Mr. Scott MacFabe reports

BLUMETRIC ANNOUNCES Q3 2023 FINANCIAL RESULTS

Blumetric Environmental Inc. has released its financial results for the third quarter ended June 30, 2023.

Financial highlights:

• Revenue for the quarter ended June 30, 2023, was $6.9 million, compared to $8.4 million for the same period in 2022. For the nine months ended June 30, 2023, revenue totaled $24.8 million, compared to $24.4 million in the corresponding period of 2022.
• Gross margin for the quarter ended June 30, 2023, was 15%, and the year-to-date gross margin for fiscal 2023 amounted to 20%. This compared to 23% for the same quarter in the previous year and 24% year-to-date for fiscal 2022.
• EBITDA (see definition below) for the quarter ended June 30, 2023, was negative $0.7 million, compared to $0.6 million in the same quarter of the previous year. Year-to-date EBITDA for fiscal 2023 was $0.6 million, compared to $2.0 million year-to-date for fiscal 2022.
• Net loss for the quarter ended June 30, 2023, was $0.7 million, compared to net earnings of $0.3 million in the same quarter of the previous year. Year-to-date net loss for fiscal 2023 was $0.2 million, compared to net earnings of $1.1 million year-to-date for fiscal 2022.
• Net cash (see definition below) as at June 30, 2023 was $3.9 million, compared to net cash of $4.5 million at June 30, 2022.

Business Outlook

BluMetric continues to execute its long-term growth initiatives while navigating a more challenging operational backdrop in the second half of this fiscal year.

During this quarter, the Company faced obstacles in revenue generation due to schedule delays, particularly with respect to the Company's Northern projects. These challenges are expected to continue into the next quarter due to recent widespread forest fires.

There was a decline in gross margin, which was also impacted by one-time costs arising from a custom wastewater treatment system to a mining client. Additionally, the Company made key investments into its employees and its corporate culture, which featured an off-site conference focused on leadership and long-term growth.

Execution challenges on certain projects have influenced this quarter's financial performance. BluMetric is actively addressing these challenges with the goal of restoring a gross margin that aligns with its historical levels.

The Company continues to be pleased with progress in its growth initiatives which has helped drive a strong backlog. This achievement can be attributed to recent strategic business development activities, as well as steady demand for comprehensive environmental solutions within the Company's four key client markets (Commercial & Industrial, Government, Military, and Mining). In particular, the Company is exploring broader market opportunities for its agile water and wastewater products in an effort to monetize its product know-how.

The full results are available on SEDAR+.

BluMetric to Host Investor Conference Call

BluMetric will host a conference call on Tuesday, August 29, 2023 at 1:00 PM ET (10:00 AM PT) to discuss the results. To join the conference call without operator assistance, you may register and enter your phone number on-line to receive an instant automated callback.

You can also dial directly to be entered into the call by an Operator. Please dial 1-888-664-6392 (Toll-Free North America) and enter confirmation number 47011566.

About BluMetric Environmental Inc.

BluMetric Environmental Inc. is a publicly traded environmental consulting and engineering company with expertise across professional and trade disciplines and technologies that allow for the design, fabrication and delivery of sustainable solutions to environmental and water challenges. BluMetric has more than 180 employees operating in ten offices and over 40 years of expertise. Headquartered in Ottawa, Ontario, BluMetric's team of industry experts serves Commercial and Industrial, Military, Mining and Government clients.

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