Birch Mountain Delisted From American Stock Exchange

Unless the Company elects to appeal the Staff determination by August 19, 2008, it will become final on that date. The Company does not intend to appeal the Staff's determination, and it expects that its common stock will be delisted from trading on the AMEX in the near future. The Company expects that its common stock will continue to be listed on the Toronto Stock Exchange (TSX).

The Staff of the AMEX previously notified the Company on April 29, 2008 that the Company did not meet its standards for continued listing because, in the opinion of the AMEX, the Company had sustained losses that are so substantial in relation to its overall operations or its existing financial condition, or its financial condition has become so impaired, that it appeared questionable as to whether the Company would be able to continue its operations and/or meet its obligations as they mature. The Company submitted its plan, dated May 28, 2008 and supplemented July 7, 2008 for regaining compliance with the listing standards by October 2009, and the AMEX notified the Company of its acceptance of the Plan on July 16, 2008.

The Staff of the AMEX stated that the basis for its determination to delist the Company's common stock was based upon the following continued listing deficiencies: (1) the failure of the Company to make timely payment of a June 30, 2008 interest payment on its Convertible Unsecured Subordinate Debentures, which payment was a milestone requirement of the Plan, and the failure of the Company to provide information to the Staff concerning its intention and ability to renegotiate the terms of the Debentures so that the Staff does not believe that the Company can be reasonably expected to regain compliance with Section 1002(a)(iv) of the AMEX Company Guide; (2) the failure of the Company to make a public announcement by July 23, 2008 disclosing that its listing was being continued pursuant to an extension provided for under the Plan; and (3) the inconsistency between the Plan's requirements that the Company sell equity to raise additional capital and the Company's announced intention to seek an immediate sale of the Company, and that the proposed sale of the Company does not represent an acceptable method to regain compliance with the requirements of AMEX Company Guide Sections 1003(a)(i), 1003(a)(ii), 1003(a)(iii) and 1003(a)(iv). -- www.cnxmarketlink.com