Mr. David Kratochvil reports

BQE WATER REPORTS Q1 2022 RESULTS

BQE Water Inc. has released its interim consolidated financial results for the three months ended March 31, 2022.

"After reporting strong full-year 2021 results, we delivered a solid first quarter in 2022, recording our first positive net income for a first quarter due to robust revenues from technical services and new recurring revenues from plants entering operations. Building on the growth trajectory that started last year, including our strong balance sheet, healthy project pipeline and growing recurring revenue streams, we are going into 2022 with a positive outlook. So far this year, we have brought on-line our first project to remove selenium from ash pond water in the [United States]," stated David Kratochvil, president and chief executive officer of BQE Water.

Financial highlights:

• Increased proportional revenues by $2.0-million or 128 per cent compared with first quarter 2021;
• Recorded a historic high net income for Q1 of $190,000; this is the first Q1, typically the weakest quarter, with positive net income;
• Increased adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) by $677,000 compared with Q1 2021;
• Increased working capital by $1.3-million or 45 per cent over a 12-month period from $3.1-million at March 31, 2021, to $4.4-million at March 31, 2022;
• Increased net cash by $578,000 over a 12-month period from $3.2-million at March 31, 2021, to $3.8-million at March 31, 2022.

Commentary and outlook

The company is very pleased with its Q1 2022 results, which showed sustained strength in the project pipeline that underlies its long-term financial performance. Historically, the first quarter has been its weakest financially, primarily due to the impact of seasonality on recurring revenues from existing operations. Specifically, its operations in Northern Quebec are shut down over the winter months while its joint venture operations in China treat lower water volumes during their dry season. Despite the same conditions and challenges faced in previous years, the company recorded its first positive net income for a first quarter in 2022 due to robust revenues from technical services.

Looking ahead to the balance of the year, the company expects continued strong financial performance due to a strong backlog of technical service projects, the restart of its seasonal operations and new recurring revenues from plants entering operations for the first time in 2022. As always, the company would like to caution investors with respect to the uncertainties that could affect this positive outlook. Specifically, geopolitical risks, high inflation, monetary tightening and the continued impact of COVID-19 could all have negative impacts on the world economy, including the company's sector. That said, the company believes that the environmental compliance and sustainability requirements of natural resource companies, coupled with its healthy balance sheet and recurring revenues, position it well to sustain any temporary exogenous shocks and will allow it to continue to grow as it capitalizes on long-term opportunities in mining and ESG (environmental, social and governance).

About BQE Water Inc.

BQE Water is a service provider, specializing in water treatment and management for metal mining, smelting and refining. It is helping to transform the way the industry thinks about water in the context of natural resource projects by offering services and expertise which enable more sustainable water management practices and improved overall project performance at reduced risks. BQE Water invests in innovation, and has developed unique intellectual property through the commercialization of several new technologies at mine sites around the world for organizations including Glencore, Jiangxi Copper, Freeport-McMoRan and the U.S. EPA (Environmental Protection Agency). BQE Water is headquartered in Vancouver, Canada, and trades on the TSX Venture Exchange under the symbol BQE.

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