BacTech Mining Corporation

BacTech Mining Corporation

March 15, 2005 14:21 ET

BacTech Provides Corporate Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: BACTECH MINING CORPORATION

TSX VENTURE SYMBOL: BM

MARCH 15, 2005 - 14:21 ET

BacTech Provides Corporate Update

TORONTO, ONTARIO--(CCNMatthews - March 15, 2005) - The Board of
Directors of BacTech Mining Corporation ("BacTech")(TSX VENTURE:BM)
today announced that it is actively exploring and pursuing alternatives
to maximize and preserve shareholder value, including the sale or merger
of the Company or a sale of its major asset, its 55% interest in the
Tonkin Springs Mine, located on the Cortez Trend in Nevada. BacTech has
held discussions with third parties concerning strategic and financing
alternatives over the past six months; however, these discussions have
not resulted in a transaction to date.

BacTech has been notified by the Nevada Bureau of Land Management
("BLM") that it will be required to increase its current reclamation
bond in respect of the Tonkin Springs Mine by USD$1.1 million from
USD$1.7 million to USD$2.8 million. As of March 11, 2005, BacTech is
non-compliant with respect to the BLM reclamation bond funding
obligation. BacTech has 30 days to post the additional reclamation bond.
In the event the bond is not posted, the Company's 55% interest in
Tonkin Springs will revert to U.S. Gold Corporation, the original owner
of the property.

In addition, BacTech has an interest payment due on March 21, 2005 in
the amount of $300,000 on its $3 million 10% redeemable debenture.
BacTech currently has a working capital deficit of approximately
$1,868,000 (including $1,700,000 due in respect of the reclamation bond
funding obligation and the interest payment on the redeemable debenture)
and cash resources of less than $350,000.

CORPORATE PROFILE

BacTech has developed and patented bioleach technology for the treatment
of refractory ores and concentrates over the past 16 years to enhance
the recovery of gold, silver and base metals. BacTech has successfully
commissioned three bioleach plants for gold and demonstrated its
technology in the selective recovery of base metals from complex
sulphide concentrates in a joint project with Industrias Penoles de C.V.
of Mexico.

BacTech acquired a 55% stake in Tonkin Springs LLC, the owner of the
Tonkin Springs gold project in north central Nevada, in July 2003.
BacTech has entered into a series of agreements in China and the
Philippines that could see the Company participating in certain
projects. The Company continues to evaluate additional projects where
BacTech's bioleaching technology may be employed.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Corporation,
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 "may" 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 exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
ecological data, 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 "General Development
of the Business of the Company - Risks of the Business" in the
Corporation's annual information form dated May 17, 2004. Circumstances
or management's estimates or opinions could change. The reader is
cautioned not to place undue reliance on forward-looking statements.

Shares Outstanding: 37,447,412

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    BacTech Mining Corporation
    Ross Orr
    President & CEO
    (416) 813-0303
    info@bactech.com
    www.bactech.com
    or
    Linear Capital Corporation
    Mark Brennan
    Toll Free: (877) 600-6001
    Direct: (416) 364-2266