BioteQ Provides an Update on Operations and Development Projects

VANCOUVER, July 5 /CNW/ - BioteQ Environmental Technologies Inc.      
(TSX-V:BQE) reports on progress at its operations as well its construction
projects scheduled during 2005:

-   Raglan plant continues to perform well after early start to operating
    season
-   Modified lime circuit at Caribou successfully commissioned to reduce
    lime sludge
-   New tailings treatment plant at Caribou in commissioning phase
-   Bisbee plant reports slow re-start after scheduled routine
    maintenance shut-down
-   Blackwell project on schedule with plant module completion expected
    in August
-   Safety record at all operations maintained with no reported incidents


Raglan Plant - Early Startup Followed by Excellent Operating Results
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BioteQ's Raglan plant, located in Northern Quebec at the Raglan Mine
which is owned by Falconbridge, started operation in May, as previously
reported. Since the early startup this year, the plant has performed
exceptionally well with 89% operating availability during the May start-up and
98% availability in June. Nickel recovery has been over 95% since startup and
the plant will have discharged over 100,000 cubic meters of water to the
environment in the second quarter, which is higher than budget. Plant
consumable costs have been lower than budget, although overall operating costs
are higher due to temporary generator rental costs and additional labour
allocated to the plant during the initial stages of operation this year. The
temporary rental generator has now been replaced with a BioteQ owned unit. A
brief maintenance shutdown has been scheduled for early July to install a new
feed pump to increase the overall capacity of the treatment plant by 50%,
which should improve the project economics significantly. BioteQ is paid
treatment fees based on the volume of water treated and pays only for
operating labour.

Caribou Plant - First Stage of Expansion Completed, Second Stage in
Progress
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The first stage of the expansion plan at Caribou was successfully
commissioned in May with the startup of the High Density Sludge (HDS) lime
circuit. The HDS plant was built to improve lime utilization efficiency and
reduce the volume of sludge produced in the lime circuit. The water chemistry
has changed since the original plant design with a higher metal demand. The
HDS circuit has resulted in a significant increase in water treatment
capacity, from approximately 150 gallons per minute to over 300 gallons per
minute, as well as reduced operating costs. BioteQ designed and constructed
the HDS plant in eight weeks. CanZinco, the property owner, paid for the
construction costs.
The second stage of the expansion plan at Caribou, a 50,000 tonne per
year tailings treatment circuit, is now in the commissioning stage. CanZinco
has agreed to an annual treatment fee of $165,000 for tailings treatment.
BioteQ is paying for the tailings treatment plant, budgeted at $186,000
including commissioning.
Operating costs at Caribou were still higher than expected in the second
quarter, primarily due to heavy rainfall and changing water chemistry, but the
recently completed plant improvements are expected to reduce costs and improve
the project economics in the future.

Bisbee Plant - Downtime Experienced in June
--------------------------------------------
After an excellent production month in April and the first three weeks of
May copper production at the Bisbee joint venture with Phelps Dodge Corp
during late May and June have been well below budget due to unexpected plant
downtime. Following a brief planned shutdown in late May for routine
maintenance the bioreactor did not re-start as quickly as normally expected,
likely due to contamination in the sulphur reagent used in the plant. The
plant is expected to reach previous production levels and plant availability
by early July. Copper levels in the plant feed remain steady and copper
recovery from solution continues to be over 99%.

Blackwell Construction
----------------------
The Blackwell plant module fabrication is in progress with expected
completion on schedule in August for delivery to the construction site. BioteQ
is proceeding with the construction of process modules in Vancouver while site
activities are in progress under the direction of Phelps Dodge Corp and M3
Engineering. Site construction is subject to completion of required permits.

Wellington Oro Project
-----------------------
The Wellington Oro project, in Breckenridge, Colorado, is proceeding to
the first stage of plant engineering. The first stage will include
confirmatory testing at the site in cooperation with the US EPA, to provide
additional design details for plant engineering.

Overall Performance
-------------------
After reporting a profit from operations for the last quarter of 2004 and
the first quarter 2005, it is expected that the Company will report a small
loss from overall operations during the second quarter. Operating revenue is
expected to increase during the second quarter, primarily due to the start of
2005 operations at the Raglan plant, however, higher operating costs at
Caribou and the low copper production at Bisbee in June were unexpected. In
addition, higher labour costs were experienced during the quarter for start-up
at Raglan as well as at Bisbee for training purposes, which are short term
operating cost increases.
The safety record of the company was maintained during the first and
second quarters with no reported incidents at any of the operations or
construction projects.

Board Retirement
----------------
Anthony Kana, one of the founding directors of the Company announced his
retirement from the Board of Directors in June. The board wishes to thank Mr.
Kana for his input and advice while with the board during the initial stages
of the Company and more recently as the Company entered its operating stage of
development.

Corporate Profile
-----------------
BioteQ is establishing itself as a leader in the treatment of acid
contaminated water through the use of its patented BioSulphide(R) Process.
Focused on the mining industry, BioteQ has partnered with leading metal
producers including Phelps Dodge, Breakwater and Falconbridge as well as
utilities operator EPCOR Water Services, to finance, design, build and operate
mine site water treatment plants which recover saleable metals in addition to
meeting ever stricter environmental regulations.

On behalf of the Board of Directors

Brad Marchant