Lonestar West Inc.
TSX VENTURE : LSI

Lonestar West Inc.

August 17, 2015 16:36 ET

Lonestar Announces Oklahoma Acquisition

SYLVAN LAKE, ALBERTA--(Marketwired - Aug. 17, 2015) - Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or the "Company") a premier provider of Hydrovac and Vacuum truck services is pleased to announce a strategic acquisition of certain assets of Hewitt Specialty Services, LLC ("Hewitt"), an arm's length hydrovac service company, for total consideration of $1.3 million USD.

Hewitt started operations in 2010 and is currently operating a fleet of 5 Hydrovac trucks and 1 dry vacuum truck in Cushing, Oklahoma. The acquisition is expected to add approximately $2.9 million USD in annual revenues and increases Lonestar's operating fleet from 155 units to 161 units.

"The Hewitt acquisition is consistent with our corporate growth strategy. The addition of a base that services the Cushing, Oklahoma region will complement our existing base in Elk City Oklahoma and expand our presence in the South Central United States" said James Horvath, CEO of Lonestar. "Lonestar would also like to welcome Brad Hewitt to the Company. Mr. Hewitt's experience in the Cushing area will be a valuable addition to our senior management team.

In consideration of the acquisition of certain assets of Hewitt, the Corporation cancelled accounts receivable due from Hewitt of approximately $500,000 USD and issued unsecured promissory notes (the "Notes") that mature over a five year period totaling $500,000 USD. The Notes are non-interest bearing and subject to certain performance thresholds being achieved. In addition, 299,496 common shares of the Company will be issued at a price of $1.31 CND per share for a total of $300,000 USD in the aggregate.

About Lonestar West

Based in Sylvan Lake, Alberta, Lonestar West Inc. (www.lonestarwest.com) operates a fleet of 154 HVAC and vacuum trucks throughout Canada and the United States. It is focused on profitably growing its HVAC services to become a major competitor in the North American market.

Disclaimer for Forward-Looking Information

Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. Forward-looking information may relate to the Company's future outlook and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, litigation, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements and prospects or opportunities for the Company are forward- looking statements. In some cases, forward-looking information can be identified by such terms such as "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "estimate", "predict", "potential", "continue", "likely", "schedule", or the negative thereof or other similar expressions concerning matters that are not historical facts. Although the forward-looking statements contained in this press release are based upon assumptions that management of the Company believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward- looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause actual results to differ materially from those expressed or implied by such forward-looking statements. The forward- looking statements made in this press release relate only to events or information as of the date hereof. Except as required by applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

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