Re: News Releases - Monday, January 26, 2009
BacTech Reports Improved Results on Tailings Metallurgical Test
Work
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BacTech Reports Improved Results on Tailings Metallurgical Test Work
TORONTO, CANADA--(Marketwire - Jan. 26, 2009) - BacTech Mining
Corporation ("BacTech" or the "Company")(TSX VENTURE:BM) is pleased to
report significantly improved metal recoveries from the concentrate
test work currently being done on the sample of tailings material taken
from the Castle Mine tailings deposit located in Gowganda near Cobalt,
Ontario.

Highlights of this round of test work include substantially improved
recoveries of arsenic, with tests achieving over 92% recovery into the
concentrate. In addition, gold, silver, and cobalt recoveries averaged
in excess of 76%, much higher than the initial results the Company
reported on November 10, 2008 (see table below). Readers should also
note the first mention of gold recovery from the tailings, although
these are only present as minor values in the sample being used for
test work.

The metallurgical work is being done as a precursor to BacTech's plan
to build a bioleaching plant near Cobalt, Ontario, to neutralize the
arsenic-laden tailings prevalent in the area, while also recovering the
significant quantities of cobalt, nickel, and silver also present in
the tailings. The Castle Mine tailings are owned by Gold Bullion
Development Corp. (TSX VENTURE:GBB).

The objective of the metallurgical test work is to test the effects of
using both gravity and flotation techniques to upgrade the tailings to
produce concentrates suitable for bioleach test work. Of particular
note is that the mass pull has been reduced, while recoveries have been
improved over the November results. Mass pull is defined as the amount
of original tails which reports to the concentrate, so, by example, a
7% mass pull means that 70 kg of concentrate is produced for every
tonne of tailings processed. The initial study focused on the use of
gravity techniques. The current round of testing included the use of
flotation in combination with gravity. Test work examining the possible
use of flotation on its own, without gravity, is also being undertaken.
The test work is being conducted at SGS Lakefield Metallurgical
Laboratory in Lakefield Ontario.

At this stage, BacTech has yet to use any expensive grinding of the
tails to obtain these results. An assessment of the potential
application of grinding and its effects on recoveries at relevant
stages may be undertaken.

Concentrates have also been produced by SGS Lakefield which have been
shipped to SGS Oretest in Perth, Australia, and to the University of
Toronto for the purpose of initiating bioleach and diagnostic leach
testing, together with downstream metal recovery tests. Initial results
from this work are expected by April.

The high retention of arsenic in the concentrate, which was one of the
main objectives of the test work, is very encouraging from an
environmental rehabilitation perspective. BacTech's patented
bioleaching technology is a proven and effective technology for
producing a stable form of arsenic, which makes this both an
environmental reclamation project and a metal recovery project. The
technology is able to process concentrates with high arsenic values
which would normally be considered unacceptable for conventional
processing methods such as smelting or roasting.

The cost of bioleaching is directly related to the amount of
concentrate that has to be processed. The above-mentioned results
compare very favourably with the November test results and should help
the overall economics of the project.

The latest test results on concentrate production were obtained by
processing 198 kg of Castle Mine tails feedstock. Screening was used to
remove coarse material, followed by use of a cyclone for desliming.
Spirals were then used as a low gravity separation technique on the
remaining bulk of material to give gravity concentrates which were
further upgraded by tabling. The spiral tails were then subjected to
flotation to produce a further scavenger concentrate. Two concentrate
composites were produced which could represent suitable feedstocks for
a bioleach treatment facility. The first composite concentrate
(Composite "A") consisted of the coarse and slimes fractions composited
with the table concentrate from spirals and the scavenger flotation
concentrate. For the second concentrate composite (Composite "B")
tabling of the coarse fraction was conducted to reduce the mass of this
material prior to compositing with the table concentrates from
spiraling and flotation concentrate and slimes fraction. The recoveries
obtained with these two concentrate composites compared to the earlier
results released in November are given below.

November 2008 results - Recovery of elements to concentrate at 20% mass
pull using gravity

------------------------------------...
Ag Co Ni As S
------------------------------------...
55.2% 63.2% 40.0% 80.5% 28.7%
------------------------------------...

January 2009 results: COMPOSITE "A" Recovery of elements to concentrate
at 10% mass pull using gravity and flotation (no grinding)

------------------------------------...
Ag Au Co Ni As S
------------------------------------...
78.3% 76.8% 77.6% N/A 93.2% 56.6%
------------------------------------...

November 2008 results: Recovery of elements to concentrate at 2% mass
pull using gravity

------------------------------------...
Ag Co Ni As S
------------------------------------...
26.2% 47.6% 22.8% 64.1% 12.2%
------------------------------------...

January 2009 results: COMPOSITE "B" Recovery of elements to concentrate
at 7% mass pull using gravity and flotation (no grinding)

------------------------------------...
Ag Au Co Ni As S
------------------------------------...
75.3% 75.8% 76.2% N/A 92.4% 52.9%
------------------------------------...

These new results are very encouraging. BacTech will conduct a
systematic drill or auger program on the tailings when weather permits.
The intent of the program will be to establish a resource base that is
compliant with National Instrument 43-101 standards.

Gold Bullion Development Corp. has informed BacTech that the company
will not be proceeding with the terms of the Memorandum of
Understanding announced on September 2, 2008. Gold Bullion has given
BacTech permission to begin discussions with potential new partners and
this process has begun. BacTech will continue to rely on GBB to provide
tailings resource information going forward.

Finally, BacTech submitted its application to the Sustainable
Development Technology Corporation by the prescribed deadline for a
financial grant to be used for the proposed Cobalt demonstration plant.

Technical and scientific data in this news release has been verified by
Dr. Paul Miller, the Company's Vice President of Technology and
Engineering. Dr. Miller is a chartered engineer and a member of the
Institute for Mining and Metallurgy, London, England, and is a
qualified person for the purposes of National Instrument 43-101. Dr.
Miller has reviewed and approved the contents of this news release.

BACTECH PROFILE

BacTech owns patented bacterial oxidation technology for the treatment
of refractory ores and concentrates to enhance the recovery of gold,
silver and base metals. The Company's focus is the acquisition of
equity positions in projects amenable to bioleaching. In June 2008, the
Company signed an agreement to acquire Yamana Gold Inc.'s 33% interest
in two refractory gold deposits in Papua New Guinea. In September 2008,
BacTech signed an MOU to investigate the use of bioleaching to
reprocess arsenic-laden tailings in Cobalt, Ontario. This is the
Company's first foray into the cleantech industry. BacTech is
continuing to evaluate additional remediation projects.