SOURCE: Sionix Corporation

Sionix Corporation

March 12, 2012 09:35 ET

Sionix Corporation Forms First Asset Controlling Partnership

Williston Basin I, LLC Funded With $1,350,000

LOS ANGELES, CA--(Marketwire - Mar 12, 2012) - Sionix Corporation (OTCBB: SINX) ("Sionix" or the "Company") announced today the formation of Williston Basin I, LLC ("Williston"), a Nevada limited liability company, of which the Company owns a 60% interest. Williston was formed with an initial capital contribution of $1.35 million representing 40% of the membership interests in the subsidiary. Of that 40% interest, 22% is held by RevH2O LLC, a longtime Sionix shareholder, and the remaining 18% by subscribers in prior equity offerings of Sionix.

Sionix contributed a standard Mobile Water Treatment System ("MWTS") to the Williston venture, which is specifically designated for operation in the Williston Basin of North Dakota for treatment of water contaminated by harvesting of energy resources in this region. Sionix personnel will be responsible for the operation and maintenance of the MWTS and their performance under the recently announced contract with McFall Incorporated, a Washington based construction and logistics firm operating as a Master Service Contractor to major E & P companies in the Williston Basin.

Proceeds from this subscription in Williston will be allocated to component additions on the MWTS to adapt to specific hydrologic, geologic and chemical conditions in the Williston Basin; certain auxiliary assets, including rolling stock, surge and storage tanks, internet service, etc.; and most importantly, working capital to support initial operations for a period of up to 90 or more days prior to scheduled payments for services rendered to McFall.

"The formation and operation of Williston signifies the migration of Sionix from a supplier of water treatment equipment to a supplier of water treatment services," states James Currier, Chief Executive Officer of Sionix. "Changing regulatory conditions, continued depletion of scarce water resources, and recycling water for multiple uses at or near sources of contamination has been our ultimate objective at Sionix, and our recently announced 'Asset Controlling Partnership Program' provides an ideal vehicle to achieve that objective," Currier continued.

The Company expects to use their ACP Program for further deployments in the Williston Basin, as well as other lucrative energy bearing shale formations in the continental United States. As other vertical markets are addressed, the ACP model may well have further applications in those areas.

About the Bakken Shale Formation of the Williston Basin
The Bakken Shale Formation can be found in the Williston Basin, which stretches across North Dakota, Montana, South Dakota, Manitoba and Saskatchewan. In total, the basin covers roughly 300,000 square miles. The basin will become the second largest oil producing area as a direct result of hydraulic fracking, horizontal drilling, and artificial permeability practices. These technologies, using an average of 5 million gallons of water per well has created opportunities for water treatment and recycling that would ordinarily be disposed of in deep injection wells. Many industry experts believe these processes will liberate energy resources in 30 + shale formations across the United States and make the country substantially more energy efficient. Remediation of the large amounts of water necessary to support the energy harvesting activities are mission critical to the industry's sustainability, future expansion, and success. Sionix believes it is poised to be a key player in this water remediation process.

About Sionix Corporation
Sionix designs innovative and advanced MWTS intended for use in energy, government facilities, healthcare facilities, emergency water supplies during natural disasters, housing development projects, and various industrial processes including subterranean fracturing used in oil and gas drilling. These systems can be located adjacent to contaminated water sites or as a pre-treatment for reverse osmosis and other membrane applications. Industries involved in dairy, agribusiness, meat processing, mining, poultry operations, and many others can benefit from Sionix' cost-effective, easily maintained, portable water treatment systems. For more information about the company, go to www.sionix.com.

About Sionix Technology
Using a patented dissolved air flotation (DAF) technology packaged in a mobile shipping container, air bubbles between the size of 1 and 2 microns are injected and float organic contaminants to the surface where 99.95% are skimmed off, and a majority of inorganic contaminants are also captured and removed. This compares to standard DAF units which historically have been limited to using bubble sizes of 50 microns or larger. The size of these bubbles is important because the smaller the bubble, the greater the surface tension. They can then hold together longer and elevate more organic contaminants to the surface for removal.

Forward-Looking Statements
All statements in this press release that are not statements of historical fact are forward-looking statements, including any projections of earnings, revenue, or other financial items, any statements of the plans, strategies, and objectives of management for future operations, any statements concerning proposed new products, services or developments, any statements regarding future economic conditions or performance, statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this press release and are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. The risks and uncertainties include, but are not limited to, whether Sionix Corporation can raise capital as and when it needs to, whether the water purification systems will generate significant sales, whether it can compete successfully in its market and industry, and other factors beyond the control of Sionix Corporation, including those detailed from time to time in the reports filed with the Securities and Exchange Commission. Sionix Corporation assumes no obligation and does not intend to update these forward-looking statements.

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