BioteQ Reports Q2 2016 Financial and Operating Results

VANCOUVER, BC--(Marketwired - August 17, 2016) - BioteQ Environmental Technologies Inc. (TSX VENTURE: BQE), a leader in the treatment of mine impacted waters, releases its financial and operating results for the second quarter ended June 30, 2016. Further information on the quarterly results can be obtained from the Company's Q2 2016 Interim Consolidated Financial Statements and Management's Discussion and Analysis ("MD&A").

To ensure clarity and comparability with historic results, certain statements in this news release and in the MD&A are characterized as BioteQ's "proportional" share, which means the effective portion of results that BioteQ would have reported if each of its joint ventures had been reported in accordance with past accounting standards. For further details, please see "Non-GAAP Financial Measures" in the Company's Q2 2016 MD&A.

Q2 2016 Financial Results
The Company reported the following results for the second quarter:

• Revenues as reported under GAAP were $644,000 compared to $286,000 in Q2 2015;
• Proportional revenues were $2.4 million compared to $2.3 million in Q2 2015, an increase of 5% compared to the same period in the prior year;
• Results for the quarter includes a one-time, non-cash, foreign exchange loss of approximately $1.4 million. This adjustment is a result of cumulative foreign exchange adjustments related to the company's Australian subsidiary;
• Net loss as reported under GAAP was $1.6 million compared to $306,000 in Q2 2015;
• Adjusted income before interest, tax, depreciation and amortization ("adjusted EBITDA") was $71,000 compared to a loss of $49,000 in Q2 2015;
• Cash and cash equivalents reported under GAAP as of June 30, 2016 was $316,000 compared to $1,409,000 at December 31, 2015; and
• Proportional cash and cash equivalents and short term investments, which includes our share held in joint ventures, as of June 30, 2016 was $892,000 compared to $2.1 million at the end of 2015.

Financing
Subsequent to the end of Q2 2016, BioteQ completed a convertible loan ("Loans") for gross proceeds of $1.5 million. The Loans are secured and bear interest at a rate of 8% per annum. Upon repayment of the Loans, each lender may elect to convert all or any portion of the repaid principal into common shares of BioteQ at a conversion price of $0.06 cents per share.

The proceeds of the Loans will be used to fund general operating expenses and ensure BioteQ has the financial resources to continue executing on its longer term growth strategy.

Water Treatment Operations

• During the quarter, BioteQ commenced its 13^th season of water treatment operations at the Raglan Mine site in Quebec. During the quarter, BioteQ treated 42,000 cubic metres of water. BioteQ expects to conclude the season's operations by mid-Q4 of this year.
• BioteQ's joint venture in China with partner Jiangxi Copper Company ("JCC") operated three plants during the quarter. Two of the plants are located at the Dexing Mine site as well as a plant at the Yinshan Mine site. Both mine sites are owned by JCC. The joint venture treated a total of 6.7 million cubic metres of water and recovered 1.3 million pounds of copper from all three sites during the quarter.

Sales and New Technology Development
The following is an update on key sales opportunities in progress:

Design, Construction, and Commissioning Services
In Q2 2016, BioteQ continued providing commissioning services for a water treatment plant at the Silvertip project in Northern BC. The plant has been commissioned and is available for water treatment operations.

Lab Testing Contracts
During the quarter, BioteQ completed contracts with customers in Canada and Latin America to perform lab scale testing of our technologies at various mine sites. These tests will allow the customers to assess BioteQ's technologies and provide high level cost estimates for a possible full scale plant. If results prove favourable, it may lead to additional services including pilot scale testing, design, construction, and operation of a full scale plant in the future.

Consulting
During the quarter, BioteQ continued to provide water management consulting services for a mine site in Mongolia. BioteQ's scope of services include the design and operation of weather and water measurement systems and analysis. BioteQ expects to conclude its scope and provide a final report by the end of the year. Based on results, BioteQ will propose long term water management systems to the client.

Zinc and Copper Recovery - Joint Venture
BioteQ completed its detailed technical and economic assessment of a new treatment plant to be installed at an active smelter in China. The proposed new treatment plant has completed environmental permitting and BioteQ is working closely with a potential new partner on forming a joint venture to deliver the treatment plant for the smelter under a Build-Own-Operate business model. Once final terms are agreed upon, BioteQ expects to commence construction in Q3 2016 and commissioning and operations in early 2017. Under current terms being negotiated, BioteQ expects to receive a fixed-fee, technical support contract and an ongoing share of the profits from the operation.

Q1 2016 COMMENTARY AND 2016 OUTLOOK
In the first half of 2016, BioteQ won contracts to provide design, construction, and commissioning services for several projects to advance opportunities BioteQ expects will lead to long term recurring revenues. While many of these contracts are relatively small in monetary value, they represent the initial stages of longer term projects where BioteQ can expect to generate significantly more revenue as the projects advance through the development stages.

For the remaining half of 2016, the most significant opportunities BioteQ is pursuing include a Selen-IX™ pilot campaign with a new Canadian based customer, completion of detailed design and engineering for a SART project in Mexico, and beginning construction of the zinc/copper recovery plant in China with its new joint venture partner.

Although these projects provide significant opportunities for future one-time and recurring revenues, the short term cash flow potential is limited. As a result, subsequent to the end of Q2 2016, BioteQ completed a $1.5 million financing with various lenders including major shareholders, directors, executives and employees of the company. The funds will be used to meet current working capital needs to ensure that BioteQ's management has the financial resources to continue executing on its longer term growth strategy.

Q2 2016 Financial Highlights Summary
For a complete set of Financial Statements and Management Discussion and Analysis, please go to www.bioteq.ca

BioteQ Corporate Profile
BioteQ is a service provider that specializes in treating mining wastewater and specific hydrometallurgical streams with the focus on reducing Life Cycle Costs while achieving compliance and introducing sustainability into water management. We have extensive expertise and operations experience in sulphide precipitation, ion exchange, alkali/lime neutralization and SART process technologies. Over the past decade, BioteQ has designed and commissioned plants at mine sites for leading organizations including Glencore Canada, Freeport-McMoRan, Jiangxi Copper and the US EPA and is currently operating six plants under long-term contracts. These plants remove dissolved metals and sulphate to well below the required regulatory discharge limits while reducing or eliminating the production of waste sludge and/or recovering valuable metals from waste streams for sale which reduces the life cycle cost of water treatment. BioteQ is headquartered in Vancouver, Canada and trades on the TSX Venture Exchange under the symbol BQE. Please visit our website at www.bioteq.ca for additional information.

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

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Certain information contained herein may not be based on historical fact and therefore constitutes "forward-looking information" under applicable Canadian securities legislation. This includes without limitation statements containing the words "plan", "expect", "project", "estimate", "intend", "believe", "anticipate", "may", "will" and other similar words or expressions. 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, uncertainties and other factors that may cause actual events or results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the Company's dependence on key personnel and contracts, uncertainty with respect to the profitability of the Company's technologies, competition, technology risk, the Company's ability to protect its intellectual property and proprietary information, fluctuations in commodity prices, currency risk, environmental regulation and the Company's ability to manage growth and other factors described in the Company's filings with the Canadian securities regulators at www.sedar.com (including without limitation the factors described in the section entitled "Risks and Uncertainties" in the Company's MD&A for the year ended December 31, 2015). Given these risks and uncertainties, the reader is cautioned not to place undue reliance on forward-looking statements. All forward-looking information contained herein is based on management's current expectations and the Company undertakes no obligation to revise or update such forward-looking information to reflect subsequent events or circumstances, except as required by law.