Lonestar West Inc.
TSX VENTURE : LSI

Lonestar West Inc.

March 22, 2011 17:30 ET

Lonestar Closes Debenture Financing

TORONTO, ONTARIO--(Marketwire - March 22, 2011) - Lonestar West Inc. (TSX VENTURE:LSI) ("Lonestar" or "the Company") announces that it has completed a secured debenture financing in the aggregate amount of $800,000 (the "Loan"). The debentures carry an annual interest rate of 16% and have a maturity date of March 31, 2013. The obligations under the debenture are secured by Lonestar's grant of a security interest in its assets (including the assets of its subsidiaries) in favour of the debenture holders. 

None of the Company's common shares or securities convertible into common shares are being issued in connection with the Loan and no commissions or finder's fees are applicable in connection with the Loan either. This secured debenture financing will provide Lonestar with funds to acquire three hydro-vac trucks. 

About Lonestar West

The Company currently operates a fleet of HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor in the market area.

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

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

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