BENEV Capital Inc.

Bennett Environmental Inc. Announces Q1 Results

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Source: BENEV Capital Inc.

OAKVILLE, ONTARIO -- (Marketwire) -- 05/20/11 -- Bennett Environmental Inc. (TSX: BEV) (the 'Company' or 'BEI') today announced its results for the period ending March 31, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Pre-tax loss was $2.0 million, after-tax loss was $1.8 million and loss per share was $0.05 on a fully diluted basis.

Commenting on the results, Mr. Jack Shaw, President and CEO, stated 'Current inventory levels represent approximately two months of processing. We are optimistic that based on outstanding proposals and expected bid opportunities that we will be able to increase this amount prior to commencing processing. Operating costs are controlled and consistent with expectations.

The Company continues to implement its diversification plan within the industrial waste/service sector, identifying potential acquisition opportunities and holding preliminary discussions. Unfortunately the dissident action launched in mid March has hampered this process. While the Company is interested in resolving this matter in the best interest of all shareholders, to date the dissident group has insisted that it will not accept a compromise that includes current directors who are committed to supporting the implementation of the Company's strategic plan of operational diversification within the industrial service sector. This choice of strategic direction was based on internal work by the Company supported by research by industry experts that clearly identified the consolidation opportunity that exists within the space.'

The Company also made the following comments on its results, with fuller discussion in the Management Discussion and Analysis available on http://media3.marketwire.com/docs/BennettMDAQ111.pdf and Interim Consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ111.pdf.

This report may contain forward-looking information that is subject to risks, uncertainties and assumptions. Such information represents our current views based on information as at the date of issuing this report. We do not intend to update this information and disclaim any legal obligation to the contrary.

Forward Looking Statements

Certain statements contained in this press release and in certain documents incorporated by reference into this press release constitute forward-looking statements. The use of any of the words 'anticipate', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'should', 'believe', 'confident', 'plan' and 'intends' and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. BEI believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in, or incorporated by reference into, this press release should not be unduly relied upon. These statements speak only as of the date of this press release. BEI undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Bennett Environmental Inc.

Bennett Environmental Inc. is a North American leader in high temperature treatment services for the treatment of contaminated soil and has provided thermal solutions to contamination problems throughout Canada and the U.S. Bennett Environmental's technology provides for the safe, economical and permanent solution to contaminated soil. Independent testing has consistently proven that the technology operates well within the most stringent criteria in North America. For information, please visit the Bennett Environmental website at: www.bennettenv.com.

BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Financial Position
(Unaudited)
(Expressed in Canadian dollars)

----------------------------------------------------------------------------
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                                        March 31, December 31,   January 1,
                                             2011         2010         2010
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Assets
Current assets:
  Cash and cash equivalents         $  63,720,123 $ 64,993,643 $ 17,645,459
  Restricted cash (note 4)                 10,680       10,649      865,918
  Amounts receivable                      394,472      321,906   10,215,767
  Holdbacks receivable                          -            -    3,029,363
  Deferred costs                        1,708,897      661,925            -
  Prepaid expenses and other              477,781      561,402      446,104
  Assets classified as held for sale
   (note 5)                             2,675,532    2,675,532    2,675,532
  --------------------------------------------------------------------------
                                       68,987,485   69,225,057   34,878,143
Property, plant and equipment (note
 6)                                     9,344,654    9,523,502   10,290,464
Assets under finance lease (note 7)       514,438      522,237      382,500
Deferred tax assets                             -            -    3,915,650
----------------------------------------------------------------------------
                                    $  78,846,577 $ 79,270,796 $ 49,466,757
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
  Accounts payable and accrued
   liabilities                      $   2,228,805 $  2,850,241 $  5,369,309
  Current tax liabilities                 571,083      583,962    2,087,079
  Liabilities related to assets held
   for sale (note 5)                      675,631      618,020      475,532
  Stock compensation liability (note
   14)                                    803,241            -            -
  Deferred revenue                      4,261,838    2,445,369    7,286,897
  Provisions (note 10)                    412,440      695,828      620,825
  Current portion of long-term
   liabilities (note 12)                1,648,076    2,230,194      285,621
  Current portion of finance lease
   obligations (note 11)                  183,368      182,838      135,316
  --------------------------------------------------------------------------
                                       10,784,482    9,606,451   16,260,579
Long-term liabilities (note 12)           726,879      741,633    2,912,430
Long-term portion of finance lease
 obligations (note 11)                    109,165      155,206      229,330

