Ridgeline Energy Services Inc.
TSX VENTURE : RLE

Ridgeline Energy Services Inc.

June 16, 2011 14:18 ET

Ridgeline Announces Completion of Private Placement

CALGARY, ALBERTA--(Marketwire - June 16, 2011) - Ridgeline Energy Services Inc. ("Ridgeline" or the "Company") (TSX VENTURE:RLE), is pleased to announce the closing of a private placement effective June 16, 2011. Further to the Company's news release dated May 3, 2011, the private placement consisted of the issuance and sale of an aggregate of 11,212,074 units (the "Units") for aggregate gross proceeds of $5,157,554 (the "Offering"). Each Unit is comprised of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable to acquire one Common Share at a price of $0.65 until June 16, 2013. The Offering was comprised of a brokered and a non-brokered segment.

Pursuant to an Agency Agreement dated June 16, 2011 between Ridgeline, Byron Capital Markets Ltd. and Intrynsyc Capital Corporation (collectively the "Agents"), the Agents assisted Ridgeline in the issuance and sale of 6,521,739 Units under the initial brokered segment of the Offering for aggregate gross proceeds of $3,000,000. The Agents also exercised an over- subscription option granted to the Agents by the Company, resulting in the issuance and sale of an additional 3,117,608 Units for aggregate gross proceeds of $1,434,100. Overall a total of 9,639,347 Units were issued pursuant to the Agency Agreement for aggregate gross proceeds of $4,434,100.

Pursuant to the terms of the Agency Agreement, Ridgeline paid the Agents a cash commission equal to 7% of the aggregate gross proceeds of the brokered portion of the Offering plus certain expenses. Ridgeline also issued 674,754 compensation options (the "Compensation Options") to the Agents. Each Compensation Option is exercisable to acquire one Unit at a price of $0.46 per Unit until June 16, 2013.

In connection with the non-brokered segment of the Offering, Ridgeline issued 1,572,727 Units raising aggregate gross proceeds of $723,454.

The Common Shares, Warrants and the Common Shares issuable upon the exercise of the Warrants are subject to a four month plus one day resale restriction pursuant to National Instrument 45-102 (Resale of Securities). The securities issued under the private placement must not be traded before October 17, 2011 unless otherwise permitted under securities legislation.

The Company intends to use the net proceeds from the private placement for further development of its water treatment business, manufacturing waste water treatment equipment and research and development of the related intellectual property.

About Ridgeline Energy Services Inc.

Ridgeline Energy Services Inc. (TSX VENTURE:RLE) is an environmental technology and consulting company focused on waste management in the oil and gas industry. Through its subsidiary Ridgeline Water Inc., the Company is developing proprietary technology capable of efficiently treating large volumes of contaminated water generated by oil and gas producers. The Company is working with energy majors in the application of proprietary technology for effective treatment of water for hydraulic fracturing, oil sands process water (SAGD and tailings ponds) and to recycle the water used in these oil and gas industry applications. Through its environmental consulting and remediation subsidiaries, Ridgeline Environment Inc. and Ridgeline GreenFill Inc., the Company has built a reputation as an established player in the provision of environmental services to Western Canada's large and growing oil and gas industry. The Company trades on the TSX Venture Exchange under the symbol "RLE". Additional information is available on the Company's website at: http://www.ridgelinecanada.com.

"This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

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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