Hanwei Announces Filing of Preliminary Prospectus for Rights Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 19, 2014) -

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Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company") today announced that it has filed a preliminary short form prospectus with the securities commissions in each of the provinces of Canada related to the previously announced rights offering (the "Rights Offering") disclosed in the Company's news release dated November 13, 2014.

Each holder of record of Hanwei common shares ("Common Shares"), as of a record date to be announced, will receive rights (the "Rights") which will entitle them to participate on an equal and proportional basis in purchasing additional Common Shares. Subject to applicable law, a rights certificate and a prospectus will be mailed to each shareholder after a record date has been set for issuance of the Rights in conjunction with the filing of the final prospectus. The Rights Offering will be open for exercise for at least 21 days from the date of mailing of the final prospectus to shareholders of the Company.

In support of the Rights Offering, certain shareholders of the Company, including Mr. Fulai Lang, the Chairman of the Company's Board of Directors (collectively, the "Standby Purchasers", and each a "Standby Purchaser") have entered into a non-binding letter of intent with the Company (the "Letter of intent") in which each Standby Purchaser has indicated that he or she expects to enter into a binding standby commitment with the Company (the "Standby Purchase Agreement") before the filing of the final prospectus relating to the Rights Offering. Under the expected terms of the Standby Purchase Agreement, the Standby Purchasers have agreed to guarantee the purchase, in the aggregate, of a minimum of $3,000,000 of the Common Shares that are not otherwise subscribed for by the other holders of Rights.

An application has been submitted to the Toronto Stock Exchange (the "TSX") to approve the listing of the Rights and the Common Shares issuable upon the exercise of the Rights. Shareholders who do not wish to exercise their Rights to buy new Common Shares under the Rights Offering will have the option of selling the Rights that they receive from the Company through the TSX. Shareholders who do not exercise all of their Rights consequently will have their present ownership interests in Hanwei, as a percentage of the total outstanding Common Shares, reduced as a result of the Rights Offering.

Further details concerning the Rights Offering and the procedures to be followed by holders of Common Shares are contained in the preliminary prospectus available on the Company's profile at www.sedar.com. The preliminary prospectus is still subject to completion or amendment. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

About Hanwei Energy Services Corp.

Hanwei Energy Services Corp.'s principal business operations are in two complementary key segments of the oil and gas industry as both an equipment supplier to the industry (as a leading manufacturer of high pressure, fiberglass reinforced plastic ("FRP") pipe products and associated technologies serving major energy customers in the global energy market) and as an operator of its producing oil and gas mineral rights at its Leduc Lands in Alberta.

www.hanweienergy.com

Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES

Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company's Annual Information Form dated June 20, 2014 and Management Discussion and Analysis for the year ended March 31, 2014 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company's expectations as of the date of this press release.

THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.