Mr. Nikolaus Kiefer reports

PETROWEST ANNOUNCES $10 MILLION BOUGHT DEAL FINANCING; REAFFIRMS 2016 ADJUSTED EBITDA GUIDANCE

Petrowest Corp. has entered into an bought-deal financing with a syndicate of underwriters, co-led by Beacon Securities Ltd. and Dundee Securities Ltd., and including Haywood Securities Inc., PI Financial Corp., Mackie Research Capital Corp. and Cormark Securities Inc., which have agreed to purchase from the company, on a bought-deal basis, 28,571,500 Class A common shares of the company at a price of 35 cents per common share for gross proceeds of $10,000,025. The underwriters will have an option to purchase up to an additional 15 per cent of the common shares issued under the offering at a price of 35 cents per common share to cover overallotments exercisable in whole or in part at any time until 30 days after the closing. In the event that the overallotment option is exercised in its entirety, the aggregate gross proceeds of the offering will be $11,500,028.75. Certain officers and directors of Petrowest intend to participate by purchasing approximately 10 per cent of the common shares issued under the offering.

The net proceeds of the offering will be used to reduce indebtedness and for general corporate and working capital purposes.

The offering is scheduled to close on or about April 27, 2016, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

The common shares will be offered by way of a short-form prospectus to be filed in certain of the provinces of Canada pursuant to National Instrument 44-101 -- short-form prospectus distributions -- and in the United States to qualified institutional buyers pursuant to exemptions from the registration requirements under Rule 144A of the U.S. Securities Act of 1933, as amended, in a manner that does not require the common shares to be registered in the United States.

Reaffirms 2016 outlook

On Jan. 18, Petrowest announced that it currently expects its base business and the Site C main civil works contract to achieve approximately $45-million in adjusted earnings before interest, taxes, depreciation and amortization in 2016, which compares with approximately $11-million in 2015 and $35-million in 2014. In addition, 2016 is expected to bring numerous additional opportunities on the infrastructure development side which are further highlighted below.

Additional emerging opportunities in 2016

Looking forward, 2016 presents Petrowest with a number of major industry events which include:

• Increased Western Canadian infrastructure activity, including both road building and civil construction, following the completion of both provincial and federal elections. Petrowest has been invited to bid on specific projects in Saskatchewan, Alberta and British Columbia, a number of which are anticipated to commence in the spring/summer of 2016;
• Continued demand in the forestry-industry-driven component of the business partly due to a weakened Canadian dollar;
• Potential final investment decision (FID) on proposed future liquefied natural gas (LNG) facilities in British Columbia. Petrowest has established firm working relationships with both companies that provide engineering and procurement services, as well as first nations, in the area.

We seek Safe Harbor.