Convertible Unsecured Subordinate Debentures



    CALGARY, July 3 /CNW/ - Birch Mountain Resources Ltd. ("Birch Mountain"
or the "Company") (BMD: TSX and AMEX) announces that it has not made the
scheduled June 30, 2008, interest payment to the holders of the Convertible
Unsecured Subordinate Debentures. As a consequence of the Company being in
breach of a financial covenant under its senior secured credit facility, the
lender, Tricap Partners Ltd., has exercised its right under the loan agreement
to direct Computershare Trust Company not to make the scheduled interest
payment until further notice from the lender. Birch Mountain is working to
rectify the breach and secure the necessary additional liquidity to make the
interest payment.

    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.

    %SEDAR: 00003909E




For further information:

For further information: Birch Mountain: Tel. (403) 262-1838, Fax (403)
263-9888, Website www.birchmountain.com

Organization Profile

BIRCH MOUNTAIN RESOURCES LTD.

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