Birch Mountain reports second quarter results

CALGARY, Aug. 15 /PRNewswire-FirstCall/ - Birch Mountain Resources Ltd.
("Birch Mountain" or the "Company") (BMD: TSX and AMEX) yesterday reported
financial results for the second quarter ended June 30, 2008, and they are
filed at www.sedar.com and at www.sec.gov.
Sales in the second quarter of 2008 were $5.6 million, an increase of $0.8
million or ~16% compared to sales of $4.8 million reported for the second
quarter of 2007. The Company reports a loss of $4.7 million for the second
quarter of 2008, a decrease of $1.2 million or ~20% compared to the loss of
$5.9 million reported for the second quarter of 2007. Debentures of
$59.5 million are reclassified as Current Liabilities due to the breach of
covenants and non-payment of the interest due June 30th, 2008.
Summarized unaudited consolidated financial statements for the six months
ending June 30, 2008 are reported in the tables below. To access the notes to
the summary financial statements, the Company refers readers to its complete
Second Quarter 2008 Financial Report as well as other informational
disclosures on SEDAR at www.sedar.com and/or EDGAR at www.edgar.com.
The Company continues to operate the Muskeg Valley Quarry and is delivering
limestone aggregate and reagent products to its customers in the region. As
announced on July 23, 2008, the process leading to an immediate sale or
recapitalization of the Company continues under the direction of the Special
Committee of independent directors.

Forward-Looking Statements: This news release contains certain forward-looking
statements. All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding resources and
reserves, exploration and development plans and results, anticipated capital
expenditures and financing thereof, anticipated outcomes and timing of
regulatory applications and approvals and the future plans and objectives of
Birch Mountain are forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially from
those anticipated in such statements. Certain amounts in the financial
statements are based on estimates using the best currently available
information and assumptions of management. Important factors that could cause
actual results to differ materially from Birch Mountain's expectations are
disclosed elsewhere in documents that are available to the public at
www.sedar.com and www.sec.gov.

Birch Mountain Resources Ltd.
Consolidated Balance Sheets

Canadian Dollars (000's)

UNAUDITED
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June 30, December 31,
As At 2008 2007
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Assets
Current
Bank overdraft $ (163) $ 9,493
Accounts receivable 4,614 1,821
Inventory 4,095 4,741
Prepaids and deposits 431 224

8,977 16,279

Long-term prepaid 137 137

Restricted cash 3,000 3,000

Property, plant and equipment 21,401 21,857

Mineral properties 56,210 54,765
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$ 89,725 $ 96,038
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Liabilities and Shareholders' Equity
Current
Accounts payable and accrued liabilities $ 7,523 $ 5,094
Current portion of long term debt 1,099 1,065
Deferred charges 129 129
Convertible debentures 59,522
Other current liabilities 2,374 2,389
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70,647 8,677

Long term debt 4,380 4,939
Asset retirement obligation 3,080 1,680
Convertible debentures 58,699
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78,107 73,995
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Commitments

Shareholders' equity

Share capital 49,710 49,632

Contributed surplus 14,759 14,404

Deficit (52,851) (41,993)
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11,618 22,043
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Total Liabilities and Shareholders' Equity $ 89,725 $ 96,038
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Birch Mountain Resources Ltd.
Consolidated Statements of Loss, Comprehensive Loss and Deficit
For the six months ended June 30 - UNAUDITED
Canadian Dollars (000's)

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3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
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Revenue
Sales $ 5,611 $ 4,810 $ 5,893 $ 5,669

Cost of Sales 6,931 3,742 8,299 4,491

(1,320) 1,068 (2,406) 1,178
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Expenses
Amortization, Accretion
and Depletion 606 217 1,205 438
Interest on long-term debt,
bank charges and foreign
exch. (gain)/loss 1,511 1,047 2,885 1,991
Mineral exploration costs - 122 - 230
Office 293 192 824 313
Professional fees 287 598 802 908
Indirect quarry costs 33 3,719 566 4,396
Salaries, wages and benefits 634 509 1,767 771
Shareholder services and
marketing 108 265 270 591
Stock-based compensation 28 380 355 1,195
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3,500 7,049 8,674 10,833
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Loss before other income (4,820) (5,981) (11,080) (9,655)

Interest and other income 129 68 222 115
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Net loss and comprehensive
loss for the period (4,691) (5,913) (10,858) (9,539)
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Deficit, beginning of
period (48,160) (21,112) (41,993) (17,484)

Deficit, end of period $ (52,851) $ (27,025) $ (52,851) $ (27,025)
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Loss per share
Basic and diluted (0.06) (0.07) (0.13) (0.11)
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SOURCE Birch Mountain Resources Ltd.

Company Contacts: Birch Mountain, Tel. (403) 262-1838, Fax (403) 263-9888;
Steve Chizzik, Equity Communication, Tel. (908) 688-9111; Website:
www.birchmountain.com