Mullen Group Ltd. Announces $100 Million Bought Deal Offering and Concurrent $10 Million Investment by the Mullen Family and Insiders

OKOTOKS, ALBERTA--(Marketwired - April 26, 2016) -

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

Mullen Group Ltd. ("Mullen Group" and/or the "Corporation") (TSX:MTL) announced today that it has entered into an agreement to sell 7,519,000 common shares ("Shares") on a bought deal basis at a price of $13.30 per Share (the "Issue Price") to a syndicate of underwriters led by TD Securities Inc. for gross proceeds of $100,002,700 (the "Offering"). In addition, the Corporation has granted the underwriters an over-allotment option, exercisable for a period of 30 days following closing of the Offering to purchase up to an additional 1,127,850 Shares which, if exercised, would increase the gross offering size to $115,003,105, to cover over-allotments, if any, and for market stabilization purposes. The Offering is expected to close on or about May 17, 2016, and is subject to the approval of securities regulatory authorities and the Toronto Stock Exchange.

Concurrent with the closing of the Offering, the Mullen family and certain directors, officers, and employees of the Mullen Group will purchase up to 752,000 Shares (approximately $10 million) on a non-brokered private placement basis at the Issue Price (the "Private Placement").

The net proceeds from the Offering and the Private Placement will be used to temporarily repay bank indebtedness, to transact on potential strategic acquisitions, support future growth initiatives and for general corporate purposes.

The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

This news release contains certain "forward-looking statements" and certain "forward-looking information" as defined under applicable Canadian securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to the use of proceeds and the timing of the completion of the Offering and the completion of the Private Placement. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in the Corporation's periodic filings with Canadian securities regulators. These factors include uncertainties inherent to current capital markets, the ability to receive any required approvals or consents in connection with the Offering, the ability of the Mullen Group to satisfy the conditions of the Offering or otherwise close the Offering, and other related risks and uncertainties. Mullen Group believes that the expectations reflected in this news release are reasonable, but results may be affected by a variety of variables. The forward-looking information contained herein is made as of the date of this news release and Mullen Group disclaims any intent or obligation to update publicly any such forward-looking information, whether as a result of new information, future events or results or otherwise, other than as required by applicable Canadian securities laws. Mullen Group relies on litigation protection for "forward-looking" statements.

Mullen Group is a company that owns a network of independently operated businesses. The Corporation is recognized as one of the leading suppliers of trucking and logistics services in Canada and provides a wide range of specialized transportation and related services to the oil and natural gas industry in western Canada - two sectors of the economy in which Mullen Group has strong business relationships and industry leadership. The corporate office provides management and financial expertise, technology and systems support, shared services and strategic planning to its independent businesses.

Mullen Group is a publicly traded corporation listed on the Toronto Stock Exchange under the symbol "MTL". Additional information is available on our website at www.mullen-group.com or on SEDAR at www.sedar.com.