BacTech Announces Note Financing

TORONTO, ONTARIO, Jul 23 (MARKET WIRE) --
BacTech Mining Corporation ("BacTech" or the "Company")(TSX VENTURE: BM)
today announced that it will raise, via private placement, up to $750,000
in a 2 year, convertible, retractable note unit. Given the depressed
nature of the mining equity markets, the Company felt that it would be
prudent to issue a less dilutive instrument today rather than issue
common shares and warrants at this level. The private placement is
subject to requisite regulatory approval, including the approval of the
TSX Venture Exchange (the "Exchange").

The underlying conversion price has been set at $0.10. BacTech will have
the option to repay the note within 4 months (the "retraction"). If
BacTech wishes to exercise its retraction right, the holder of the note
will have the right to convert up to 20% of the note into common shares.
After 4 months, the holder of the note will have the conversion option.
The note holder will also be granted three warrants for each dollar
invested. Each warrant will entitle the holder to acquire one additional
common share, at a price of $0.15 for a period of two years. The interest
rate on the note will be 1.5% per month, which shall be paid
semi-annually, with the first 6 month's interest payments being placed
into escrow.

In connection with the private placement, and subject to approval by the
Exchange, a finder's fee of 5% may be paid to certain arm's length
parties.

The rationale behind the note placement at this time is as follows.

- To raise money via a common share unit at today's prices would mean the
issuance of up to 7.5 million common shares and a like amount of warrants
(15 million shares fully-diluted)

- The issuance of the note, should it be retracted within four months,
would result in the potential issuance of up to 1.5 million common shares
and up to 2.25 million warrants (3.75M shares fully-diluted).

- The four month time period allows the Company to close additional
transactions (which would additionally be subject to requisite regulatory
approval, including without limitation, the approval of the Exchange) to
add more value to the Company and thus the price of the Company's common
shares. A future financing, hopefully at a higher common share price, can
be conducted in a market that might be more receptive to purchasing
resource-based equities.

- The ability to raise capital in the summer months is inhibited by the
reduced level of activity in the stock markets.

Part of the proceeds of the note will be used to produce an NI 43-101
compliant resource statement for assets recently acquired from Yamana
Gold Inc. ("Yamana") in Papua New Guinea ("PNG"), as announced on June
18, 2008. The transfer of title of the PNG assets from Yamana is subject
to requisite regulatory approval including, without limitation, the
approval of the Exchange, as well as PNG governmental approval.

It is likely that BacTech will require shareholder approval to complete
the acquisition as, according to the rules of the Exchange, the
acquisition is a reviewable transaction. It is expected that the approval
of shareholders will be sought in respect of such transaction and that
this will be procured by the Corporation by written shareholder approval
and the filing of a filing statement in accordance with the rules of the
Exchange. It is expected that final PNG government approval will be
obtained by September 2008.

BACTECH PROFILE

BacTech has developed and patented bacterial oxidation technology for the
treatment of refractory ores and concentrates to enhance the recovery of
gold, silver and base metals. BacTech has successfully commissioned three
bioleach plants for gold and demonstrated its technology in the selective
recovery of base metals from complex sulphide concentrates in a joint
project with Industrias Penoles de C.V. of Mexico that was completed in
2001. The Company's focus is the acquisition of equity positions in
projects amenable to bioleaching. The Company recently signed an
agreement to acquire Yamana Gold Inc.'s 33% interest in 2 refractory gold
deposits in Papua New Guinea.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain
information contained herein constitutes "forward-looking statements".
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 "Risks" in the Company's
Management Discussion and Analysis for the Year Ended December 31, 2007.
Circumstances or management's estimates or opinions could change. The
reader is cautioned not to place undue reliance on forward-looking
statements.

Shares outstanding 60,107,206

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

Contacts:
BacTech Mining Corporation
Ross Orr
President & CEO
(416) 813-0303 ext 222
(416) 596-9840 (FAX)
Email: info@bactech.com
Website: www.bactech.com

Investor Relations:
Pierre Anglos
1-800-436-2027
Email: capitalgainsco@shaw.ca

Copyright 2008, Market Wire, All rights reserved.

-0-