BacTech Announces Joint Venture MOU With Medusa Mining Limited for the Philippines.

TORONTO -- JV to Target Refractory Gold/Copper Ores

BacTech Mining Corporation ("BacTech") (TSX VENTURE:BM) today announced that it has signed a Joint Venture Memorandum of Understanding ("JV") with Medusa Mining Limited ("Medusa") of Perth, Western Australia. The focus of the JV will be the identification of refractory gold-copper deposits in the Philippines that are amenable to BacTech's bioleaching process. The terms of the agreement call for an equal ownership of any projects that are generated by the JV.

The agreement will be in force for an initial 3 year term and will commence with test work on samples currently being obtained by Medusa from the Dizon tailings project near Manila. BacTech will provide its technology to the JV exclusively in the Philippines. It is the intention of the JV to vend economically viable projects into a newly created corporate entity to be owned equally by BacTech and Medusa.

DIZON TAILINGS

The Dizon tailings will be the first project to be evaluated by the two parties. Past test work conducted by previous operator, Benguet Corporation, on the tailings after extraction of copper concentrates, indicated that gravity methods could produce a refractory sulphide-rich concentrate with high gold values. Medusa has initiated a drill sampling program designed to obtain metallurgical samples on which BacTech will undertake amenability test work.

The project is located 200 kms northwest of Manila near Subic Bay and approximately 23 kms from the town of Olongapo, an area that hosts the Dizon porphyry copper-gold mine, and the Acoje chromite and nickel-copper-platinoid mines. Historical records for the Dizon tailings estimate that the contained metal could be 1.3 million ounces of gold, 6 million ounces of silver and over 300 million pounds of copper contained in approximately 110 million tonnes of tailings. It should be stressed that these are third party estimates and are not compliant with National Instrument 43-101.

On May 27, 2004, Medusa signed an option agreement with Dizon Copper and Silver Mines Incorporated of Manila ("DCSMI"), the owner of the Dizon tailings. Medusa's agreement with DCSMI calls for Medusa to conduct a study evaluating the economic potential of the project. If the project is deemed to be feasible, Medusa will exercise its option to acquire a 60% stake in a newly formed JV with DCSMI owning 40%. In the event DCMSI contributes less than 10% of the necessary capital to put the project into production, their interest will be converted to a 3% NSR. (For additional information, please see www.bactech.com under "Projects".)

CORPORATE PROFILE

BacTech has developed and patented bioleach 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, in 2000, successfully 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 also has an option to acquire 100% of the McKinnon Creek polymetallic deposit near Revelstoke, British Columbia. Finally, BacTech entered into a series of agreements that will see the Company participating in the Chinese gold industry through equity and project participation.

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. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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