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BacTech Completes Collection of Concentrate Samples

Corporate Updates

BacTech Completes Collection of Gold Concentrate Samples from

Six Ecuador Processing Plants

July 9, 2020

BacTech Environmental Corporation (“BacTech or the Company”) (CSE: BAC, OTC:

BCCEF) today announced it has completed the collection of gold concentrate

samples produced by six different gold processing facilities in Ponce Enriquez and

Portovelo, Ecuador.

Ross Orr, President and CEO of BacTech states “This represents an important step

to move the Ponce Enriquez bioleach gold project forward in Ecuador. We are very

pleased that we were able to attract concentrate from various producers in our

selected test a reas, which demonstrates their willingness and desire to improve

margins and to provide sound environmental solutions in a region that depends on

mining to provide local jobs and economic well-being for its own people.”

The six collected 10 kg samples will be assayed at a local laboratory and a

representative composite sample will then be made and shipped to Perth,

Australia. Once in Perth, the sample material will be sent to ALS Labs where a

Bioleach Test Program will be undertaken under the supervision of BacTech V.P.,

Technology and Engineering, Dr. Paul Miller. The Bioleach Test Program results and

report are expected to be completed within six months.

Based on prior BacTech sampling experience, the Company anticipates a positive

outcome to the proposed Bioleach Test Program, at which time a third-party

engineering group will be engaged to undertake a Prefeasibility Study that would

provide anticipated economics for the project.

The areas where the gold concentrate samples were collected are known for their

high levels of arsenic. It is this high level of arsenic in the concentrates that leads to

dramatically reduced pr ices being paid to local producers . The majority of the

discounted high arsenic material is bought by Asian smelters and roasters and

shipped offshore.

As opposed to shipping the concentrate offshore, BacTech proposes to build a local

plant that would endeavour to pay higher prices for the concentrate and keep jobs

in Ecuador. The combination of inexpensive energy, high grades of gold, favourable

tax incentives, the elimination of transportation costs to Asia, and the government

export tax make the use of bioleaching in Ponce Enriquez extremely attractive for

gold producers and BacTech.

BacTech is targeting concentrates with a cut -off grade of 40 grams per tonne and

arsenic levels above 10%. The following are the grades reported by the processing

plants for the samples that were collected . These are grades supplied by the

processor and all the samples will be subject to assay verification upon arrival in

Perth.

Summary of Samples Collected From 6 Process Plants in Ponce Enriquez

Plant Sample Wet

Weight

(kg)

Flotation Stated

Grade

Au

gpt/opt

Stated

As

Grade

in %

Monthly

Wet

Tonnage

Share

of Total

(%)

A Conc 10 Yes +CIP 40 / 1.3 0.9 125 11.11

B Conc 10 Yes 20/ 0.65 16 175 15.56

C Conc 10 Yes +CIP 50/ 1.6 27 175 15.56

D Conc 10 Yes 60/1.9 10 200 17.78

E Conc 10 Yes 35/1.13 12 250 22.22

F Conc 10 Yes 55/1.77 15 200 17.78

Total 60 43.33/1.4 13.48 1125 100

gpt= grams per tonne, opt = ounces per tonne

As illustrated above, the grades of all concentrates provided by the producers

exceed 35 gpt of gold (1.13 opt) except for one and are as high as 60 gpt (1.93 opt).

As well, the average grade of arsenic in the samples exceeds 13%. Given the high

level of a rsenic in the concentrates , the producer is forced to accept heavy

penalties from the buyers.

BacTech has publicly discussed that the expected daily capacity of the proposed

Ponce Enriquez bioleaching plant would be 40 tpd. From the above chart , we

identify a cumulative feed of 1125 tonnes per month or 37.5 tpd of concentrate.

Given the positive response we received from the producers, BacTech will consider

increasing the initial capacity of the plant to 50 tpd or more. The Company believes

that the completion of the plant in Ponce Enriquez will attract additional feed from

other mines in Ecuador as well as Peru and Colombia. Bioleaching is modular in

nature and can be expanded without interrupting an existing operation.

Yesterday, BacTech commented on a recent tailings burst in Ponce Enriquez. The

Company is eager to bring assistance to the tailing issues in Ponce Enriquez in

addition to safely processing concentrates from local mines. BacTech has held

discussions with various levels of government in the past and will continue to

provide feedback to them as we proceed with our test program.

BacTech anticipates releasing results of the ongoing Bioleach Test Program as they

become available.

ABOUT BACTECH

BacTech is promoting the use of its proprietary bioleach processing technology to

treat historic arsenopyrite concentrates and tailings produced in the Ponce

Enriquez area of Southern Ecuador.

BacTech has agreed to participate with a group looking to reprocess the Arsenic

Stockpile in Snow Lake, Manitoba as a technology partner.

For further information contact: Ross Orr, President & CEO, BacTech Environmental

Corporation/ 416- 813-0303 ext. 222, Cell 416- 346-5529 and Email:

[email protected]

Robin Cook, Investor Relations: 416-809-1738, Email: [email protected]

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Special Note Regarding Forward-Looking Statements

This news release contains “forward-looking information”, which may include, but

is not limited to, statements with respect to future tailings sites, sampling or other

investigations of tailing sites, the Company’s ability to make use of infrastructure

around tailings sites or operating performance of the Company and its projects.

Often, but not always, forward -looking statements c an be identified using words

such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”,

“forecasts”, “intends”, “anticipates”, or believes” or variations (including negative

variations) of such words and phrases, or state that certain a ctions, events or

results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved.

Forward-looking statements involve known and unknown risks, uncertainties and

other factors which may cause the actual results, performance or achievements of

the Company to be materially different from any future results, performance or

achievements expressed or implied by the forward- looking statements. Forward-

looking statements contained herein are made as of the date of this news release

and the Company disclaims, other than as required by law, any obligation to update

any forward -looking statements whether because of new information, results,

future events, circumstances, or if management’s estimates or opinions should

change, or otherwise. There can be no assurance that forward-looking statements

will prove to be accurate, as actual results and future events could differ materially

from those anticipated in such statements. Accordingly, the reader is cautioned not

to place undue reliance on forward-looking statements.

Shares outstanding: 105,420,423

The Canadian Securities Exchange (CSE) has not reviewed and does not accept

responsibility for the adequacy or the accuracy of the contents of this release.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the

shares, nor is it a solicitation of interest from a prospective investor.