Shareholders' equity:
  Share capital (note 13)              96,590,705   93,364,040   71,949,963
  Contributed surplus (note 14)         4,104,007    4,846,334    4,244,554
  Share purchase warrants (note 15)     2,721,131    2,721,131      429,056
  Accumulated deficit                 (36,189,792) (32,163,999) (46,559,155)
  --------------------------------------------------------------------------

Total equity                           67,226,051   68,767,506   30,064,418
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Subsequent events (notes 5, 19(e), 20)
----------------------------------------------------------------------------
                                    $  78,846,577 $ 79,270,796 $ 49,466,757
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BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Operations and Comprehensive Income
(Loss)
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31

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                                                        2011           2010
----------------------------------------------------------------------------

Sales                                          $           -  $  11,148,377

Expenses:
  Operating costs                                    374,711      2,954,764
  Administration and business development          1,696,936      1,358,633
  Amortization                                       217,243        261,300
  --------------------------------------------------------------------------
                                                   2,288,890      4,574,697
----------------------------------------------------------------------------

Results from operating activities                 (2,288,890)     6,573,680

  Finance income                                     324,222         44,222
  Finance costs                                      (38,519)       (36,171)
----------------------------------------------------------------------------

Net finance income                                   285,703          8,051
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Income (loss) before income taxes                 (2,003,187)     6,581,731

Income taxes expense (recovery)                     (228,775)     1,705,459
----------------------------------------------------------------------------

Net income (loss) for the period, being
 comprehensive income (loss)                   $  (1,774,412) $   4,876,272
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Earnings (loss) per share (note 16)
  Basic (loss) earnings per share              $       (0.05) $        0.17
  Diluted (loss) earnings per share                    (0.05)          0.17
----------------------------------------------------------------------------


BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31, 2010

                                    Attributable to equity holders of the
                                                   Company
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                      Share
                                         Share   Contributed       purchase
                                       capital       surplus       warrants
----------------------------------------------------------------------------

Balance at January 1, 2010       $  71,949,963 $   4,244,554  $     429,056

Comprehensive loss for the period            -             -              -

Share-based compensation                     -        32,513              -

Share options exercised                199,221       (79,121)             -

Warrants exercised                   1,314,656             -       (429,056)

----------------------------------------------------------------------------
Balance at March 31, 2010        $  73,463,840 $   4,197,946  $           -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                    Attributable to equity
                                    holders of the Company
-------------------------------------------------------------
-------------------------------------------------------------
                                   Accumulated          Total
                                       deficit         equity
-------------------------------------------------------------

Balance at January 1, 2010       $ (46,559,155) $  30,064,418

Comprehensive loss for the period    4,876,272      4,876,272

Share-based compensation                     -         32,513

Share options exercised                      -        120,100

Warrants exercised                           -        885,600

-------------------------------------------------------------
Balance at March 31, 2010        $ (41,682,883) $  35,978,903
-------------------------------------------------------------
-------------------------------------------------------------

BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statement of Changes in Equity (continued)
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31, 2011

                                     Attributable to equity holders of the
                                                    Company
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                       Share
                                                  Contributed       purchase
                                  Share capital       surplus       warrants
----------------------------------------------------------------------------

