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BAC.CN ·

BacTech Improves Balance Sheet

Corporate Updates

BacTech Takes Steps to Improve Balance Sheet

Reduces Debt by $1.65M

August 20, 2020 Toronto, Canada

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

OTC:BCCEF) today announced significant balance sheet improvements with respect

to outstanding debt obligations.

“Management of the Company, who have been accruing salaries for over 3 years,

have agreed to a voluntary forgive the indebtedness from accruing compensation

owing to them as of June 30th, 2020 ($1.244M). In its place BacTech will issue 2.5M

stock options exercisable at $0.05 for 10 years to certain employees and

consultants who forfeited their compensation.” stated Ross Orr, President and

CEO.

In addition, an arm’s length holder of $200,000 face value of debentures that

mature in August ($100,000) and September ($100,000) requested that the

Company issue 5,076,260 common shares at a deemed price of $0.05 per share to

eliminate their $253,813 debenture and the accrued interest as of August 15, 2020.

A second arm’ s length debenture holder has agreed to convert 50% of their

$175,000 debenture holdings into common shares and 100% of the accrued

interest at $0.05 per share. These transactions will result in the issuance of

3,083,340 common shares and reduces $154,167 in debenture and interest owing.

All common shares issued through these transactions will be subject to a 4 month

hold period effective August 1 7th, 2020. Both of these conversions were at the

request of the holders.

The above agreements are subject to regulatory or CSE approval, if applicable,

and completing the required filings with the security exchange.

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]

Follow us on:

Facebook http://www.facebook.com/BacTechGreen

Twitter http://twitter.com/BacTechGreen

LinkedIn http://www.linkedin.com/company/1613873

Vimeo http://vimeo.com/bactechgreen

YouTube http://www.youtube.com/user/bactechgreen

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 can 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 actions, 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 forw ard-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 inform ation, 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