BioteQ Signs Initial Agreement with Inco

VANCOUVER, Oct. 19 /CNW/ - BioteQ Environmental Technologies Inc.    
(TSX-V:BQE) reports that it has signed a preliminary agreement with Inco
Limited for the development of a water treatment facility located at Inco's
North Mine operation in Sudbury, Ontario. The agreement provides for the joint
completion of a basic engineering study for the project. Based on the outcome
of the study, the parties will determine whether or not to proceed further
with the project, which would involve the negotiation of a definitive
agreement between the parties.

Project Description

The proposed project has been the subject of preliminary evaluations and
engineering studies by BioteQ at Inco's Sudbury operations during the last two
years. Preliminary engineering estimates have been completed by BioteQ to
treat underground minewater from the North Mine, which is part of Inco's
Copper Cliff mine operations complex located near Sudbury, Ontario. The
treatment objective is to selectively recover nickel contained in the
underground mine drainage, using BioteQ's nickel recovery process developed
for Falconbridge Limited's Raglan Mine in northern Quebec, and treat the water
for either recycle or discharge into Inco's tailings system. Inco is hopeful
that this technology will have both environmental and commercial benefits by
improving nickel recoveries from mine water. A preliminary base case estimate
completed by BioteQ indicates that the process has the potential to recover
approximately 850,000 pounds per year of nickel from a water flow of 5 million
litres per day. The initial operating cost estimated by BioteQ is $C2.2
million per year and associated capital cost is approximately $C3.5 million.
Inco would receive and process the nickel product at its Sudbury operations on
terms to be included in the definitive agreement. It is anticipated that Inco
would charge a fee for refining this product, which is not included in the
operating cost estimate above.
BioteQ is currently evaluating four flowsheet options for comparison with
the base case described above. The engineering study is scheduled for
completion in 2005 and, if the parties elect to proceed with the project,
plant construction in 2006. The proposed plant at the North Mine offers BioteQ
and Inco a low risk opportunity to evaluate the technology for other potential
applications at Inco's Sudbury operations.

Agreement Terms

The preliminary agreement signed with Inco outlines a joint development
project at the North Mine. The agreement provides for a basic engineering
study, including basic engineering for construction, which is expected to cost
approximately $C100,000, with the cost being shared equally by the parties.
Inco will reimburse BioteQ for its share of the study if a definitive
agreement is not completed within 12 months. The final commercial terms have
not been defined but include a variety of options for structuring the project.

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