Mr. Robert King reports

WESTERNONE ANNOUNCES WINDING-DOWN AUSTRALIA OPERATIONS TO FOCUS ON NORTH AMERICAN OPPORTUNITIES

WesternOne Inc. is winding down its operations in Australia. To ensure an efficient wind-down process, the Australian operations have been placed into voluntary administration. WesternOne is taking this action to focus both its management and its capital resources on significant opportunities in North America, including continuing capital investments in Northern Alberta's oil and gas sector, new major investments in the shale oil and gas sector in the United States, and the liquefied natural gas and related infrastructure projects proposed for British Columbia.

"The decision to wind down these operations follows a thorough review of the current challenging business environment in Australia and the impact it was having on the financial results of our Australian operations," said Robert King, chief executive officer. "The downturn in Australia's resource market started in 2012 when economic growth in China decelerated. We acquired the Australian business in early 2013 with the expectation that the downturn had largely bottomed out. Unfortunately, the weakness in this market has persisted, and despite continual downsizing of that business, we do not see the prospects for a turnaround in the performance of our Australia operations in the near term. The Australian operations do not constitute a substantial portion of WesternOne's overall business."

Britco, WesternOne's modular building platform, continues to execute major work force accommodations projects in Western Canada, including a 2,000-bed complex in Northern Manitoba for Manitoba Hydro and a 1,600-room facility for Devon Energy in Northern Alberta. WIS, WesternOne's infrastructure services platform, continues to benefit from the robust construction and infrastructure sectors within Western Canada and is expanding its market through fleet investments and launching new branches.

As previously announced, Peter Blake becomes chief executive officer of WesternOne, effective Sept. 1, 2014.

"Peter's extensive knowledge and experience will help refocus our long-term growth strategy in the construction and infrastructure sectors within Western Canada and the United States," said Mr. King. "Our pipeline of work in North America has never been stronger, and we are booked well into 2015 at all of our Britco modular facilities in Canada and the United States."

WesternOne's preliminary financial results for the three months ended June 30, 2014, indicate estimated consolidated revenue of approximately $112.1-million and consolidated adjusted earnings before interest, taxes, depreciation and amortization of approximately $10.5-million. Excluding the impact of the Australian business, estimated consolidated revenue was approximately $98.7-million, and consolidated adjusted EBITDA was approximately $12.6-million. As a result of its intention to wind down its operations in Australia, WesternOne expects to write off from these operations the remaining intangible assets totalling $6.2-million and deferred income tax assets and tangible capital assets of $4.0-million in 2014, representing less than 2.9 per cent of WesternOne's estimated total consolidated assets of $353.9-million as of June 30, 2014. This is in addition to a goodwill and intangibles impairment charge of $25.9-million that was recognized for WesternOne's Australian operations for the year ended Dec. 31, 2013.

These preliminary financial results for the three months ended June 30, 2014, are based on management's estimates and have not yet been approved of by WesternOne's audit committee or its board of directors. WesternOne's final financial results for its second quarter, which are scheduled for release on Aug. 7, 2014, could differ from these preliminary financial results.

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