BENEV Capital Inc.

Bennett Environmental Inc. Announces Q2 Results

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Source: BENEV Capital Inc.

OAKVILLE, ONTARIO -- (Marketwire) -- 08/10/11 -- Bennett Environmental Inc. (TSX: BEV) (the 'Company' or 'BEI') today announced its results for the three month period ending June 30, 2011. There was no revenue for the quarter as the Saint Ambroise facility remained closed in order to accumulate a stockpile of soil inventory. Net loss was $4.3 million and loss per share was $0.11 on a fully diluted basis. During the quarter the Company incurred expenses of $2.3 million in connection with the proxy contest with Second City Capital. Had these costs not been incurred, the net loss would have been $2.0 million.

Commenting on the results, Mr. Lawrence Haber, President and CEO, stated 'Current inventory levels represent approximately two and one-half months of processing. Operating costs are controlled and consistent with expectations.

The Company's Board of Directors is in the process of positioning the Company for the future, and is united in its view to enhance the value of the Company for the benefit of the Company's shareholders and other stakeholders. The transitioning of the Company and its strategic focus has been started and is underway. The Board plans to take a broad view of the opportunities available to the Company, which will include but not be limited to, the environmental sector. The Board and CEO will seek to source, structure and complete one or more transactions, designed to create meaningful value for shareholders.

With respect to its core soil remediation business, Bennett is continuing to concentrate on building sustainable growth and shareholder value through an ongoing focus on cost controls and securing orders for soil treatment by building new relationships with key market players and decision makers in treatment projects.'

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/BennettMDAQ211.pdf and Interim condensed consolidated Financial Statements available on http://media3.marketwire.com/docs/BennettIFSQ211.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 Condensed Consolidated Statement of Financial Position
(Unaudited)
(Expressed in Canadian dollars)
----------------------------------------------------------------------------
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                                    June 30,    December 31,     January 1,
                                        2011            2010           2010
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Assets
Current assets:
 Cash and cash equivalents      $ 61,797,796   $  64,993,643   $ 17,645,459
 Restricted cash (note 4)             20,744          10,649        865,918
 Amounts receivable                  328,011         321,906     10,215,767
 Holdbacks receivable                      -               -      3,029,363
 Holdback receivable (note 5)        300,000               -              -
 Deferred costs                    1,911,566         661,925              -
 Prepaid expenses and other          162,358         561,402        446,104
 Assets classified as held for
  sale (note 5)                            -       2,675,532      2,675,532
 ---------------------------------------------------------------------------
                                  64,520,475      69,225,057     34,878,143
Property, plant and equipment
 (note 6)                          9,147,972       9,523,502     10,290,464
Assets under finance lease
 (note 7)                            506,639         522,237        382,500
Deferred tax assets                        -               -      3,915,650
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                                $ 74,175,086   $  79,270,796   $ 49,466,757
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Liabilities and Shareholders'
 Equity
Current liabilities:
 Accounts payable and accrued
  liabilities                   $  1,879,406   $   2,850,241   $  5,369,309
 Current tax liabilities             488,500         583,962      2,087,079
 Liabilities related to assets
  held for sale (note 5)             225,000         618,020        475,532
 Stock compensation liability
  (note 14)                          564,339               -              -
 Deferred revenue                  5,370,137       2,445,369      7,286,897
 Provisions (note 10)                411,675         695,828        620,825
 Current portion of long-term
  liabilities (note 12)            1,120,075       2,230,194        285,621
 Current portion of finance
  lease obligations (note 11)        183,900         182,838        135,316
 ---------------------------------------------------------------------------
                                  10,243,032       9,606,451     16,260,579
Long-term liabilities (note 12)      712,035         741,633      2,912,430
Long-term portion of finance
 lease obligations (note 11)          62,990         155,206        229,330

Shareholders' equity:
 Share capital (note 13)          96,812,271      93,364,040     71,949,963
 Contributed surplus (note 13)     4,104,007       4,846,334      4,244,554
 Share purchase warrants
 (note 13)                         2,721,131       2,721,131        429,056
 Accumulated deficit             (40,480,380)    (32,163,999)   (46,559,155)
 ---------------------------------------------------------------------------

Total equity                      63,157,029      68,767,506     30,064,418
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                                $ 74,175,086   $  79,270,796   $ 49,466,757
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BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Operations and Comprehensive
 Income (Loss)
(Unaudited)
(Expressed in Canadian dollar)
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                             Three months ended            Six months ended
                                       June 30,                    June 30,
                             2011          2010          2011          2010
----------------------------------------------------------------------------

Sales                 $         -  $ 10,914,914  $          -  $ 22,063,291
Expenses:
  Operating costs         336,279     2,525,960       710,990     5,480,724
  Administration and
   business
   development          1,576,277     1,191,441     3,104,523     2,550,074
  Management/Board
   restructuring costs
   (note 15)            2,285,577             -     2,490,072             -
  Amortization            221,981       257,441       439,224       518,741
  Loss on disposal of
   assets held for
   sale(note 5)            18,286             -        18,286             -
  --------------------------------------------------------------------------
                        4,438,400     3,974,842     6,763,095     8,549,539
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Results from operating
 activities            (4,438,400)    6,940,072    (6,763,095)   13,513,752

  Finance income          167,307        52,277       525,760        93,935
  Finance costs           (19,495)     (537,158)      (56,440)     (570,765)
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Net finance income
 (costs)                  147,812      (484,881)      469,320      (476,830)
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Income (loss) before
 income taxes          (4,290,588)    6,455,191    (6,293,775)   13,036,922

