TORONTO, ONTARIO -- (Marketwire) -- 08/07/08 -- BacTech Mining Corporation ("BacTech" or the "Company", (TSX VENTURE: BM) is pleased to announce that it has closed on $530,000 of subscriptions for the first tranche of its recently announced convertible note financing (see press release: July 23, 2008).

The net proceeds of the financing will be used to produce an NI 43-101 compliant resource statement for assets recently acquired from Yamana Gold Inc. in Papua New Guinea, as announced on June 18, 2008, and to fund the Company's general working capital requirements for the remainder of the year.

Under the terms of the private placement, BacTech issued units, with each unit being comprised of a 2-year $10,000 principal convertible redeemable note and 50,000 common share purchase warrants. Under the terms of the 2-year note, BacTech will have the option to redeem the notes in full within 4 months, in which case the holder of the note will have the option to convert 20% of their holdings into common shares at a price of $0.10 per share. After 4 months, the holder of the note will have the option to convert the notes in full into common shares at a price of $0.10 per share. Each warrant is exercisable for one common share at a price of $0.15 per common share until August 7, 2010, provided that 20,000 of the warrants comprising each unit will only become exercisable in the event that BacTech does not redeem the notes within 4 months or repay the notes within 6 months. In the event that BacTech does redeem or repay the notes within the prescribed time periods, the 20,000 warrants comprising each unit shall automatically expire.

A finder's fee of 5% will be paid to arm's length parties on a portion of the subscriptions.

The securities issued in connection with the private placement are subject to a statutory four-month hold period that expires December 8, 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.

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.