Western Energy Services Corp. Announces $75 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - March 8, 2011) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Western Energy Services Corp. (TSX VENTURE:WRG) ("Western" or the "Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters co-led by Cormark Securities Inc. and RBC Capital Markets and including Raymond James Ltd., Peters & Co. Limited, AltaCorp Capital Inc., FirstEnergy Capital Corp., and HSBC Securities (Canada) Inc. (collectively, the "Underwriters") pursuant to which the Underwriters have agreed to purchase 192,500,000 common shares ("Common Shares") at an issue price of $0.390 per Common Share for gross proceeds to Western of approximately $75 million (the "Offering").

Western has also granted the Underwriters an option (the "Over-Allotment Option") to purchase up to an additional 28,875,000 Common Shares to cover over-allotment, if any, for additional gross proceeds of approximately $11 million. The Over-Allotment Option is exercisable in whole or in part for a period of 30 days following closing of the Offering.

The Offering is scheduled to close on or about March 29, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange. Proceeds of the offering will be used for the repayment of debt, for future acquisitions and for general corporate purposes. The Common Shares will be offered in certain provinces of Canada by way of a short form prospectus.

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

ADVISORY: This press release contains forward looking statements which may include statements concerning completion of any proposed acquisitions, capital programs, debt, funds flow from operations, closing date of the offering and the anticipated use of the net proceeds of the offering. Although Western believes that the expectations reflected in these forward looking statements are reasonable, undue reliance should not be placed on them because Western can give no assurance that they will prove to be correct. Since forward looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Any proposed acquisition may not be completed if required approvals or some other condition to closing is not satisfied. The closing of the offering could be delayed if Western is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that any proposed acquisition or offering will not be completed within the anticipated time or at all. The intended use of the net proceeds of the offering by Western might change if the board of directors of Western determines that it would be in the best interests of Western to deploy the proceeds for some other purpose.

The forward looking statements contained in this press release are made as of the date hereof and Western undertakes no obligations to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.