Mr. Richard Hoel reports

RICHARD A. HOEL ACQUIRES COMMON SHARES IN H2O INNOVATION INC.

Richard A. Hoel, a director of H2O Innovation Inc., has acquired a total of 315,000 common shares of H2O Innovation, representing approximately 0.78 per cent of the corporation's currently issued and outstanding common shares, pursuant to a private placement. On the same date, H2O Innovation issued an aggregate of 19,217,663 common shares, including a tranche of 1,041,666 common shares subject to shareholder approval.

Immediately prior to the transaction, Mr. Hoel owned an aggregate of 2,130,763 common shares, representing approximately 10.18 per cent of the corporation's then-issued-and-outstanding common shares, and 16,000 options to purchase common shares, representing, on a partially diluted basis, taking into account the exercise of all of the options held by Mr. Hoel only, 10.25 per cent of the corporation's then-issued-and-outstanding common shares. After the transaction, Mr. Hoel owns an aggregate of 2,445,763 common shares, representing approximately 6.09 per cent of the corporation's currently issued and outstanding common shares, and 16,000 options, representing, on a partially diluted basis, taking into account the exercise of all of the options held by Mr. Hoel only, 6.09 per cent of the corporation's currently issued and outstanding common shares.

The common shares were acquired by Mr. Hoel for investment purposes. Mr. Hoel may, from time to time, acquire additional securities of the corporation, dispose of some or all of the securities that he holds or might hold, or continue to hold his current position. As a current member of the board of directors of the corporation, Mr. Hoel has been and will continue to be actively involved in H2O Innovation's business, operations and planning.

The common shares issued to Mr. Hoel as part of this private placement are subject to a four-month statutory resale restriction.

Mr. Hoel will be filing a report (as contemplated by Regulation 62-103 respecting the early warning system and related takeover bid and insider reporting issues) in connection with his acquisition of the common shares.