Mr. Ross Orr reports

BACTECH STRENGTHENS BALANCE SHEET THROUGH CONVERTIBLE DEBENTURE RESTRUCTURING, REDUCING OUTSTANDING DEBT

Bactech Environmental Corp. has taken another significant step toward strengthening its balance sheet through the restructuring of an existing convertible debenture. This initiative supports the company's broader objective of positioning itself for the capital raise required to launch its Ecuador bioleach facility and advance its zero-tailings initiatives.

In March, 2025, Bactech reached an agreement to potentially eliminate approximately $1.8-million (U.S.) in convertible debt through a two-tiered conversion structure. Following productive discussions between Bactech and the debentureholder, both parties have agreed to a simplified arrangement that achieves the same objectives while reducing dilution and forgiving a substantial portion of the debt.

Revised terms of the agreement:

• The debentureholder will convert $950,000 (U.S.) of principal into 19 million common shares of Bactech.
• The debentureholder will receive 19 million three-year common share purchase warrants, exercisable at 15 U.S. cents per share.
• The remaining $850,000 (U.S.) of debt will be forgiven in exchange for a 1-per-cent royalty on the company's projects.

"This restructuring reflects the continued confidence of a long-standing investor in Bactech's technology and near-term growth prospects," said Ross Orr, president and chief executive officer of Bactech. "By eliminating debt and simplifying our capital structure, we are reinforcing the company's financial foundation and advancing the Ecuador bioleach facility as efficiently as possible."

Bactech believes this transaction highlights continuing stakeholder support for its environmentally responsible bioleaching technology and its mission to deliver profitable, sustainable solutions for processing high-arsenic and complex mineral concentrates.

About Bactech Environmental Corp.

Bactech is a publicly traded, environmental technology company focused on commercializing proprietary bio-oxidation (bioleaching) processes for the safe, sustainable treatment of toxic, arsenic-bearing concentrates and mine tailings. The company's flagship Tenguel-Ponce Enriquez bioleach plant in Ecuador is designed to process high-arsenic gold concentrates while generating strong economic returns and measurable social and environmental benefits. Bactech is also advancing its zero-tailings initiative in Sudbury, Canada, aimed at recovering critical minerals and creating valuable byproducts from pyrrhotite tailings.

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