Income taxes expense
 (recovery)                     -     1,365,098      (228,775)    3,070,557
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Net income (loss) for
 the period, being
 comprehensive income
 (loss)               $(4,290,588) $  5,090,093  $ (6,065,000) $  9,966,365
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Earnings (loss) per
 share (note 16)
  Basic (loss)
   earnings per share $     (0.11) $       0.15  $      (0.16) $       0.32
  Diluted (loss)
   earnings per share       (0.11)         0.14         (0.16)         0.31
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BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30, 2010

                              Attributable to equity holders of the Company
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                          Share
                  Share Contributed    purchase    Accumulated        Total
                capital     surplus    warrants        deficit       equity
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Balance at
 January 1,
 2010      $ 71,949,963 $ 4,244,554  $  429,056  $ (46,559,155) $30,064,418

Comprehensi
 ve income
 for the
 period               -           -           -      9,966,366    9,966,366

Share-based
 compensati
 on                   -      65,386           -              -       65,386

Share
 options
 exercised      241,220     (98,721)          -              -      142,499

Warrants
 exercised    1,314,656           -    (429,056)             -      885,600

Shares
 issued in
 connection
 with
 public
 offering
 closing
 May 7,
 2010        22,213,117           -           -              -   22,213,117

Share-based
 costs       (2,356,506)          -           -              -   (2,356,506)

Fair value
 of
 compensati
 on options
 issued in
 connection
 with share
 and
 warrant
 offering
 closing
 May 7,
 2010                 -     483,992           -              -      483,992

Excess fair
 value of
 warrants
 issued on
 over-
 allotment
 closing
 May 21,
 2010 over
 considerat
 ion
 received             -    (110,656)          -              -     (110,656)

Fair value
 of
 compensati
 on options
 issued in
 connection
 with over-
 allotment
 closing
 May 21,
 2010                 -       9,191           -              -        9,191

Warrants
 issued in
 connection
 with
 public
 offering
 closing
 May 7 and
 May 21,
 2010 net
 of issue
 costs                -           -   4,713,115              -    4,713,115
----------------------------------------------------------------------------


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Balance at
 June 30,
 2010      $ 93,362,450 $ 4,593,746  $4,713,115  $ (36,592,789) $66,076,522
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BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statement of Changes in Equity
(Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30, 2011

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


Balance at
 January 1,
 2011      $ 93,364,040 $  4,846,334  $2,721,131 $ (32,163,999) $68,767,506

Comprehensi
 ve loss
 for the
 period               -            -           -    (6,065,000)  (6,065,000)

Share-based
 compensati
 on                   -       49,290           -             -       49,290

Conversion
 from
 equity
 settled to
 cash
 settled
 stock
 option
 plan (note
 14)                  -     (791,617)          -    (2,251,381)  (3,042,998)

Share
 options
 exercised    3,448,231            -           -             -    3,448,231
----------------------------------------------------------------------------

Balance at
 June 30,
 2011      $ 96,812,271 $  4,104,007  $2,721,131 $ (40,480,380) $63,157,029
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BENNETT ENVIRONMENTAL INC.
Interim Condensed Consolidated Statements of Cash Flows (Unaudited)
(Expressed in Canadian dollars)
For the six months ended June 30
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----------------------------------------------------------------------------
                                                       2011            2010
----------------------------------------------------------------------------

Cash flows provided by (used in) operating
 activities:
  Net income (loss) for the period            $  (6,065,000)  $   9,966,364
  Adjustments for:
    Amortization                                    439,224         518,741
    Foreign exchange gains related to U.S.
     Department of Justice accrual                  (55,117)         30,165
    Unwinding of discount on provisions              13,037          33,354
    Gain on sale of property, plant and
     equipment                                       (1,671)              -
    Loss on sale of assets held for sale             18,286               -
    Share-based compensation                        325,362          65,386
    Income tax expense (recovery)                  (228,775)      3,395,510

Change in non-cash working capital items:
  Amounts receivable                                 (6,105)      2,836,829
  Holdbacks receivable                             (300,000)      2,183,468
  Prepaid expenses and other                        399,044         191,004
  Deferred costs                                 (1,249,641)              -
  Accounts payable and accrued liabilities          416,395      (1,906,994)
  Stock compensation liability                     (564,339)              -
  Liabilities related to assets held for sale      (393,020)         65,584
  Provisions                                       (284,153)          3,121
  Deferred revenue                                2,924,768        (994,061)
  Current tax payable                               133,313         325,503
  Repayment of long-term liabilities             (1,097,637)        (39,500)
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Net cash provided by (used in) operating
 activities                                      (5,576,029)     16,674,474
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Cash flows from investing activities
  Proceeds from sale of property, plant and
   equipment                                          4,250          30,000
  Proceeds from sale of assets held for sale      1,834,356               -
  Acquisition of property, plant and equipment      (50,675)       (183,121)
  Change in restricted cash                         (10,095)        855,333
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Net cash provided by investing activities         1,777,836         702,212
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Cash flows from financing activities
  Proceeds from exercise of warrants                      -         885,600
  Proceeds from exercise of share options           693,500         142,500
  Proceeds from shares and warrants due to
   public offering, net of costs                          -      22,961,859
  Payment of finance lease liabilities              (91,154)       (131,248)
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Net cash provided by financing activities           602,346      23,858,711
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Net increase (decrease) in cash and cash
 equivalents                                     (3,195,847)     41,235,397
Cash and cash equivalents at beginning of
 period                                          64,993,643      17,645,459
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Cash and cash equivalents at end of period    $  61,797,796   $  58,880,856
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These interim condensed consolidated financial statements do not include accompanying notes. A complete set of interim condensed consolidated financial statements including notes is available on http://media3.marketwire.com/docs/BennettIFSQ211.pdf.

Contacts:
Bennett Environmental Inc.
Lawrence Haber
(905) 339-1540
www.bennettenv.com

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