BioteQ Reports Q2 2011 Operating and Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2011) - BioteQ Environmental Technologies Inc. (TSX:BQE), a leader in the treatment of industrial waste water, reports its unaudited financial and operating results for the three and six months ended June 30, 2011. All figures are in Canadian dollars and are in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

Operating and financial results highlights for Q2 2011:

• BioteQ has active water treatment operations in China and the US and seasonal operations in Canada; these operations generate recurring revenues. The Company is also involved in several engineering, design, construction and piloting projects at various stages of completion; these projects generate one-time revenues. Recurring revenues for the quarter were generated by copper recovery at the Dexing plant in China, and fee-based water treatment operations at the Raglan site in Quebec. One-time revenues were driven by engineering projects for new plants that are expected to enter into construction later in 2011 and in 2012.
• Total revenues for the period were $1.4 million compared to $1.9 million in 2010. Year to date, revenues totaled $2.7 million compared to $4.5 million in 2010. The decrease in revenue was mainly attributable to lower copper production at the Dexing plant in China during 2011, and higher one-time revenues in 2010 from a plant sale. Management anticipates that new projects currently in development will drive significant revenue growth in the last half of 2011 and into next year to meet the Company's revenue growth targets.
• Operating income for the quarter was $569,000 compared to $995,000 in 2010. Year to date, operating income is $787,000 compared to $1.6 million in 2010. The decrease was largely due to the same items that impacted revenue.
• The net loss for the quarter was $737,000, compared to a loss of $567,000 in 2010. The comprehensive loss for the quarter was $915,000 compared to $152,000 in 2010. Year to date, the comprehensive loss is $2.2 million compared to $863,000 in 2010.
• BioteQ ended the period with $11.3 million in working capital which included $11 million in cash and short-term investments. At December 31, 2010, those balances were $13.8 million and $12.6 million respectively. The Company has no debt.
• During the quarter, BioteQ commenced commissioning of a new 800 cubic meter per hour ion exchange plant for recovery of cobalt and nickel from low-grade solution at the Dexing site in China. Commissioning is progressing, with completion expected by the end of the third quarter.
• BioteQ entered into a fee-based contract with Compania Minera Maricunga, a wholly-owned subsidiary of Kinross Gold, to provide process review and commissioning services for a SART plant currently under construction at the Maricunga Mine located in Chile. BioteQ's services include engineering and operations review, preparation of operating manuals and procedures, training of local operators, and on site engineering supervision of the SART plant operation during commissioning. Services under the contract began during the quarter and are expected to be completed in early 2012.
• BioteQ has completed engineering for a 6,500 m³/h zinc recovery plant with capacity to recover 130 million pounds of zinc, on behalf of a mining customer. BioteQ has earned engineering and design fees. Project execution is subject to customer approvals and schedule.
• BioteQ is continuing its litigation efforts for the plants in Mexico and Australia to recover the value of the Company's assets.
• During the quarter, the Company announced the retirement of its Chief Executive Officer and director ("CEO"). The CEO will remain with the Company in his current role until a permanent successor is appointed. The Board of Directors has established a CEO Search Committee, and has retained the services of an international executive search firm, with a mandate to seek out a seasoned leader who can accelerate BioteQ's growth. The Board has reviewed the qualifications of potential candidates, developed a short-list, and carried out initial interviews. A final decision is expected early this fall.
• Subsequent to quarter end, BioteQ signed an agreement with a European engineering firm to advance a cyanide regeneration and recovery project that incorporates a SART process plant to be designed and provided by BioteQ at a gold mine site in Central Asia. Test work followed by process design is expected to commence in the third quarter. Negotiations of the final commercial terms and timeline for construction are expected by the end of the year pending customer requirements.
• In July 2011, BioteQ entered into a framework agreement with Minera México, S.A. de C.V., a subsidiary of Grupo México S.A.B. de C.V., to provide water treatment solutions at their selected sites. Under the agreement BioteQ will provide process design and commissioning services as well as plant equipment on a process fee basis, in return for a license to use BioteQ's technology for each treatment project. Minera México will provide for construction of the treatment plants. The companies have initiated the review of the first ten potential treatment projects at three of Minera México's sites in Mexico.
• BioteQ has 12 additional projects in the development pipeline for 2011, 2012, and 2013 which are subject to customer approval, including three additional SART projects, expansion of an existing water treatment plant for a current customer, a new water treatment plant at an active mine to treat up to 650 m³/h, a new water treatment plant for a new mine to treat up to 730 m³/h, two multi-stage water treatment plants for a new mine to treat up to 1,800 m³/h, two Sulf-IX™ projects ranging in size from 30 to 300 m³/h, and two portable metal recovery plants.

