June 7, 2002

News Release: Enters Into Contract for Hydrogen Fuel Cell Project

BIOTEQ ENVIRONMENTAL TECHNOLOGIES INC. ("BQE-V")
Brad Marchant, President & CEO of BIOTEQ Environmental Technologies Inc. reports that the company has entered into a contract with Fuel Cell Intelligence, Ltd., for an independent analysis of the potential for BioteQ's partial oxidation system (POS) in conjunction with high temperature hydrogen fuel cells. Over the last 5 years BioteQ has developed their proprietary POS burner technology to provide a low cost alternative for hydrogen production from low grade fuel sources. The POS system was developed initially to provide an alternative hydrogen source for BioteQ's biological water treatment processes. Last year the Canadian Institute for Market Intelligence in cooperation with the National Research Council provided an independent assessment of BioteQ's POS technology as a possible fuel processor for fuel cells. This study showed that BioteQ's POS might be highly competitive with current steam reforming technology as a fuel processor for high temperature fuel cells and included recommendations for potentially competitive commercial markets. In addition, there is potential for additional fuel conversion values from production of carbon black and recovery of waste heat.

The contract with Fuel Cell Intelligence, Ltd. will provide BioteQ with an independent analysis of the critical performance criteria for high-temperature fuel cell/fuel processor systems, target efficiencies for commercial viability, commercial cost criteria and the mechanism for integration of BioteQ's POS with commercially available fuel cells. Fuel Cell Intelligence, Ltd. is an independent research and engineering contractor located in Kingston, Ontario, and is managed by Dr. Brant Peppley, P.Eng., who is an Associate Professor in the Department of Chemistry and Chemical Engineering, Electrochemical Power Sources Group at Royal Military College of Canada. Dr. Peppley has worked with a number of fuel cell developers including Ballard Power Systems, Fuel Cell Technologies, Ltd., HPower Corporation and Hydrogenics Corporation.

The POS burner was developed as an ancillary for the company's BioSulphide Process for industrial wastewater treatment. A commercial prototype POS burner was built by BioteQ and field tested over a 2 year period. Based on the results from field testing the company was encouraged to explore other applications of low cost hydrogen gas using the POS technology. The study conducted by Fuel Cell Intelligence, Ltd. will provide the company with the technical and market direction for commercial feasibility analysis of the POS burner. TEL: (416) 568-7199

Philip Beaudoin - Toronto TEL: (604) 685-1243

Brad Marchant, President & CEO FAX: (604) 685-7778

Tom Harvyl

BioteQ Environmental Technologies Inc Internet: www.bioteq.ca

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