BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

August 11, 2008 17:00 ET

BioteQ Reports Second Quarter Operating and Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2008) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the second quarter and the six-months ended June 30, 2008. All figures are in Canadian dollars and are in accordance with Canadian GAAP.

Second quarter operating and financial highlights include:

- Two new plants located in China and Australia were successfully commissioned, with production ramped up over the quarter.

- Revenues increased by 40% to $1.5 million in Q2 2008, compared to $1.1 million in Q2 2007, primarily due to new revenues from the China operation. Excluded from this revenue was $925,000 in production from Mt. Gordon during Q2 2008, due to transportation delays. This sale has been booked in early 3Q 2008.

- The net loss for the quarter was $747,000, compared to $667,000 in Q2 2007.

- Plant operations generated positive cash flow of $593,000 for Q2, and close to $1 million for the year-to-date.

- BioteQ continues to maintain a strong balance sheet, with $18.6 million in working capital and no debt.

BioteQ's second quarter 2008 financial performance reflect results from 4 operations - water treatment plants at Bisbee, Raglan, Dexing, and gold plant commissioning at Lluvia de Oro. Production from the Mt. Gordon site is not reflected in the Q2 operating results because the concentrate produced during the quarter was shipped shortly after the quarter end, due to a transportation delay beyond the control of the Company. As a result, revenues of approximately $925,000 from the sale of 274,000 pounds of copper are expected to be recognized in the third quarter, based on current metal prices. The net realizable value of the concentrate has been reflected as inventory.

Brad Marchant, BioteQ's CEO, stated, "BioteQ's investments in new plants are beginning to provide returns, and the Company is well positioned for additional growth over the balance of 2008. The Company now has five active operations, with four new plants under construction and a strong development pipeline of new projects to drive future growth."

BioteQ remained active with new projects and new technology during the second quarter, with capital expenditures of $1.6 million invested in new plants and equipment, primarily for completion of the new water treatment plant at the Lluvia de Oro gold mine site in Mexico, which is presently ramping up production. The Company expects to invest a further $2 million over the balance of 2008 on projects in Chile, China and Canada.

BioteQ's quarterly financial statements and the Company's MD&A have been filed on SEDAR, www.sedar.com, and will be available on the BioteQ website at www.bioteq.ca.

A conference call to discuss the financial results is scheduled for Tuesday August 12, at 11:00 am Eastern. Participants may call 416-695-7806 or 1-888-789-9572 and enter reference number 3268313#. A replay of the call will be available until August 26 by dialing 416-695-5800 or 1-800-408-3053, reference number 3268313. A recording will be available within two days of the call on the BioteQ website at www.bioteq.ca.

BioteQ Corporate Profile

BioteQ builds, owns and operates water treatment plants for the world's mining companies and utility operators, reducing environmental liabilities while generating revenue from waste. The Company's commercially proven technology treats acid mine drainage and other metal-laden waste water by sequentially removing metals and sulphate, producing saleable metal products and clean water that can be discharged safely to the environment. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, go to www.bioteq.ca.

On behalf of the Board of Directors

Brad Marchant

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate" and other similar words, or statements that certain events or conditions "might" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the development, construction and operation of water treatment plants, variations in water quality, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future and other factors described in the section entitled "Risks" in the Company's Annual Report for the Year Ended December 31, 2007. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.



BioteQ Environmental Technologies Inc.

Consolidated Balance Sheets
--------------------------------------------------------------------------

June 30 2008 Dec 31 2007
(Unaudited)
$ $
------------------------
Assets

Current assets

Cash and cash equivalents 1,534,642 1,758,744
Short-term investments 15,017,125 23,616,521
Trade receivables 326,903 339,217
Receivable from joint venture partners 546,738 153,318
Loan receivable (note 7) 1,661,238 -
Taxes recoverable 646,809 146,831
Inventory (note 6) 1,065,354 49,380
Prepaid expenses 31,507 164,594
Other receivables 16,057 224,180
------------------------
20,846,373 26,452,785

Property, plant and equipment (note 8) 21,241,122 15,832,942
Intangible asset (note 9) 178,084 193,570
------------------------
42,265,579 42,479,297
------------------------
------------------------

Liabilities

Current liabilities

Accounts payable and accrued liabilities 2,263,276 3,098,124
------------------------
2,263,276 3,098,124
------------------------

Shareholders' Equity

Capital stock, warrants and contributed surplus
(note 10) 56,870,204 55,041,322
Deficit (16,867,901) (15,660,149)
------------------------
40,002,303 39,381,173
------------------------
42,265,579 42,479,297
------------------------
------------------------
Commitments (note 14)

Approved by the Board of Directors

"P.B. Marchant" "Clement A. Pelletier"
----------------------- ------------------------------
P.B. Marchant, Director Clement A. Pelletier, Director

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.

