Mr. Ross Orr reports

BACTECH ENGAGES ANALYTICA SECURITIES TO RAISE $US20M IN GREEN/SOCIAL BONDS FOR THE TENGUEL PROJECT

Bactech Environmental Corp. has taken a significant step forward in the company's commitment to providing innovative ecofriendly bioleaching and remediation solutions for precious metal and critical mineral recovery.

Bactech has engaged Analytica Securities, a reputable Quito-based securities firm known for its expertise in macroeconomic and financial consulting, corporate finance, mergers and acquisitions, debt structuring, stock brokerage, portfolio management, and trust business management. Analytica Securities will play a crucial role in marketing Bactech's proposed $20-million (U.S.) green/social bond offering.

The primary purpose of this bond offering is to raise funds for the construction and program development of Bactech's bioleaching facility in Tenguel, Ecuador. This facility will focus on the treatment of gold and silver containing high levels of arsenic, demonstrating the company's continued dedication to sustainable practices in the mining industry.

In line with Bactech's commitment to make a positive impact on both the environment and local communities, the proceeds from the bond offering will be allocated to four eligible project investment areas. These include pollution prevention and control, sustainable water and waste water management, socioeconomic advancement and empowerment, and the generation of decent and inclusive employment opportunities.

To ensure transparency and adherence to global best practices, Bactech has recently launched the company's sustainable bond framework for issuing green and social bonds. This framework aligns with the International Capital Market Association's (ICMA) green bond principles (GBP) 2021 and social bond principles (SBP) 2023. Additionally, the company is proud to have received an independent second party opinion (SPO) from Moody's Investors Service, awarding Bactech a sustainability quality score of SQS2 (very good), recognizing the company's significant contribution to sustainability.

"We are excited to pursue this financing opportunity with the support of Analytica, and we estimate that $16-million (U.S.) of the $20-million (U.S.) raised will be allocated to the capital portion of the bioleaching facility construction," said Ross Orr, president and chief executive officer of Bactech. "The remaining $4-million (U.S.) will be utilized to finance the purchase of concentrates from the local miners, reinforcing our commitment to supporting the local economy."

Furthermore, Bactech is pleased to report that the company is progressing well with its consultation permit and anticipates receiving it shortly. Securing this permit will signify a significant milestone for the company, as it ensures Bactech has fulfilled all necessary permits required for building the plant.

Bactech remains committed to achieving the company's environmental and social objectives while delivering long-term value to Bactech's shareholders and stakeholders. Bactech believes that this green/social bond offering is a significant step in the right direction.

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 NPV (net present value with 5-per-cent discount rate) of $60.7-million;
• Pretax IRR (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.

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