Mr. Ross Orr reports

BACTECH PROVIDES FINANCING UPDATE

Bactech Environmental Corp. has received subscription agreements totalling $614,040 for the first tranche of its recently announced private placement of units in the company.

Each unit, priced at eight cents per unit, comprises one common share and one-half of a common share purchase warrant in the capital of the company. Each whole warrant will entitle the holder to acquire one additional common share in the capital of the company at a price of 12 cents for a period of two years from the date the units are issued. If during the exercise period of the warrants the company's shares trade at 20 cents per share or higher for a period of 10 consecutive trading days on the Canadian Securities Exchange, the company may provide notice in writing to the holders of the warrants that the expiry date will be accelerated 30 days from the date of providing such notice. Two insiders participated in the financing for a total of $32,000.

This initial closing will allow the company to meet its business obligations and basic working capital needs as it works toward closing the $20-million (U.S.) green/social bond.

A finder's fee of $38,243 was paid and 468,040 finder's warrants were issued as part of the capital raise. The finder's warrants have a two-year term, and a full warrant buys an additional common share at 12 cents.

About the Tenguel-Ponce Enriquez bioleaching project

Bactech plans to construct an owner-operated bioleaching facility in Tenguel, Ecuador, a region known for its association with arsenic in sulphide gold ore (arsenopyrite). The company intends to build a 50-tonne-per-day (tpd) bioleach plant capable of treating high gold/arsenic material. Such a plant, processing feed with 1.75 ounces of gold per tonne, similar to what local miners provide, would yield approximately 31,000 ounces per year. The modular plant designs allow for expansion without disrupting continuing production. Bactech has also signed an agreement with the government for a phase 2 plant that would add 150 to 200 tpd of capacity, producing more than 100,000 ounces per annum.

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

• Pretax NPV (net present value with a 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.

The area hosts over 100 small mines, and Bactech is actively exploring the possibility of establishing modern bioleaching facilities in other regions of Ecuador, Peru and Colombia. The company aims to collaborate with national and local governments, non-governmental organizations (NGOs), and other stakeholders to finance these projects and ensure adherence to high environmental and ESG (environmental, social and governance) standards.

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 Bactech's proprietary method of bioleaching, the company can neutralize toxic concentrates and tailings while also creating profitable opportunities. The company is publicly traded on several stock exchanges, including the CSE, OTCQB and Frankfurt Stock Exchange.

We seek Safe Harbor.