Mr. Lynn Mueller reports

IWS CLOSES FINAL TRANCHE OF BROKERED PRIVATE PLACEMENT

International Wastewater Systems Inc., further to its news release dated Feb. 27, 2017, has closed the final tranche of the company's brokered private placement, led by Haywood Securities Inc. as agent.

Under the final tranche of the brokered placement, the company has issued 2,417,000 units at a price of 30 cents per unit for gross proceeds of $725,100. Each unit consists of one common share and one common share purchase warrant of the company. Each warrant entitles the holder to purchase one share until Feb. 27, 2019, at an exercise price of 40 cents per share.

The company has paid cash commissions in the amount of $31,282.50 from the sale of units under the final tranche of the brokered placement. The company has also issued to the agent and members of the selling group an aggregate of 104,275 non-transferable warrants. Each agent's warrant entitles the holder to purchase one share at a price of 30 cents until Feb. 27, 2019.

As previously announced on Jan. 19, 2017, the company amended the terms of the company's non-brokered private placement completed on Dec. 23, 2016, to offer each participant in the non-brokered placement one warrant for each share purchased in the non-brokered placement on the same terms as the brokered placement. Accordingly, the company has issued a total of 2,275,333 warrants to purchasers from the non-brokered placement.

In total, the company raised aggregate gross proceeds of $2,205,655 pursuant to the non-brokered placement and the brokered placement.

All securities distributed pursuant to the brokered placement and non-brokered placement are subject to a statutory hold period of four months and a day from the date of issuance.

About International Wastewater Systems Inc.

International Wastewater Systems is a world leader in thermal heat recovery. International Wastewater's systems recycle thermal energy from waste water, generating the most energy-efficient and economical systems for heating, cooling and hot water for commercial, residential and industrial buildings.