BacTech Environmental Corporation announced that it has signed letters of intent (LOIs) with several government-licensed gold mining cooperatives for initial orders to deliver up to 58 tonnes per day of arsenopyrite gold concentrates at a cutoff grade of 50 grams per tonne. The Company will negotiate final commercial terms and execute definitive supply agreements prior to commissioning of the Tenguel bioleaching plant. The agreements cover production from 3 mines/processors and were signed on July 5, 2022 and July 12, 2022 .Strategically situated to meet the processing needs of 90+ area government-licensed gold mining producers and companies, the project will be a regional hub for BacTech's proposed bioleaching processing plant for gold and silver recovery.

Ecuador's Ministry of Energy and Non-Renewable Resources has already issued a permit for plant construction, while preliminary Detailed Engineering plans project an initial 20-acre plant footprint that allows for future expansion opportunities without disruption to existing production. The Ponce Enriquez mining area is characterized by very high grades of refractory arsenopyrite-rich material. BacTech will continue to selectively negotiate for the purchase of additional high gold/arsenic concentrates.

The intent is to return local miner compensation back to previous payment levels prior to severe price declines resulting from Chinese government-directed import taxes placed on inbound arsenic gold concentrates. Presently, area miners have no choice but to sell their production at reduced prices to offshore buyers. BacTech intends to eliminate financial penalties charged for arsenic and consequently pay better prices for the miners' material.

The Letters of Intent are non-binding and final commercial terms have not been executed in a definitive supply agreement.