Mr. Evan Price reports

CO2 SOLUTIONS PROVIDES UPDATE ON CARBON CAPTURE PROJECT WITH HUSKY ENERGY

CO2 Solutions Inc. is providing an update on the progress of its pilot project with Husky Energy for the capture of carbon dioxide in the oil industry.

As announced in April, 2014, CO2 Solutions entered into a collaboration agreement with Husky Energy to install and operate a pilot unit at Husky's Pikes Peak South heavy oil site in Saskatchewan. To accommodate operating parameters within the project budget, the facility will now be sized to capture up to 10 tonnes of CO2 per day. The project is financed in part by the Canadian government's ecoENERGY innovation initiative program, as previously announced on Jan. 24, 2013.

In line with its earlier communicated schedule, CO2 Solutions has now completed the design review and detailed engineering phase for the pilot installation in collaboration with consulting engineering firm Seneca, based in Montreal. A rendering of the pilot plant can be viewed at the company's website. Procurement has started, and construction is planned to be completed in early calendar first-quarter 2015, with commissioning of the pilot plant also scheduled for calendar first-quarter 2015. Operation of the pilot unit is expected to conclude in calendar third quarter of 2015, which would represent over 2,500 hours of field operation of the technology.

"We are progressing well and according to plan with this key project towards the commercialization of our technology," said Evan Price, president and chief executive officer of CO2 Solutions. "Seneca is a first-class engineering firm with [a] proven track record at building pilot units, and we are pleased to have them as a member of our team. Successful completion of the project will significantly enhance our position towards becoming a key low-cost provider of CO2 and will allow us to pursue the many opportunities we have identified for the commercial application of our technology, such as in enhanced oil recovery."

In April, 2014, the company announced it had exceeded the second set of technical performance milestones in large bench-scale testing, validating the technology's ability to realistically lower the cost of CO2 capture to significantly below that associated with current carbon capture technologies.

About Seneca

Seneca is a private consulting engineering company based in Montreal active in the highly specialized field of industrial processes, supporting Canadian and international industrial corporations by providing professional services for capital investment projects, the introduction of new technology and technological innovation projects.

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