Phoenix Oilfield Hauling Inc.
TSX VENTURE : PHN

Phoenix Oilfield Hauling Inc.

October 26, 2011 16:56 ET

Phoenix Oilfield Hauling Inc. Announces Credit Facility

CALGARY, ALBERTA--(Marketwire - Oct. 26, 2011) -

THIS PRESS RELEASE IS NOT TO BE DISTRIBUTED TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

Phoenix Oilfield Hauling Inc. ("Phoenix" or the "Company") (TSX VENTURE:PHN) announces that it has received a commitment letter from a non-arm's length party, Werklund Capital Corporation ("WCC"), for a debt financing of up to $3,500,000 (the "Facility"), which is expected to be funded in two (2) separate tranches of $2,000,000 and $1,500,000.

The term of the Facility is for two (2) months and will bear interest at a rate of 8% per annum, which interest shall accrue during the term of the Facility, but is only payable at the end of the term. Phoenix is able to repay the Facility at anytime without penalty.

David Werklund, the principal of WCC, is a director and interim officer of Phoenix, and Blake Lyon, an officer of WCC, is a director of Phoenix. WCC is also a major shareholder of Phoenix.

The proceeds of the Facility will be used to purchase equipment, to fund capital expenditures and for general corporate purposes. Pursuant to the terms of the Facility, WCC will have a security interest over the Company's assets. The WCC security interest will be subordinate to the interests of the Company's existing lenders, except for any new equipment purchased using the Facility proceeds, in which case, WCC will have a first charge over the newly purchased equipment.

The Facility is subject to review by the TSX Venture Exchange.

About Phoenix Oilfield Hauling Inc.

Phoenix is a public energy services transportation corporation operating in Western Canada, Texas and Pennsylvania.

Reader Advisory

This news release contains certain forward-looking statements, including the terms of the Facility and the use of proceeds for the Facility. These forward-looking statements are based on reasonable assumptions of the management of the Company. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with loss of markets, volatility of commodity prices, fluctuations in foreign exchange or interest rates, environmental risks, competition from other companies, ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, the lack of availability of qualified personnel or management, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All forward-looking statements contained in this press release are expressly qualified in their entirety by these cautionary statements.

The forward-looking statements contained in this news release are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Neither 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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