Mr. Ross Orr reports

BACTECH PROVIDES A FOLLOW-UP UPDATE ON SUDBURY PYRRHOTITE TAILINGS R&D PROJECT

Bactech Environmental Corp. has issued a follow-up update from its December press release on the pyrrhotite tailings bioleach initiative in Sudbury, Canada.

Mirarco Mining Innovation, led by Dr. Nadia Mykytczuk, has commissioned the bioleaching cascade reactor circuit. The Mirarco bioleaching team has completed two baseline campaigns to ensure that instrumentation, the solids suspensions, leaching kinetics and solid/liquid handling are operating as designed. Final refinements are under way and full-scale campaigns will be possible in the coming weeks. Dr. Mykytczuk is a member of Bactech's strategic advisory board.

As previously reported, Bactech is part of a consortium aiming to provide innovative solutions for remediating 80 million to 100 million tonnes of pyrrhotite tailings deposited in and around Sudbury, Canada. Pyrrhotite (Po) is a highly reactive iron sulphide mineral that reacts strongly when exposed to oxygen, releasing soluble acidic iron harmful to the environment. It also contains lower-grade nickel and cobalt values.

In addition to conducting the bioleach test work for pyrrhotite, considerable thought will be directed at planning for both the upstream (feed) and downstream process components. Up to 90 per cent of pyrrhotite is made up of iron (approximately 55 per cent) and sulphur (approximately 35 per cent). The focus of the test work will be to determine whether there exist formulations for both elements that could be commercially sold as a byproduct to enhance the overall economics of the project.

Dr. Mykytczuk outlined: "Our team is excited to have the bioleaching piloting circuit up and running. We know that Bactech is eager to pilot their process. These multipartner collaborative projects, like this one funded through a MICA grant and NOHFC grants to Mirarco, are not trivial undertakings, but we are confident that the test work will achieve an essential step to proving the viability of the technology."

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

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