BacTech Provides Tonkin Springs Update.

TORONTO -- BacTech Mining Corporation (TSX VENTURE:BM) ("BacTech") closed the purchase of a 55% interest in the Tonkin Springs gold project on July 31, 2003. The initial purchase price was US$1,750,000, of which US$1,125,000 has been advanced to U.S. Gold Corporation ("USG", the vendor). BacTech will continue to make US$62,500 monthly payments to U.S. Gold until the purchase price is satisfied, which is anticipated to be June 30, 2005.

An independent engineering firm, Micon International Limited ("Micon") completed a feasibility study in April 2004. On the basis of the engineering and cost studies discussed in the feasibility study, Micon concluded that the Tonkin Springs project was both technically and economically viable and recommended commercial development. Subsequent to the completion of the feasibility study on Tonkin Springs, BacTech Mining Corporation has been completing confirmatory metallurgical test work on fresh ore samples from deeper portions of the deposit. The preliminary results from this test work indicate that the deeper ore may require finer product sizing and increased reagent consumptions than the samples previously tested. These early results suggest that the production plan outlined in the feasibility study may not be achievable at the projected cost reported by Micon. BacTech is continuing to test additional samples, examining these new test results and determining the impact on the current production plans. Dr. Paul Miller of BacTech Australia is conducting the test work.

Given the uncertain conditions in the equity markets and the Company's desire to reduce capital outlays at this time, the Environmental Impact Study ("EIS") has advanced at a reduced pace pending results of the current mining and metallurgical investigations. The Company has also deferred its exploration program, announced June 14, 2004. Given the increased level of exploration activity surrounding the Tonkin Springs property on the Cortez Trend, the Company feels it is prudent to restructure its current exploration program to include an investigation of the Lower Plate geology.

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 commissioned three commercial bioleach plants for gold, and in 2000, successfully demonstrated its technology in the selective recovery of base metals from complex sulphide concentrates.

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 has also acquired an option on 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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