Consolidated Statement of Operations, Comprehensive Loss and Deficit
(Unaudited)
--------------------------------------------------------------------------

3 months ended June 30th, 6 months ended June 30th,
------------------------ ------------------------
2008 2007 2008 2007

Revenue 1,506,785 1,072,045 2,321,972 2,188,617
------------------------ ------------------------

Operating expenses

Plant and other
operating
costs 913,987 597,831 1,350,277 1,253,504
General and
administrative
expenses 592,935 606,297 1,112,576 1,140,637
Marketing and
development costs 292,697 160,207 421,037 307,781
------------------------ ------------------------

Operating expenses
before amortization and
stock-based
compensation 1,799,619 1,364,335 2,883,890 2,701,922

Amortization of
property, plant and
equipment (note 8) 234,037 90,645 327,495 181,133
Amortization of
intangible asset
(note 9) 7,743 7,743 15,486 15,486
Stock-based compensation
charge (note 10) 440,000 446,992 806,000 679,200
------------------------ ------------------------

Loss before the under
noted (974,614) (837,670) (1,710,899) (1,389,124)

Interest income 193,100 296,507 440,509 585,358

Interest expense - (5,675) - (11,984)

Deferred financing costs
written-off - - - (32,771)

Foreign exchange gain
(loss) 34,174 (120,002) 62,638 (134,257)
------------------------ ------------------------

Loss and comprehensive
loss for the period (747,340) (666,840) (1,207,752) (982,778)

Deficit - Beginning of
period (16,120,561) (11,808,727) (15,660,149) (11,492,789)
------------------------ ------------------------

Deficit - End of period (16,867,901) (12,475,567) (16,867,901) (12,475,567)
------------------------ ------------------------
------------------------ ------------------------

Loss per share - basic
and diluted (0.01) (0.01) (0.02) (0.02)
------------------------ ------------------------
------------------------ ------------------------

Weighted average number
of shares (excludes
6,300,000 performance
based escrow shares) 59,710,897 53,931,898 59,473,411 53,695,233
------------------------ ------------------------
------------------------ ------------------------

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.


BioteQ Environmental Technologies Inc.

Consolidated Statement of Cash Flows
(Unaudited)
--------------------------------------------------------------------------

3 months ended June 30th, 6 months ended June 30th,
------------------------ ------------------------
2008 2007 2008 2007

Cash flows from (used in)
operating activities

Loss for the period (747,340) (666,840) (1,207,752) (982,778)
Items not affecting
cash
Amortization of
property, plant and
equipment 234,037 90,645 327,495 181,133
Amortization of
intangible asset 7,743 7,743 15,486 15,486
Deferred financing
costs written-off - - - 32,771
Stock based
compensation charge 440,000 446,992 806,000 679,200
------------------------ ------------------------
(65,560) (121,460) (58,771) (74,188)
Change in non-cash
working capital items (1,438,342) 985,645 (2,390,696) 646,750
------------------------ ------------------------
(1,503,902) 864,185 (2,449,467) 572,562
------------------------ ------------------------

Cash flows from (used in)
financing activities

Proceeds from exercise of
warrants and options 824,236 1,859,322 1,022,882 2,921,845
Repayment of bank loan - (45,924) - (91,215)
------------------------ ------------------------
824,236 1,813,398 1,022,882 2,830,630
------------------------ ------------------------

Cash flows from (used in)
investing activities

Purchase of property,
plant and equipment (1,637,609) (1,967,889) (5,735,675) (2,395,729)
Short-term investments 1,190,419 (9,816,239) 8,599,396 605,837
Increase in loan
receivable (1,661,238) - (1,661,238) -
------------------------ ------------------------
(2,108,428) (11,784,128) 1,202,483 (1,789,892)
------------------------ ------------------------

(Decrease) Increase in
cash and cash
equivalents (2,788,094) (9,106,545) (224,102) 1,613,300
Cash and cash
equivalents - Beginning
of period 4,322,736 12,633,913 1,758,744 1,914,068
------------------------ ------------------------
Cash and cash
equivalents - End of
period 1,534,642 3,527,368 1,534,642 3,527,368
------------------------ ------------------------
------------------------ ------------------------

Supplemental cash flow
information

Interest paid - 5,675 - 11,984
Withholding taxes paid
and receivable - - - 136,434

For a complete set of consolidated financial statements including
accompanying notes, go to www.bioteq.ca.

The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

Contact Information

  • BioteQ Environmental Technologies Inc.
    Tanja McQueen
    Corporate Development
    (604) 685-1243 or 1-800-537-3073
    or
    BioteQ Environmental Technologies Inc.
    Caren Holtby
    Investor Relations
    (604) 685-1243 or 1-800-537-3073
    (604) 685-7778 (FAX)
    Email: investor@bioteq.ca
    Website: www.bioteq.ca