Mr. James Hill reports

GASFRAC ANNOUNCES EQUIPMENT SALE

Gasfrac Energy Services Inc. has sold certain of its parked equipment for proceeds of $9.3-million resulting in a book gain.

Jim Hill, chief executive officer, stated: "The equipment sold was in excess to our current needs, and the funds will be used to pay down outstanding bank debt providing improved financial flexibility for the company as we increase our Hybrid LPG capacity and expand our fluid systems capabilities. After completion of the sale, the company has 125,000 hydraulic horsepower, providing sufficient capacity for growth of our operations in Canada and the USA. Our focus in 2014 is to leverage the new capabilities we introduced during 2013 to increase customer trials and conversions. We have completed work with five new customers so far during the first quarter of 2014, demonstrating the early success of this initiative."

We seek Safe Harbor.