BioteQ's 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 Friday August 5^th at 11:00 am Eastern. Participants can access the call by dialing 416-340-2217, or 1-866-696-5910, reference number 3277435. A playback of the call will be available until August 19^th by dialing 905-694-9451, reference number 2127682. A recording will be available on the BioteQ website within two days of the call.

BioteQ Corporate Profile

BioteQ creates custom water treatment solutions to recover dissolved metals and remove sulphate from water impacted by mining, energy and industrial activities. The company's clean technologies convert wastewater into a useful resource while delivering lower life cycle costs for water treatment. BioteQ has designed and commissioned 14 plants at sites in Canada, the US, Mexico, Australia and China, with additional projects in development.

BioteQ continues to diversify its technology offering to address challenging water treatment problems in mining, oil and gas, and power generation. The Company is actively marketing its new Sulf-IX™ technology to address tightening regulations for sulphate discharge. The Company's portfolio of metal recovery technologies has expanded to include specialty applications of ion exchange to recover valuable metals. In addition, BioteQ maintains an active research and development program to develop new treatment technologies for emerging water treatment concerns.

BioteQ's sustainable water treatment solutions have been recognized with national and international awards for innovation and sustainability. BioteQ is headquartered in Vancouver, Canada, and trades on the TSX under the symbol BQE. For additional information, please visit our website at www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Statement of Financial Position
Unaudited
	Jun 30, 2011	Dec 31, 2010
	$	$
Assets
Current assets
Cash and cash equivalents	7,333,682	4,653,465
Short-term investments	3,686,902	7,957,391
Trade receivables	1,437,143	1,676,963
Receivable from joint venture partners	129,532	180,204
Net insurance proceeds receivable (note 8)	629,256	618,248
Taxes recoverable	-	15,469
Inventory (note 9)	80,099	54,723
Prepaid expenses	208,908	241,089
	13,505,522	15,397,552
Non-current assets
Property, plant and equipment (note 10)	7,240,234	6,671,046
Intangible asset	85,168	100,654
Total assets	20,830,924	22,169,252
Liabilities
Current liabilities
Accounts payable and accrued liabilities	2,129,733	1,544,901
Taxes payable	76,118	-
Deferred lease inducement	33,153	47,362
	2,239,004	1,592,263
Non-current liabilities
Long-term liabilities	107,487	46,884
Total liabilities	2,346,491	1,639,147
Shareholders' Equity
Capital stock and warrants (note 11)	55,269,417	55,182,229
Contributed surplus (note 11)	8,085,925	8,045,826
Accumulated other comprehensive loss	(1,603,247)	(1,482,945)
Deficit	(43,267,662)	(41,215,005)
Total shareholders' equity	18,484,433	20,530,105
Total liabilities and shareholders' equity	20,830,924	22,169,252
Commitment (note 18)

For a complete set of consolidated financial statements including accompanying notes, go to www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Statements of Operations and Comprehensive Loss
For the three and six months ended June 30, 2011 and 2010
Unaudited
	3 months ended June 30,			6 months ended June 30,
	2011	2010		2011	2010
	$	$		$	$
Revenue	1,406,041	1,949,090		2,729,971	4,486,995
Plant and other operating costs (other than depreciation)	837,061	953,795		1,943,099	2,872,764
	568,980	995,295		786,872	1,614,231
General and administration	1,051,191	722,029		1,987,595	1,441,615
Marketing and development	217,717	262,699		340,725	568,509
Stock-based compensation (note 11)	27,903	150,590		70,403	280,128
Depreciation of property, plant and equipment (note 10)	151,843	209,478		300,490	416,480
Amortization of intangible asset	7,743	7,743		15,486	15,486
Loss before the under-noted	(887,417)	(357,244)		(1,927,827)	(1,107,987)
Interest income	23,780	9,763		50,778	14,650
Other income	-	33,082		-	72,444
Lease fee income	-	247,119		-	485,890
Foreign exchange gain (loss)	204,747	(403,308)		(597)	(496,365)
Loss before income taxes	(658,890)	(470,588)		(1,877,646)	(1,031,368)
Income taxes (note 12)	78,316	95,840		175,011	183,296
Net loss for the period	(737,206)	(566,428)		(2,052,657)	(1,214,664)
Other comprehensive income (loss)
Cumulative translation adjustment	(178,182)	415,180		(120,302)	350,739
Comprehensive loss for the period	(915,388)	(151,248)		(2,172,959)	(863,925)
Net loss per share
Basic and diluted	(0.01)	(0.01)		(0.03)	(0.02)
Weighted average number of shares outstanding
Basic	69,955,188	69,854,752		69,930,714	69,391,903
Diluted	70,207,985	69,932,596		70,292,453	69,679,433

