BacTech Releases Six Month Results and Updates Operations Progress.

TORONTO--(BUSINESS WIRE)--May 13, 1998--BacTech Metallurgica(CANADIAN DEALING NETWORK:BACO.) BacTech Metallurgical Solutions Limited reports results for the fiscal six months ended March 31, 1998.

Revenues for the period were $169,474 ($348,336 for the same period in 1997), with an operating loss of $635,477 ($475,706 in 1997) or $0.08 per share ($0.13 in 1997). The reduction in revenue reflects the strategy of evaluating and acquiring interests in projects which has resulted in reduced service revenue.

BacTech is pleased to report the following progress of operations at March 31, 1998.

OPPORTUNITIES

There are currently seven joint venture opportunities being evaluated with draft heads of agreements being reviewed on two. These gold and copper projects are in Mexico, USA, Canada, Australia and Saudi Arabia. Laboratory scale testwork has been conducted on two projects with greater than 95 percent recoveries.

Three are currently in production and sending concentrate to smelters for metal extraction. Evaluation by BacTech indicates that construction of concentrate treatment facilities at the various sites using the Company's proprietary technology will significantly improve the viability of these projects. It is anticipated that at least one joint venture opportunity will be formalized and an agreement signed by the end of the third quarter.

BacTech has also identified and is evaluating a number of other projects which would be amenable to the future development of the technology. The Company intends to negotiate option agreements on the most promising of these projects. Research and development programs will be conducted on a project specific basis to create immediate value.

MANAGEMENT CHANGES

During the quarter BacTech resolved to strengthen the management of the Company and is pleased to advise that the following changes will take effect during the third quarter ending June 30, 1998: - Change of Director

Mr. Dennis A. Sharp has agreed to join the board of directors and will replace Mr. Cameron Mingay, our legal counsel. Mr. Sharp is a graduate of Queen's University in geological engineering and has extensive experience in the public and private sectors. He founded CS Resources Limited which became a very successful public company utilizing revolutionary horizontal drilling, completion and production technologies developed by the company to exploit heavy oil and bitumen resources. CS Resources was acquired by Pan Canadian Petroleum Limited in July 1997.

Mr. Sharp is a director of United Tri-Star Resources Ltd., Pan Canadian Petroleum Limited and BC Research Inc. He is a member of The Alberta Association of Professional Engineers, Geologists and Geophysicists, Canadian Institute of Mining, Metallurgy and Petroleum and the Canadian Society of Petroleum Engineers. He was honoured as one of Canada's Master Entrepreneurs in 1997.

- Change of CFO and Secretary

Mr. Roderick Chisholm has agreed to become Chief Financial Officer and Secretary of the Company. He will replace Mr. Geoff Donohue and Mr. Peter Ironside.

Mr. Chisholm is a Chartered Accountant having 20 years experience with junior public companies mainly in the mining industry. He will be responsible for the financial and corporate affairs of the Company.

CORPORATE DEVELOPMENTS

Discussions to form a strategic relationship with one of several major North American mining companies commenced during the quarter. It is anticipated that a formal relationship could be concluded by the end of the third quarter. BacTech believes such a relationship to be of significant strategic benefit for the following reasons:

-project referrals ;
-a strong partner for larger project opportunities;
-related expertise and technologies; and
-the credibility of having such a partner.

TECHNOLOGY DEVELOPMENTS

The Company has advanced its technology on several fronts during the quarter. The copper leaching pilot plant operating at Mt. Lyell, Australia has continued to produce copper recoveries greater than 95 percent with relatively short residence times. The operation of this plant will continue until September 1998. The aim is to reduce residence times further whilst maintaining recoveries. These good results are being duplicated under slightly different operating conditions in the Johannesburg laboratories of our associates Mintek. The technology is now ready to be commercialized by way of a larger scale demonstration plant.

Work has also progressed on the development of two novel reactors (patent applied for) that have the potential to significantly reduce both capital and operating costs of plants.

Several other innovations have recently been developed for which provisional patents have been applied. These are expected to lead to more business opportunities for BacTech.

COMPANY PROFILE

BacTech owns and operates commercially proven and patented bacterial oxidation technology for use in the extraction of precious and base metals from difficult to process refractory ores and concentrates. The technology is amenable to a wide range of metals including gold, copper, nickel, cobalt, zinc and polymetallics. The Company is using its technology to earn royalty and license fee income and joint venture interests in projects. The technology has significant capital and operating cost advantages over competing technologies and the residue is environmentally stable. The Company presently has 8,280,099 common shares issued and outstanding.

CONTACT: BacTech Metallurgical Solutions Limited

Ross Orr, Toronto, 416/366-1666

or

BacTech Metallurgical Solutions Limited

Geoff Donohue, Toronto, 416/366-1666

or

BacTech Metallurgical Solutions Limited

Peter Ironside, Australia, 011/6189-479-3099