Entrec Announces $25 Million Bought Deal Financing

SPRUCE GROVE, ALBERTA--(Marketwire - Feb. 1, 2012) -

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

Entrec Transportation Services Ltd. ("ENTREC") (TSX VENTURE:ENT) is pleased to announce that it has entered into an agreement with GMP Securities L.P. and a syndicate of underwriters including Stifel Nicolaus Canada Inc., AltaCorp Capital Inc., Canaccord Genuity Corp. and Raymond James Ltd. (collectively, the "Underwriters"), which have agreed to purchase, on a bought deal basis 21,739,131 common shares (the "Common Shares") of the Company at a price of $1.15 per Common Shares, for aggregate gross proceeds of $25,000,000.65. The Underwriters will also have the option, exercisable in whole or in part at any time on or up to 30 days after the closing of the offering, to purchase up to an additional 3,260,869 Common Shares. In the event that the option is exercised in its entirety, the aggregate gross proceeds of the offering will be $28,750,000.

The Company plans to use the net proceeds from the offering to fund potential future acquisitions and general corporate and working capital purposes.

The offering is scheduled to close on or about February 21, 2012 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.

The Common Shares will be offered by way of a short form prospectus to be filed in all of the provinces of Canada (other than the Province of Quebec) pursuant to National Instrument 44-101 Short Form Prospectus Distributions and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the United States Securities Act of 1933, as amended.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

About ENTREC

ENTREC specializes in the transportation and rigging of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".

Forward-looking statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.

Examples of such forward-looking statements in this press release relate to, but are not limited to: ENTREC's expectation that the Offering will close as expected or at all. Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Entrec. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.