BioteQ Reports 2010 Year End Operating and Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of industrial waste water, reports its financial and operating results for the year ended December 31, 2010. All figures are in Canadian dollars and are in accordance with Canadian GAAP, unless otherwise noted.

2010 operating and financial results summary:

• BioteQ treated approximately 8 billion litres of water and removed over 1 million kilograms (2.2 million pounds) of metal contaminants from the environment in 2010.
  
  
• Significant achievements for the year included establishing three strategic alliances to expand BioteQ's market presence, the commercial-scale launch of BioteQ's Sulf-IX™ technologies for sulphate removal, and expansion of BioteQ's operations portfolio of projects. Projects included new permanent operations at the Minto Mine in the Yukon, construction of a third plant at the Dexing Mine in China, a new ChemSulphide® plant in the US, three new engineering projects, and three pilot operations to introduce new technologies and secure new customers.
  
  
• Revenue increased by 37%, or $2.3 million over 2009. The increase was mainly attributable to higher copper prices, new operations, and an increase in fee-based projects.
  
  
• Operating margin increased from $1.4 million in 2009 to $3.8 million in 2010.
  
  
• The company encountered unexpected events in the fourth quarter that have impacted the overall financial results. First, the Bisbee operation experienced an unexpected shut-down which reduced copper production at the site. Second, NWM Mining defaulted on its lease obligations for the Lluvia de Oro site. Third, the company was unable to finalize an agreement with Birla Mt. Gordon to resume water treatment operations at the Mt. Gordon site.
  
  
• The 2010 results include impairment charges of $7.5 million related to the Mt. Gordon operation and $8.3 million related to the Lluvia de Oro project, totaling $15.8 million.
  
  
• The Company ended the year with working capital of $13.8 million, an increase of $6.1 million over 2009. The company carries no debt.
  
  
• BioteQ has new projects for 2011 with Barrick Gold, EcoMetales, and Newalta, as well as a growing pipeline of projects for 2012 and beyond.

BioteQ's 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 web-based audio conference call to discuss the financial results is scheduled for Tuesday March 29 at 11:00 am Eastern. Participants can register for the conference call and access the presentation through the following link:

http://bellwebcasting.ca/audience/index.asp?eventid=69030397.

The audio portion of the call may be accessed by dialing 416-340-2217, or 1-866-696-5910, reference number 3277435. A recording will be available on the BioteQ website within two days of the call.

BioteQ Corporate Profile

BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company's clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.

BioteQ's sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please go to www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Balance Sheets
As at December 31, 2010 and 2009
	2010	2009
	$	$
Assets
Current assets
Cash and cash equivalents	4,653,465	2,491,302
Short-term investments	7,957,391	2,849,244
Trade receivables	1,676,963	2,169,978
Receivable from joint venture partners	180,204	47,288
Current portion of loan receivable (note 7)	-	468,424
Net insurance proceeds receivable (note 12)	618,248	-
Taxes recoverable	15,469	76,597
Inventory (note 5)	54,723	658,874
Prepaid expenses	237,775	223,302
	15,394,238	8,985,009
Loan receivable (note 7)	-	10,339,235
Property, plant and equipment (note 8)	7,307,136	14,930,511
Intangible asset (note 9)	100,654	131,626
	22,802,028	34,386,381
Liabilities
Current liabilities
Accounts payable and accrued liabilities	1,544,901	1,295,759
Deferred lease inducement	47,362	-
	1,592,263	1,295,759
Long-term liabilities (note 13)	46,884	-
	1,639,147	1,295,759
Shareholders' Equity
Capital stock, warrants and contributed surplus (note 14)	63,232,605	58,689,871
Deficit	(42,069,724)	(25,599,249)
	21,162,881	33,090,622
	22,802,028	34,386,381
Commitments (note 20)
Contingencies (note 4)
Subsequent event (note 4)
Approved by the Board of Directors
P.B. Marchant, Director	G.W. Poling, Director
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, 2010 and 2009
	2010	2009
	$	$
Revenue	8,744,237	6,394,615
Operating expenses
Plant and other operating costs	4,920,893	5,036,999
General and administrative expenses	3,094,422	2,772,584
Marketing and development costs	842,572	828,843
Operating expenses before amortization, impairment and stock-based compensation	8,857,887	8,638,426
Amortization of property, plant and equipment (note 8)	967,978	1,078,159
Amortization of intangible asset (note 9)	30,972	30,972
Impairment of Mt. Gordon operations (notes 11 and 12)	7,453,439	-
Impairment of Lluvia de Oro operations (note 7)	8,282,650	-
Stock-based compensation charge (note 14)	520,500	890,000
Loss before the under-noted	(17,369,189)	(4,242,942)
Interest income	79,133	76,930
Other income	99,713	122,666
Lease fee income	1,000,710	526,231
Foreign exchange loss	(56,114)	(353,562)
Loss before income taxes	(16,245,747)	(3,870,677)
Income tax expense (note 15)	224,728	126,236
Loss before extraordinary items	(16,470,475)	(3,996,913)
Extraordinary items (note 12)	-	(697,038)
Net loss and comprehensive loss for the year	(16,470,475)	(4,693,951)
Deficit - Beginning of year	(25,599,249)	(20,905,298)
Deficit - End of year	(42,069,724)	(25,599,249)
Loss per share - basic and diluted (note 2)	(0.24)	(0.08)
Weighted average number of basic and diluted shares outstanding	67,782,512	62,087,137
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
For the years ended December 31, 2010 and 2009
		2010	2009
		$	$
Cash flows from (used in) operating activities
Net loss for the year		(16,470,475)	(4,693,951)
Items not affecting cash:
	Amortization of property, plant and equipment	967,978	1,078,159
	Amortization of intangible asset	30,972	30,972
	Amortization of deferred lease inducement	(14,208)	-
	Impairment of Mt. Gordon operations	7,389,725	-
	Impairment of Lluvia de Oro operations	8,282,650	-
	Stock-based compensation charge (note 14)	520,500	890,000
		707,142	(2,694,820)
Change in non-cash working capital items (note 16)		(544,352)	(1,593,595)
		162,790	(4,288,415)
Cash flows from financing activities
Proceeds from exercise of warrants and options		22,234	42,234
Proceeds from issuance of capital stock and warrants		4,000,000	-
Increase in long-term liabilities		46,884	-
		4,069,118	42,234
Cash flows from (used in) investing activities
Purchase of property, plant and equipment		(1,068,059)	(140,746)
Purchase of short-term investments		(23,022,738)	(12,861,204)
Proceeds from sale of short-term investments		17,914,591	15,714,656
Repayment of loan receivable		4,106,461	500,000
		(2,069,745)	3,212,706
Increase (decrease) in cash and cash equivalents		2,162,163	(1,033,475)
Cash and cash equivalents
	Beginning of year	2,491,302	3,524,777
	End of year	4,653,465	2,491,302
Supplemental cash flow information (note 16)
For a complete set of consolidated financial statements including accompanying notes, 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, 2010. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.