Balance at January 1, 2011        $  93,364,040 $   4,846,334  $   2,721,131

Comprehensive loss for the period             -             -              -

Share-based compensation                      -        49,290              -

Conversion from equity settled to
 cash settled stock option plan
 (note 14)                                    -      (791,617)             -

Share options exercised               3,226,665             -              -
----------------------------------------------------------------------------
Balance at March 31, 2011         $  96,590,705 $   4,104,007  $   2,721,131
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                   Attributable to equity holders
                                           of the Company
------------------------------------------------------------------
------------------------------------------------------------------
                                     Accumulated            Total
                                         deficit           equity
------------------------------------------------------------------

Balance at January 1, 2011        $  (32,163,999)  $   68,767,506

Comprehensive loss for the period     (1,774,412)      (1,774,412)

Share-based compensation                       -           49,290

Conversion from equity settled to
 cash settled stock option plan
 (note 14)                            (2,251,381)      (3,042,998)

Share options exercised                        -        3,226,665
------------------------------------------------------------------
Balance at March 31, 2011         $  (36,189,792)  $   67,226,051
------------------------------------------------------------------
------------------------------------------------------------------


BENNETT ENVIRONMENTAL INC.
Interim Consolidated Statements of Cash Flows
(Unaudited)
(Expressed in Canadian dollars)
For the three months ended March 31

----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                       2011            2010
----------------------------------------------------------------------------

Cash flows provided by (used in) operating
 activities:
  Net income (loss) for the period            $  (1,774,412)  $   4,876,272
  Adjustments for:
    Amortization                                    217,243         261,301
    Foreign exchange gains related to U.S.
     Department of Justice accrual                  (54,162)        (78,074)
    Unwinding of discount on provisions               6,568           9,942
    Gain on sale of property, plant and
     equipment                                       (1,671)              -
    Share-based compensation                        394,698          32,513
    Income tax expense (recovery)                  (228,775)      1,705,459

  Change in amounts receivable                      (72,566)      9,560,250
  Change in holdbacks receivable                          -      (2,222,608)
  Change in prepaid expenses and other               83,621          38,279
  Change in deferred costs                       (1,046,972)              -
  Change in accounts payable and accrued
   liabilities                                      181,805      (2,049,798)
  Change in stock compensation liability           (803,241)              -
  Change in liabilities related to assets held
   for sale                                          57,611          34,790
  Change in provisions                             (283,387)         (8,078)
  Change in deferred revenue                      1,816,469       7,581,858
  Change in current tax payable                     215,896         143,832
  Repayment of long-term liabilities               (549,278)        (19,750)
  --------------------------------------------------------------------------

Net cash provided by (used in) operating
 activities                                      (1,840,553)     19,866,188
----------------------------------------------------------------------------

Cash flows from investing activities
  Proceeds from sale of property, plant and
   equipment                                          4,250               -
  Acquisition of property, plant and equipment      (33,175)        (74,963)
  Change in restricted cash                             (31)        855,348
  --------------------------------------------------------------------------

Net cash provided by (used in) investing
 activities                                         (28,956)        780,385
----------------------------------------------------------------------------

Cash flows from financing activities
  Proceeds from exercise of warrants                      -         885,600
  Proceeds from exercise of share options           641,500         120,100
  Payment of finance lease liabilities              (45,511)        (33,610)
  --------------------------------------------------------------------------

Net cash provided by financing activities           595,989         972,090
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Net increase (decrease) in cash and cash
 equivalents                                     (1,273,520)     21,618,663
Cash and cash equivalents at beginning of
 period                                          64,993,643      17,645,459
----------------------------------------------------------------------------

Cash and cash equivalents at end of period    $  63,720,123   $  39,264,122
----------------------------------------------------------------------------
----------------------------------------------------------------------------

These interim consolidated financial statements do not include accompanying notes. A complete set of interim consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ111.pdf.

Contacts:
Bennett Environmental Inc.
Jack Shaw
(905) 339-1540

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