For a complete set of consolidated financial statements including accompanying notes, go to www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Statement of Changes in Equity
For the three and six months ended June 30, 2011 and 2010
Unaudited
	Share capital and warrants	Contributed surplus	Accumulated other comprehensive income (loss)	Deficit	Total
	$	$	$	$	$
Balance - January 1, 2011	55,182,229	8,045,826	(1,482,945)	(41,215,005)	20,530,105
Stock-based compensation	-	70,403	-	-	70,403
Exercise of options (note 11)	87,188	(30,304)	-	-	56,884
Net loss for the period	-	-	-	(2,052,657)	(2,052,657)
Other comprehensive income for the period	-	-	(120,302)	-	(120,302)
Balance - June 30, 2011	55,269,417	8,085,925	(1,603,247)	(43,267,662)	18,484,433
Balance - January 1, 2010	51,148,380	7,586,362	-	(30,286,323)	28,448,419
Issuance of capital stock and warrants (note 11)	4,000,000	-	-	-	4,000,000
Stock-based compensation	-	280,128	-	-	280,128
Exercise of options (note 11)	25,018	(8,585)	-	-	16,433
Net loss for the period	-	-	-	(1,214,664)	(1,214,664)
Other comprehensive loss for the period	-	-	350,739	-	350,739
Balance - June 30, 2010	55,173,398	7,857,905	350,739	(31,500,987)	31,881,055

For a complete set of consolidated financial statements including accompanying notes, go to www.bioteq.ca.

BioteQ Environmental Technologies Inc.
Consolidated Statement of Cash Flow
For the three and six months ended June 30, 2011 and 2010
Unaudited
		3 months ended June 30,			6 months ended June 30,
		2011	2010		2011	2010
		$	$		$	$
Cash flow provided by (used in)
Operating activities
Net loss for the period		(737,206)	(566,428)		(2,052,657)	(1,214,664)
Items not affecting cash:
	Depreciation of property, plant and equipment	151,843	209,478		300,490	416,480
	Amortization of intangible asset	7,743	7,743		15,486	15,486
	Amortization of deferred lease inducement	(7,104)	-		(14,209)	-
	Unrealized foreign exchange (gain) loss	(72,462)	615,255		(124,275)	567,112
	Stock-based compensation charge (note 11)	27,903	150,590		70,403	280,128
		(629,283)	416,638		(1,804,762)	64,542
Change in non-cash working capital items (note 13)		372,391	(187,818)		976,202	(38,023)
Net cash provided by (used in) operating activities		(256,892)	228,820		(828,560)	26,519
Investing activities
Purchase of property, plant and equipment		(332,969)	(312,853)		(868,922)	(317,586)
Purchase of short-term investments		(3,679,908)	(6,038,444)		(6,072,880)	(12,083,469)
Proceeds from sale of short-term investments		5,557,673	6,044,369		10,340,881	8,892,310
Repayment of loan receivable		-	150,000		-	300,000
Net cash provided by (used in) investing activities		1,544,796	(156,928)		3,399,079	(3,208,745)
Financing activities
Proceeds from exercise of options		30,652	1,934		56,884	16,434
Proceeds from issuance of capital stock and warrants		-	-		-	4,000,000
Increase (decrease) in long-term liabilities		(64,342)	-		60,603	-
Net cash provided by financing activities		(33,690)	1,934		117,487	4,016,434
		1,254,214	73,826		2,688,006	834,208
Effect of exchange rate changes on cash and cash equivalents		(70,225)	(70,060)		(7,789)	(2,273)
Increase in cash and cash equivalents		1,183,989	3,766		2,680,217	831,935
Cash and cash equivalents
	Beginning of period	6,149,693	3,319,471		4,653,465	2,491,302
	End of period	7,333,682	3,323,237		7,333,682	3,323,237

For a complete set of consolidated financial statements including accompanying notes, go to www.bioteq.ca.

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, 2010. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.