Mr. James Horvath reports

LONESTAR ANNOUNCES FORT MCMURRAY, ALBERTA ASSET ACQUISITION

On Feb. 20, 2015, Lonestar West Inc. completed the acquisition of certain assets of Firehawk Services Ltd., an arm's-length hydrovac service provider, for total consideration of $2.73-million.

Firehawk started operations in 2010 in Fort McMurray, Alta., as a lease operator exclusively with Lonestar and is currently operating a fleet of five hydrovac units. In calendar 2014, Firehawk generated gross sales of $5.99-million.

In addition, on Feb. 20, 2015, a separate lease operator with one hydrovac unit terminated the lease operator agreement, and Lonestar purchased the hydrovac unit using term debt.

"The acquisition of Firehawk's assets brings the Lonestar lease operator program to an end, reflecting Lonestar's maturation as a corporation," said James Horvath, chief executive officer of Lonestar. "We believe that Lonestar is well positioned to deploy these assets into the corporate fleet. As of today's date, Lonestar is operating a fleet of 142 corporately owned units."

In consideration of the acquisition of certain assets of Firehawk, the corporation paid $2.48-million cash on closing using term debt. In addition, pursuant to the terms of the agreement, the company may be required to issue common shares of the company to Firehawk on the anniversary date of the agreement for a period of five years. The total common shares issued at each anniversary date is equal to $50,000 divided by the average closing price 20 days prior to the anniversary date of the company's common shares on the TSX Venture Exchange.