BioteQ Environmental Technologies Inc.
TSX : BQE

BioteQ Environmental Technologies Inc.

May 14, 2008 17:30 ET

BioteQ Reports Q1 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2008) - BioteQ Environmental Technologies, Inc. (TSX:BQE), a leader in the treatment of metal and sulphate contaminated water, today reported financial results for the three months ended March 31, 2008. All figures are in Canadian dollars and are in accordance with Canadian GAAP.

BioteQ reported quarterly revenues of $815,000, with positive cash flow from operating activities of $379,000, prior to general and administrative costs and other expenses, compared to revenues of $1,117,000 and cash flow from operating activities of $461,000 in the first quarter of 2007. After all expenses, cash flow from operating activities for the quarter was $7,000 in 2008, compared to $47,000 in 2007. The overall net loss for the quarter was $460,000 in 2008, compared to $315,000 in 2007. The Company continues to maintain a strong balance sheet, ending the quarter with $20.5 million in cash and short-term investments and $19.3 million in working capital.

Revenues for the first quarter were down compared to the first quarter of 2007, primarily because BioteQ is no longer operating the water treatment facilities at the Caribou mine site. In the first quarter of 2007, the Caribou project contributed $245,000 in revenue, with a contribution of $49,000 to cash flow from net operating activities. In addition, revenues from the Bisbee operation are down in 2008, from $730,000 to $557,000 due to a sale in 2007 of inventory from 2006, and also due to a slightly lower copper grade and volume of water treated in 2008.

BioteQ reports that its new water treatment plants in China and Australia completed commissioning as of April 1, 2008. Both plants produced inventories of saleable copper product totaling approximately 128,000 pounds as of March 31; the revenue from the sale of these inventories is expected to be reported in the second quarter.

Brad Marchant, BioteQ's CEO, stated, "With final commissioning complete, BioteQ expects increased revenue during the second quarter of 2008 compared to 2007, as the new plants ramp up production and contribute to revenues."

BioteQ has been very active with new projects in the first quarter, with capital expenditures of $4.1 million invested in new plants and equipment. A further $1.3 million is expected to be incurred in completing existing construction projects, primarily the Lluvia de Oro project in Mexico. The Company has 5 projects in its construction pipeline, at locations in the US, Mexico, and Chile. Additional projects are in development in China, Canada, Mexico, and Chile, including the recently announced Yinshan project with Jiangxi Copper Company.

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 Thursday May 15, at 11:00 am Eastern. Participants may call 416-695-7806 or 1-888-789-9572 and enter reference number 3260794#. A replay of the call will be available until May 30, by dialing 416-695-5800 or 1-800-408-3053, reference number 3260794. A recording of the call 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
--------------------------------------------------------------------------

March 31
2008 Dec 31
(Unaudited) 2007
$ $

Assets

Current assets
Cash and cash equivalents 4,322,736 1,758,744
Short-term investments 16,207,544 23,616,521
Trade receivables 98,180 339,217
Receivable from joint venture partners 201,391 153,318
Taxes receivable 537,646 146,831
Inventory (note 6) 365,157 49,380
Prepaid expenses 63,405 164,594
Other receivables 50,065 224,180
------------------------
21,846,124 26,452,785

Property, plant and equipment (note 7) 20,007,550 15,832,942

Intangible asset (note 8) 185,827 193,570

------------------------
42,039,501 42,479,297
------------------------
------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities 2,554,094 3,098,124
------------------------
2,554,094 3,098,124
------------------------

Shareholders' Equity

Capital stock, warrants and contributed surplus
(note 9) 55,605,968 55,041,322

Deficit (16,120,561) (15,660,149)
------------------------
39,485,407 39,381,173
------------------------
42,039,501 42,479,297
------------------------
------------------------

Commitments (note 13)

Subsequent events (note 14)

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
(Unaudited)
For the three months ended March 31
--------------------------------------------------------------------------

2008 2007
$ $

Revenue 815,187 1,116,572
------------------------

Operating expenses
Plant and other operating costs 436,291 655,673
General and administrative expenses 519,641 534,339
Marketing and development costs 128,339 147,575
------------------------

Operating expenses before amortization and
stock-based compensation 1,084,271 1,337,587

Amortization of property, plant and equipment
(note 7) 93,458 90,488
Amortization of intangible asset (note 8) 7,743 7,744
Stock-based compensation charge (note 9) 366,000 232,207
------------------------

Loss before the under noted (736,285) (551,454)

Interest income 247,409 288,851

Interest expense - (6,309)

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

Foreign exchange gain (loss) 28,464 (14,255)
------------------------

Loss and comprehensive loss for the period (460,412) (315,938)

Deficit - Beginning of period (15,660,149) (11,492,789)
------------------------

Deficit - End of period (16,120,561) (11,808,727)
------------------------
------------------------

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

Weighted average number of shares outstanding 59,235,924 53,249,446
------------------------
------------------------
(excludes 6,300,000 performance based escrow shares)

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)
For the three months ended March 31
--------------------------------------------------------------------------

2008 2007
$ $

Cash flows from (used in) operating activities
Loss for the period (460,412) (315,938)
Items not affecting cash
Amortization of property, plant and equipment 93,458 90,488
Amortization of intangible asset 7,743 7,744
Deferred financing costs written-off - 32,771
Stock-based compensation charge 366,000 232,207
----------------------
6,789 47,272
Change in non-cash working capital items (952,354) (338,895)
----------------------
(945,565) (291,623)
----------------------
Cash flows from (used in) financing activities
Proceeds from exercise of warrants and options 198,646 1,062,523
Repayment of bank loan - (45,291)
----------------------
198,646 1,017,232
----------------------
Cash flows from (used in) investing activities
Purchase of property, plant and equipment (4,098,066) (427,840)
Short-term investments 7,408,977 10,422,076
----------------------
3,310,911 9,994,236
----------------------
Increase in cash and cash equivalents 2,563,992 10,719,845
Cash and cash equivalents - Beginning of period 1,758,744 1,914,068
----------------------
Cash and cash equivalents - End of period 4,322,736 12,633,913
----------------------
----------------------

Supplemental cash flow information
Interest paid - 6,309
Withholding taxes paid and receivable 152,991 64,402

Non-cash operating, financing and investing
activities
Increase in accounts payable and accrued
liabilities related to purchase of
property, plant and equipment 110,000 -

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