BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

March 13, 2008 17:00 ET

BioteQ Reports 2007 Year End Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 13, 2008) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the year ended December 31, 2007. All figures are in Canadian dollars and are in accordance with Canadian GAAP.

BioteQ reported stable revenues of $4.6 million, with positive cash flow from operating activities of $2.3 million, prior to general and administrative costs and other expenses. After all expenses, cash flow from operating activities was $192,000 for the year. The Company maintained a strong balance sheet, ending the year with $25 million in cash and short-term investments and $23 million in working capital.

Brad Marchant, BioteQ's CEO, stated, "2007 was a year of growth for BioteQ, with significant investments in new plants in the latter half of the year, entry into new geographic markets, expansion of our customer base, and the application of new strategic technologies for longer term growth. The Company has maintained a balanced portfolio of revenues from metal recovery and water treatment fees, and continues to look for a three year pay-back on capital on new projects. We expect that new operating plants which are currently coming online will contribute to a profitable 2008."

BioteQ invested $11.1 million in new plants during 2007. Two plants are in the final stages of commissioning, located in Australia, and China, and are expected to contribute to revenue in Q2 2008. Five other projects, at locations in the US, Mexico, and Chile, are in design and construction, including two plants that will deploy BioteQ's new Sulf-IX™ technology to remove sulphate from water. The Company expects to invest $6 million in capital projects in 2008, which will be funded from existing cash and short-term investments. The Company continues to pursue new business development opportunities to add to its project pipeline.

The Company reported an overall net loss of $4.1 million for 2007. The loss is primarily due to non-cash accounting items, including stock-based compensation ($1.83 million) and a one-time adjustment for a change in escrow share release criteria ($2.1 million).

BioteQ's 2007 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 Friday March 14, at 11:00 am Eastern. Participants may call 1-888-789-9572 or 416-695-7806, and enter access code 3254044. A replay of the call will be available until March 28 by dialing 1-800-408-3053 or 416-695-5800, access code 3254044. A recording of the call will be available within three days 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
As at December 31, 2007 and 2006
--------------------------------------------------------------------------

2007 2006
$ $

Assets

Current assets

Cash and cash equivalents 1,758,744 1,914,068
Short-term investments 23,616,521 25,285,846
Trade receivables 339,217 521,273
Receivable from joint venture partners 153,318 64,790
Taxes receivable 146,831 186,447
Inventory (note 6) 49,380 251,652
Prepaid expenses 164,594 120,246
Other receivables 224,180 89,164
------------------------
26,452,785 28,433,486

Property, plant and equipment (note 7) 15,832,942 5,042,592

Intangible asset (note 8) 193,570 224,542

Deferred financing costs - 32,771
------------------------
42,479,297 33,733,391
------------------------
------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 3,098,124 992,794
Bank loan (note 9) - 398,670
------------------------
3,098,124 1,391,464
------------------------

Shareholders' Equity

Capital stock, warrants and contributed surplus
(note 10) 55,041,322 43,834,716

Deficit (15,660,149) (11,492,789)
------------------------
39,381,173 32,341,927
------------------------
42,479,297 33,733,391
------------------------
------------------------

Commitments (note 14)
Subsequent events (note 15)

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


BioteQ Environmental Technologies Inc.

Consolidated Statements of Operations, Comprehensive Loss and Deficit
For the years ended December 31, 2007 and 2006
--------------------------------------------------------------------------

2007 2006
$ $

Revenue 4,630,272 4,519,728
------------------------

Operating expenses
Plant and other operating costs 2,281,072 2,868,188
General and administrative expenses 2,274,739 1,981,987
Marketing and development costs 749,493 842,434
------------------------

Operating expenses before amortization and
stock-based compensation 5,305,304 5,692,609

Amortization of property, plant and equipment
(note 7) 364,599 391,377
Amortization of intangible asset (note 8) 30,971 23,228
Stock-based compensation charge (note 10) 1,830,727 429,168
Modification of escrowed shares (note 10) 2,100,000 -
------------------------

Loss before the under noted (5,001,329) (2,016,654)

Interest income 1,180,679 348,852

Loss on disposal of plant - (6,192)

Interest expense (22,707) (55,183)

Deferred financing costs written-off (32,771) (36,208)

Foreign exchange (loss) gain (291,232) 16,794
------------------------

Loss and comprehensive loss for the year (4,167,360) (1,748,591)

Deficit - Beginning of year (11,492,789) (9,744,198)
------------------------

Deficit - End of year (15,660,149) (11,492,789)
------------------------
------------------------

Loss per share - basic and diluted (0.08) (0.04)
------------------------
------------------------

Weighted average number of shares outstanding 55,010,825 39,842,920
------------------------
------------------------

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


BioteQ Environmental Technologies Inc.

Consolidated Statements of Cash Flows
For the years ended December 31, 2007 and 2006
--------------------------------------------------------------------------

2007 2006
$ $

Cash flows from (used in) operating activities
Loss for the year (4,167,360) (1,748,591)
Items not affecting cash
Amortization of property, plant and equipment 364,599 391,377
Amortization of intangible asset 30,971 23,228
Deferred financing costs written-off 32,771 36,208
Accretion of Series A debentures - 10,084
Stock-based compensation charge 1,830,727 429,168
Modification of escrowed shares 2,100,000 -
Loss on disposal of plant - 6,192
------------------------
191,708 (852,334)
Change in non-cash working capital items 341,383 (504,974)
------------------------
533,091 (1,357,308)
------------------------
Cash flows from (used in) financing activities
Issuance of common shares and warrants - 19,999,999
Share issuance costs - (1,621,962)
Proceeds from exercise of warrants and options 7,275,879 5,063,664
Repayment of bank loan (398,670) (177,645)
Deferred financing costs - (1,000)
------------------------
6,877,209 23,263,056
------------------------
Cash flows from (used in) investing activities
Purchase of property, plant and equipment (9,234,949) (596,486)
Proceeds from disposal of property, plant and
equipment - 419,847
Short-term investments 1,669,325 (25,285,846)
Purchase of intangible asset - (247,770)
------------------------
(7,565,624) (25,710,255)
------------------------
Decrease in cash and cash equivalents (155,324) (3,804,507)

Cash and cash equivalents - Beginning of year 1,914,068 5,718,575
------------------------
Cash and cash equivalents - End of year 1,758,744 1,914,068
------------------------
------------------------

Supplemental cash flow information
Interest paid 22,707 45,099
Withholding taxes paid and receivable 146,831 186,447

Non-cash operating, financing and investing
activities
Debentures converted to common shares (note 10) - 465,254
Warrants issued in settlement of issue costs
(note 10) - 393,801
Units issued in settlement of issue costs
(note 10) - 87,500
Increase in accounts payable and accrued
liabilities related to purchase of
property, plant and equipment 1,920,000 -

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
    or
    Wolfe Axelrod Weinberger Assoc LLC - In the U.S.
    Adam P. Lowensteiner
    (212) 370-4500
    (212) 370-4505 (FAX)
    Email: adam@wolfeaxelrod.com