Birch Mountain Resources Ltd. (Birch) is a Canadian company exploring and preparing to develop its mineral leases and permits in Northern Alberta. The Company holds metallic and industrial mineral rights over a portion of the Athabasca region north of Fort McMurray, Alberta. Birch operates separate divisions for industrial minerals, and mineral exploration and technology. The Industrial Minerals division is engaged in the acquisition, exploration and development of its mineral leases and permits. The Company also engages in ongoing exploration and research of mineral technology. Birch has opened a limestone quarry and aggregate processing plant, and is developing a limestone processing facility to produce quicklime, cement and other products. The Company formed its Industrial Minerals Division in June 2002, to pursue market opportunities for the development of limestone on its Athabasca mineral properties and for the sale of limestone products to the oil sands industry. During the year ended December 31, 2005, Birch opened the Muskeg Valley Quarry (MVQ). During 2005, the Company contracted NORAMAC Ventures Inc. for site clearing, access road construction, and for weigh scale and scale house installation. NORAMAC is a joint venture between North American Construction Group, a road-building contractor in the region, and the Fort McKay Group of Companies, a group of businesses owned and operated by the Fort McKay First Nation. This site construction work is substantially complete, allowing the opening of the MVQ in December 2005. During 2005, Birch contracted with a local established aggregate company to be the quarry operator for the MVQ. Birch's mineral properties are located in the Province of Alberta, where it holds metallic and industrial mineral permits, metallic industrial mineral leases and permit-to-lease conversions. The Company's mineral properties are all located in northeast Alberta and are collectively called the Athabasca mineral property. Since 2002, Birch's Industrial Minerals Division has explored the Athabasca mineral property for limestone and the Company is focused on commencing the operations of a limestone quarry and quicklime plant. The MVQ and the Hammerstone Project are located within Birch's Athabasca mineral property. As of February 28, 2006, the Company's mineral interests covered 402,748 hectares (995,208 acres). Birch's mineral leases convey the rights to develop and produce metallic and industrial minerals, including limestone, while the permits allow the Company to explore for these same minerals.

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