Mr. Rod Hauser reports

LEADER ENERGY SERVICES REPORTS THIRD QUARTER 2014 RESULTS

Leader Energy Services Ltd. has released its financial and operating results for the three- and nine-month periods ended Sept. 30, 2014. Leader's third-quarter condensed interim financial statements, and management discussion and analysis will be filed to SEDAR on Nov. 26, 2014. For further information, please refer to those filings.

                  PERFORMANCE SUMMARY
                (in thousands of dollars)

                                         Quarter ended
                               Sept. 30,      Sept. 30,                         
                                   2014           2013

Revenue                    $      4,779    $     5,260
Operating expenses                3,217          4,022
                                  1,562          1,238
General and
administrative                      865          1,066
Amortization                        815          1,007
Finance cost                        963            895
Other                                14             18
Net (loss)                  $    (1,095)   $    (1,748)
(Loss) per share -- basic   $     (0.04)   $     (0.06)
(Loss) per share -- diluted $     (0.04)   $     (0.06)
EBITDA (1)                  $       683    $       154
Adjusted EBITDA (1)         $       691    $       178

                                     Nine months ended
                               Sept. 30,      Sept. 30,
                                   2014           2013

Revenue                     $    15,800    $    16,200
Operating expenses               12,004         12,778
                                  3,796          3,422
General and
administrative                    2,777          3,066
Amortization                      2,825          3,000
Finance cost                      2,830          2,914
(Loss) on settlement of
loans and borrowings                  -            233
Asset impairment                  2,419              -
Other                                57             78
Net (loss)                  $    (7,112)   $    (5,869)
(Loss) per share -- basic   $     (0.24)   $     (0.20)
(Loss) per share -- diluted $     (0.24)   $     (0.20)
EBITDA (1)                  $    (1,457)   $        45
Adjusted EBITDA (1)         $       987    $       361

(1) EBITDA refers to net income before finance costs,
    taxes, depreciation and amortization. As the company
    has not recorded any provision for income taxes,
    taxes have been excluded from the reconciliation.
    Adjusted EBITDA is calculated as EBITDA before non-
    cash losses on the settlement of loans and borrowings,
    asset impairment and share based payments. EBITDA and
    adjusted EBITDA are not measures that have a standardized
    meaning and, accordingly, may not be comparable with
    similar measures used by other companies. Management
    believes that EBITDA and adjusted EBITDA are useful
    measures of cash flow generated from operations as they
    eliminate non-cash items, non-recurring items, and the
    effects of finance costs and financial restructuring.

In the third quarter of 2014, the company reported revenues from well stimulation services of $4.8-million, as compared with $5.3-million reported in the third quarter of 2013. Despite wet weather and a slow start to the third quarter, the company experienced a consistent increase in activity during the months of July through September as compared with activity levels in the spring. During the current quarter, the company reported an increase in full-service coiled tubing activity buoyed by several large jobs in the quarter. This improvement in coiled tubing activity was more than offset by a reduction in stand-alone nitrogen work. In the third quarter of 2013, the company experienced an increase in stand-alone work utilizing significant volumes of nitrogen for gas lift activities. In the current quarter, the company continued to provide stand-alone services; however, a lower number of jobs and 40 per cent less nitrogen led to an overall 9-per-cent reduction in revenue in the quarter.

For the three months ended Sept. 30, 2014, the company reported a net loss of $1.1-million (four cents per basic and diluted share), compared with a loss of $1.7-million (six cents per basic and diluted share) for the three months ended Sept. 30, 2013. For the nine-month period ended Sept. 30, 2014, the company reported a loss of $7.1-million (24 cents per basic and diluted share), as compared with a loss of $5.9-million (20 cents per basic and diluted share) for the comparative period in 2013. Excluding the asset impairment of $2.4-million reported in the second quarter, the company reported a loss of $4.7-million for the nine-month period ended Sept. 30, 2014. The increase in operational profit, combined with lower general and administrative expenditures, lower amortization expenses, and lower finance and related expenditures, accounted for the reduced loss of $1.2-million for the nine-month period.

Asset sale

The company is in the process of arranging certain pieces of equipment for sale. Upon the conclusion of the asset sale, the company expects to retain three coiled tubing units plus one reel trailer, five nitrogen pumpers and one fluid pumper.

Outlook

Declining oil prices have created short-term uncertainty for Western Canadian sedimentary basin activity levels. October revenue was lower than anticipated, and the company anticipates lower comparative revenue for the balance of the fourth quarter of 2014 and first quarter of 2015. Recent operational and administrative cost reductions should allow the company to generate earnings before interest, taxes, depreciation and amortization over the next six months that are comparable with that experienced during the respective prior-year periods.

The company's liquidity continues to be a significant risk. With the assistance of a consultant, Leader has initiated a review of the business of the company to reduce expenses, improve performance and create shareholder value. During the third quarter, the company has undertaken a number of initiatives to reduce costs and improve cash flow, including:

• Minimizing all discretionary expenditures;
• Reducing general and administrative expenditures;
• Centralized control of all field operations spending;
• Selling certain assets to reduce outstanding debt and corresponding interest costs, and align the company's equipment base with customer demand and field personnel availability.

In addition, the company is examining all strategic alternatives to continue operations and enhance shareholder value, including, but not limited to, the merger, amalgamation, joint venture, reverse takeover or sale of the company or its business with or to another entity, or an equity transaction.

We seek Safe Harbor.