Birch Mountain reports second quarter results



    CALGARY, Aug. 15 /CNW/ - Birch Mountain Resources Ltd. ("Birch Mountain"
or the "Company") (BMD: TSX and AMEX) yesterday reported financial results for
the second quarter ended June 30, 2008, and they are filed at www.sedar.com
and at www.sec.gov.
    Sales in the second quarter of 2008 were $5.6 million, an increase of
$0.8 million or ~16% compared to sales of $4.8 million reported for the second
quarter of 2007. The Company reports a loss of $4.7 million for the second
quarter of 2008, a decrease of $1.2 million or ~20% compared to the loss of
$5.9 million reported for the second quarter of 2007. Debentures of
$59.5 million are reclassified as Current Liabilities due to the breach of
covenants and non-payment of the interest due June 30th, 2008.
    Summarized unaudited consolidated financial statements for the six months
ending June 30, 2008 are reported in the tables below. To access the notes to
the summary financial statements, the Company refers readers to its complete
Second Quarter 2008 Financial Report as well as other informational
disclosures on SEDAR at www.sedar.com and/or EDGAR at www.edgar.com.
    The Company continues to operate the Muskeg Valley Quarry and is
delivering limestone aggregate and reagent products to its customers in the
region. As announced on July 23, 2008, the process leading to an immediate
sale or recapitalization of the Company continues under the direction of the
Special Committee of independent directors.

    Forward-Looking Statements: This news release contains certain
forward-looking statements. All statements, other than statements of
historical fact, included herein, including without limitation, statements
regarding resources and reserves, exploration and development plans and
results, anticipated capital expenditures and financing thereof, anticipated
outcomes and timing of regulatory applications and approvals and the future
plans and objectives of Birch Mountain are forward-looking statements that
involve various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Certain
amounts in the financial statements are based on estimates using the best
currently available information and assumptions of management. Important
factors that could cause actual results to differ materially from Birch
Mountain's expectations are disclosed elsewhere in documents that are
available to the public at www.sedar.com and www.sec.gov.

    
                                               Birch Mountain Resources Ltd.
                                                 Consolidated Balance Sheets

    Canadian Dollars (000's)

                                  UNAUDITED
    -------------------------------------------------------------------------
                                                       June 30,  December 31,
    As At                                                 2008          2007
    -------------------------------------------------------------------------
    Assets
    Current
      Bank overdraft                                 $    (163)    $   9,493
      Accounts receivable                                4,614         1,821
      Inventory                                          4,095         4,741
      Prepaids and deposits                                431           224

                                                         8,977        16,279

    Long-term prepaid                                      137           137

    Restricted cash                                      3,000         3,000

    Property, plant and equipment                       21,401        21,857

    Mineral properties                                  56,210        54,765
    -------------------------------------------------------------------------
                                                     $  89,725     $  96,038
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity
    Current
      Accounts payable and accrued liabilities       $   7,523     $   5,094
      Current portion of long term debt                  1,099         1,065
      Deferred charges                                     129           129
      Convertible debentures                            59,522
      Other current liabilities                          2,374         2,389
    -------------------------------------------------------------------------
                                                        70,647         8,677

    Long term debt                                       4,380         4,939
    Asset retirement obligation                          3,080         1,680
    Convertible debentures                                            58,699
    -------------------------------------------------------------------------
                                                        78,107        73,995
    -------------------------------------------------------------------------
    Commitments

    Shareholders' equity

      Share capital                                     49,710        49,632

      Contributed surplus                               14,759        14,404

      Deficit                                          (52,851)      (41,993)
    -------------------------------------------------------------------------
                                                        11,618        22,043
    -------------------------------------------------------------------------
    Total Liabilities and Shareholders' Equity       $  89,725     $  96,038
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                               Birch Mountain Resources Ltd.
             Consolidated Statements of Loss, Comprehensive Loss and Deficit
                                For the six months ended June 30 - UNAUDITED
    Canadian Dollars (000's)

    -------------------------------------------------------------------------
                                3 Months    3 Months    6 Months    6 Months
                                   Ended       Ended       Ended       Ended
                                 June 30,    June 30,    June 30,    June 30,
                                    2008        2007        2008        2007
    -------------------------------------------------------------------------
    Revenue
    Sales                      $   5,611   $   4,810   $   5,893   $   5,669

    Cost of Sales                  6,931       3,742       8,299       4,491

                                  (1,320)      1,068      (2,406)      1,178
    -------------------------------------------------------------------------
    Expenses
    Amortization, Accretion
     and Depletion                   606         217       1,205         438
    Interest on long-term debt,
     bank charges and foreign
     exch. (gain)/loss             1,511       1,047       2,885       1,991
    Mineral exploration costs          -         122           -         230
    Office                           293         192         824         313
    Professional fees                287         598         802         908
    Indirect quarry costs             33       3,719         566       4,396
    Salaries, wages and benefits     634         509       1,767         771
    Shareholder services and
     marketing                       108         265         270         591
    Stock-based compensation          28         380         355       1,195
    -------------------------------------------------------------------------
                                   3,500       7,049       8,674      10,833
    -------------------------------------------------------------------------
    Loss before other income      (4,820)     (5,981)    (11,080)     (9,655)

    Interest and other income        129          68         222         115
    -------------------------------------------------------------------------
    Net loss and comprehensive
     loss for the period          (4,691)     (5,913)    (10,858)     (9,539)
    -------------------------------------------------------------------------

    Deficit, beginning of
     period                      (48,160)    (21,112)    (41,993)    (17,484)

    Deficit, end of period     $ (52,851)  $ (27,025)  $ (52,851)  $ (27,025)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss per share
      Basic and diluted            (0.06)      (0.07)      (0.13)      (0.11)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    %SEDAR: 00003909E




For further information:

For further information: Company Contacts: Birch Mountain, Tel. (403)
262-1838, Fax (403) 263-9888; Steve Chizzik, Equity Communication, Tel. (908)
688-9111; Website: www.birchmountain.com

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BIRCH MOUNTAIN RESOURCES LTD.

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