BacTech Announces Note Financing: Financial News

TORONTO, ONTARIO--(MARKET WIRE)--Jul 23, 2008 -- BacTech Mining Corporation ("BacTech" or the "Company")(CDNX:BM.V - News) today announced that it will raise, via private placement, up to $750,000 in a 2 year, convertible, retractable note unit. Given the depressed nature of the mining equity markets, the Company felt that it would be prudent to issue a less dilutive instrument today rather than issue common shares and warrants at this level. The private placement is subject to requisite regulatory approval, including the approval of the TSX Venture Exchange (the "Exchange").

The underlying conversion price has been set at $0.10. BacTech will have the option to repay the note within 4 months (the "retraction"). If BacTech wishes to exercise its retraction right, the holder of the note will have the right to convert up to 20% of the note into common shares. After 4 months, the holder of the note will have the conversion option. The note holder will also be granted three warrants for each dollar invested. Each warrant will entitle the holder to acquire one additional common share, at a price of $0.15 for a period of two years. The interest rate on the note will be 1.5% per month, which shall be paid semi-annually, with the first 6 month's interest payments being placed into escrow.

In connection with the private placement, and subject to approval by the Exchange, a finder's fee of 5% may be paid to certain arm's length parties.

The rationale behind the note placement at this time is as follows.

- To raise money via a common share unit at today's prices would mean the issuance of up to 7.5 million common shares and a like amount of warrants (15 million shares fully-diluted)

- The issuance of the note, should it be retracted within four months, would result in the potential issuance of up to 1.5 million common shares and up to 2.25 million warrants (3.75M shares fully-diluted).

- The four month time period allows the Company to close additional transactions (which would additionally be subject to requisite regulatory approval, including without limitation, the approval of the Exchange) to add more value to the Company and thus the price of the Company's common shares. A future financing, hopefully at a higher common share price, can be conducted in a market that might be more receptive to purchasing resource-based equities.

- The ability to raise capital in the summer months is inhibited by the reduced level of activity in the stock markets.

Part of the proceeds of the note will be used to produce an NI 43-101 compliant resource statement for assets recently acquired from Yamana Gold Inc. ("Yamana") in Papua New Guinea ("PNG"), as announced on June 18, 2008. The transfer of title of the PNG assets from Yamana is subject to requisite regulatory approval including, without limitation, the approval of the Exchange, as well as PNG governmental approval.

It is likely that BacTech will require shareholder approval to complete the acquisition as, according to the rules of the Exchange, the acquisition is a reviewable transaction. It is expected that the approval of shareholders will be sought in respect of such transaction and that this will be procured by the Corporation by written shareholder approval and the filing of a filing statement in accordance with the rules of the Exchange. It is expected that final PNG government approval will be obtained by September 2008.

BACTECH PROFILE

BacTech has developed and patented bacterial oxidation technology for the treatment of refractory ores and concentrates 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 that was completed in 2001. The Company's focus is the acquisition of equity positions in projects amenable to bioleaching. The Company recently signed an agreement to acquire Yamana Gold Inc.'s 33% interest in 2 refractory gold deposits in Papua New Guinea.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained herein constitutes "forward-looking statements". 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 "Risks" in the Company's Management Discussion and Analysis 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.

Shares outstanding 60,107,206

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this release