STT Enviro Corp. Reports Financial Results for Quarter ended March 31, 2017

TORONTO, ON--(Marketwired - May 12, 2017) - STT Enviro Corp ("STT" or the "Company") (TSX VENTURE: STT) today reported financial results for its quarter ended March 31, 2017 of approximately $6.6 million of revenue, EBITDA of ($144,377) and net loss after tax of $937,890. For the quarter ended March 31, 2016, the Company achieved revenue of approximately $7.2 million, EBITDA of ($50,920) and net loss after tax of $124,061.

Financial Highlights for the Quarter and Year-to-Date:

David Deacon, Chief Executive Officer, commented, "Results for the quarter were heavily affected by the settlement of the Wildcat lawsuit and costs associated with the Carmeuse takeover offer, collectively totaling approximately $1,013,000. Beyond that, earnings were hampered by low overall revenue and a slow quarter for our Solutions group, which has historically provided a greater margin boost. The second quarter looks much better, with higher overall revenues and gross margins expected."

Mr. Deacon also commented on the progress of the STT/Xogen memorandum of understanding ("MOU") signed in January, "The terms of the MOU provide STT with the exclusive right until May 31, 2017 to negotiate a joint venture agreement or manufacturing agreement with respect to the commercialization of the Xogen technology. Due to regulatory pressures, potential clients are showing a high level of interest and Xogen expects to install several pilot plants in the near term which should lead to commercial orders shortly thereafter. If adoption rates meet expectations, this will become a high growth revenue stream for STT in 2018 and beyond, both diversifying the business and bringing a highly differentiated product into the fold."

Mr. Deacon continued, "The work relating to the friendly takeover offer by Carmeuse has occupied quite a lot of our time over the last several months. As the Company's independent special committee of the board of directors confirmed in the directors' circular which was mailed to shareholders with Carmeuse's takeover bid circular, the offer is fair from a financial point of view to our shareholders. As well, I believe this is a very positive outcome for our employees as Carmeuse has a wonderful 150 year heritage of fine operations around the world."

The Company will hold a conference call to discuss the financial results on May 17, 2017 at 11:30 am Eastern time. The call-in numbers are (International) + 201-689-8031 or (toll free) 877-407-8031.

The financial statements and MD&A are available on SEDAR and have also been posted on the company's website a http://www.sttenvirocorp.com/investors/financials.

About STT Enviro Corp.
STT Enviro Corp. (TSX VENTURE: STT) supplies cost-effective, incremental, environmental improvements to traditional industrial products. The Company's two operating groups, STT Enviro Corp Systems & Solutions and STT Enviro Corp Tanks & Industrial, work to reduce their customers' environmental footprint, cost efficiently.

STT Enviro Corp Systems & Solutions engineers and supplies chemical make-down systems to neutralize pollutants (usually acid water) created in the ore or oil recovery process; and aftermarket services including optimization of chemical use for our customers to lower costs and reduce their carbon footprint.

STT Enviro Corp Tanks & Industrial engineers and supplies bolted tanks with a smaller environmental footprint for both dry and liquid storage applications.

Environmental considerations are prerequisites in modern industrial expansion and STT Enviro Corp. is focused on being a leader and innovator on incremental environmental improvements. The Company's strategy is to grow organically and, longer term, to acquire companies at prices which are strategically and financially accretive.

For more information, please visit our website at www.sttenvirocorp.com.

Caution Regarding Forward-Looking Information and Non-IFRS Measures

Forward-Looking Information
This news release contains certain forward-looking statements. These statements relate to future events or future performance and reflect management's current expectations and assumptions regarding the growth, results of operations, performance, and business prospects and opportunities. Such forward-looking statements reflect management's current beliefs and expectations and are based on information currently available to management of the Company. In particular, statements regarding the future operating results and economic performance are forward-looking statements. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements, including risks outlined under "Risk Factors" in our Annual Information Form, which is posted at www.sedar.com. In evaluating these statements, investors should specifically consider various factors, including such risks as Investment Risk; Business Valuations; Condition of Capital Markets; Dependence on Key Personnel; General Economic Factors; Interest Rate Risk; Competition; and Reliance on Key Suppliers. One or more of these "Risk Factors" could cause actual events or results to differ materially from any forward-looking statement. These factors should not be considered exhaustive. Although the forward-looking statements contained in this press release are based on what management of the Company considers to be reasonable assumptions based on information currently available to them, there can be no assurance that actual events or results will be consistent with these forward-looking statements, and management's assumptions may prove to be incorrect. These forward-looking statements are made as of the date of this press release, and none of STT nor its directors assume any obligation to update or revise them to reflect new events or circumstances. Undue reliance should not be placed on forward-looking statements.

Non-IFRS Measures
The term "EBITDA" is a financial measure used in this document which is not a standard measure under International Financial Reporting Standards ("IFRS"). The Company's method of calculating EBITDA may differ from the methods used by other issuers. Therefore, STT's measure of EBITDA, as presented in this press release, may not be comparable to similar measures presented by other issuers. EBITDA refers to net earnings determined in accordance with IFRS before depreciation, amortization of intangible assets, gain or loss on disposal of property and equipment, interest expense, accretion expense, special charges and recoveries, stock compensation expense and income tax expense. Management believes that EBITDA is a useful supplemental measure of cash available for debt service, working capital, capital expenditures, income taxes, and distribution. Investors are cautioned that EBITDA, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

The term "backlog" is a financial measure used in this document which is not a standard measure under IFRS. The Company's method of calculating backlog may differ from the methods used by other issuers. Therefore, STT's measure of backlog, as presented in this press release, may not be comparable to similar measures presented by other issuers. Backlog is the value of revenue remaining to be earned from purchase orders received from customers. The projects represented in backlog are executed according to a schedule agreed with each customer, which could range in duration from one month to eighteen months. Revenues are earned on a percentage of completion basis. Management uses this measure to i) monitor the Company's success in securing new orders, and ii) gauge the likelihood of meeting revenue objectives in future periods.

Investors are cautioned that backlog, as a non-IFRS measure, is not an alternative to measures under IFRS and should not, on its own, be construed as an indicator of performance or cash flows, a measure of liquidity or as a measure of actual return.

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 of this release.