Lonestar Closes Private Placement Financing

SYLVAN LAKE, ALBERTA--(Marketwired - July 31, 2013) - Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company") is pleased to announce that it has closed its previously announced bought deal financing conducted by way of private placement (the "Offering"). Lonestar, through a syndicate of underwriters led by Clarus Securities Inc. and including Industrial Alliance Securities Inc. (collectively, the "Underwriters"), issued 3,900,000 common shares of the Company at a price of $2.60 per common share, for aggregate gross proceeds to the Company of $10,140,000 under the Offering.

In connection with the Offering, the Company paid a cash commission of $507,000 to the Underwriters. The net proceeds of the Offering will be used to purchase additional fleet and for general corporate purposes. The common shares issued pursuant to the Offering will be subject to a four month regulatory hold period commencing from the date of closing. The Offering is subject to TSX Venture Exchange acceptance of requisite regulatory filings.

"We are pleased by the positive response this offering received," said James Horvath, CEO. "These funds will expedite our plans to increase the size of our fleet, thereby enabling Lonestar to capitalize on the extensive opportunities available in our markets."

About Lonestar West

The Company currently operates a fleet of 55 HVAC and vacuum trucks throughout Western Canada and the United States from its base in Sylvan Lake, Alberta. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

For more information please visit the Lonestar West website at www.lonestarwest.com.

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