Clarification on Transaction

TORONTO, ONTARIO--(Marketwire - May 18, 2012) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE U.S.

Mackie Research Capital Corporation, on behalf of its syndicate (the Underwriters) hereby announces that following discussions with certain Canadian securities regulatory authorities (the Regulators) with respect to a $10 million dollar bought deal financing for Ridgeline Energy Services Inc. announced on May 14 and updated by way of a news release dated May 15, 2012, the Regulators are concerned that the marketing conducted in conjunction with the bought deal financing was not compliant with Part 7 of National Instrument 44-101 Short Form Prospectus Distributions (NI 44-101) concerning the permitted pre-marketing of bought deal financings. The Regulators are of the view that the marketing of the $10 million dollar financing when the full $10 million dollars had not been committed as a bought deal was an improper use of the exemption provided by Part 7 of NI 44-101.

As a result, the Underwriters and Underwriters' counsel have acknowledged that while they were attempting to provide transparency regarding the offering, they recognize the concerns expressed by the Regulators, and that it is not acceptable to the Regulators to pre-market securities that are not the subject of a bought deal.

A preliminary receipt for the preliminary short form prospectus of Ridgeline Energy Services has been issued today in connection with this offering and subject to regulatory approval, the closing of the offering is anticipated on or before June 4, 2012.