Mr. Lyle Whitmarsh reports

MATRRIX ANNOUNCES SECOND QUARTER 2018 RESULTS

Matrrix Energy Technologies Inc. has released its financial results for the three-month and six-month periods ended June 30, 2018. This news release should be read in conjunction with the corporation's unaudited interim condensed consolidated financial statements and the notes thereto for the three-month and six-month periods ended June 30, 2018, and related management's discussion and analysis (MD&A), which are available on SEDAR.

During the first half of 2018, the corporation continued its strategic priority to enter into the land-based contract drilling rig business in Western Canada by completing the acquisitions of D2 Drilling Inc. and the purchase of substantially all the assets of Red Dog Drilling Inc.

All monetary amounts contained herein are expressed in thousands of Canadian dollars, except for per-share amounts.

Second quarter 2018 summary (compared with the second quarter of 2017):

• Net loss of $1,421 increased 46 per cent from a net loss of $976;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $619, down from an adjusted EBITDA loss of $353;
• Revenue of $2,047, up 93 per cent from $1,061;
• Gross margin of 23 per cent decreased 12 per cent from 26 per cent.

Summary for the six months ended June 30, 2018 (compared with the six months ended June 30, 2017):

• Net loss of $1,220 improved 27 per cent from a net loss of $1,667;
• Adjusted EBITDA of $534, up from an adjusted EBITDA loss of $407;
• Revenue of $9,522, up 265 per cent from $2,611;
• Gross margin of 30 per cent decreased 12 per cent from 34 per cent.

                              FINANCIAL HIGHLIGHTS
         (in thousands of Canadian dollars, except per-share amounts)

                                                 Three months ended   Six months ended
                                                            June 30            June 30
                                                      2018     2017      2018     2017

Revenue                                            $ 2,047  $ 1,061   $ 9,522  $ 2,611
Adjusted EBITDA (i)                                   (619)    (353)      534     (407)
Adjusted EBITDA per share                         
Basic                                              $ (0.00) $ (0.01)  $  0.00  $ (0.01)
Diluted                                            $ (0.00) $ (0.00)  $  0.00  $ (0.01)
Net (loss)                                          (1,421)    (976)   (1,220)  (1,667)
Net (loss) per share                                                                        
Basic                                              $ (0.01) $ (0.03)  $ (0.01) $ (0.05)
Diluted                                            $ (0.01) $ (0.03)  $ (0.01) $ (0.05)
Funds flow                                            (614)    (338)      204     (387)
Gross margin (ii)                                      464      273     2,828      877
Capital expenditures                                12,026       77    12,339       77

(i) (ii) See definitions in the section on non-GAAP (generally accepted accounting
principles) measures.

Revenue

Consolidated revenue for the three-month and six-month periods ended June 30, 2018, was $2,047 and $9,522, respectively, up 93 per cent and 265 per cent from $1,061 and $2,611, respectively, for the 2017 corresponding periods. Consolidated revenue for the three-month and-six-month periods ended June 30, 2018, comprised $1,447 and $6,935, respectively, related to the land-based contract drilling rig segment, and $600 and $2,587, respectively, related to the horizontal and directional drilling segment.

Adjusted EBITDA

Consolidated adjusted EBITDA for the three-month and-six-month periods ended June 30, 2018, was a loss of $619 and $534, respectively, as compared with adjusted EBITDA losses of $353 and $407, respectively, for the 2017 corresponding periods. Consolidated adjusted EBITDA for the three-month and-six-month periods ended June 30, 2018, comprised a loss of $39 and $1,487, respectively, related the land-based contract drilling rig segment, and losses of $580 and $953, respectively, related to the horizontal and directional drilling segment.

Net loss

Consolidated net loss for the three-month and-six-month periods ended June 30, 2018, was $1,421 and $1,220, respectively, as compared with net losses of $976 and $1,667, respectively, for the 2017 corresponding periods.

Capital expenditures

Capital expenditures for the three-month and-six-month periods ended June 30, 2018, were $12,026 and $12,339, respectively, as compared with $77 for the corresponding 2017 periods. The Q2 2018 capital expenditures were related to the purchase of drilling rig equipment, recertifications and rig upgrades. As of the date of this press release, the corporation has committed $2,072 for rig upgrades as part of its 2018 capital program.

Outlook

The corporation continues to believe activity in the Western Canadian sedimentary basin will remain challenged with similar activity levels in the second half of 2018, as compared with 2017.

The corporation has made significant capital investments over the past year with the intention of ensuring its business is well positioned to capture new customer demand while growing with its current customer base. The corporation will continue its strategic plan of purchasing high-quality assets that may provide a high rate of return for shareholders.

The corporation also continues to seek increased market share with the horizontal and directional drilling segment.

Management believes the corporation's strong balance sheet provides flexibility to grow organically and execute on strategic acquisition opportunities that align with its profitable growth strategy. The corporation remains focused on reducing variable direct operating and administrative expenses without sacrificing the quality of its service offering. By providing high-quality assets and crews, management believes the corporation will continue to help its customers grow and continue to create long-term shareholder value.

Non-GAAP measures

This press release contains references to: (i) adjusted EBITDA; and (ii) gross margin. These financial measures are not measures that have any standardized meaning prescribed by international financial reporting standards (IFRS) and are therefore referred to as non-GAAP measures. The non-GAAP measures used by the corporation may not be comparable with similar measures used by other companies.

(i) Adjusted EBITDA is defined as income (loss) before interest income, interest expense, taxes, business acquisition transaction costs, depreciation and amortization, shared-based compensation expense, gains on disposal of property and equipment, impairment expenses, interest and other income, foreign exchange, non-recurring restructuring charges, accretion of debentures and other income/expenses, and any other items that the corporation considers appropriate to adjust given the irregular nature and relevance to comparable operations. Management believes that in addition to net and total comprehensive income (loss), adjusted EBITDA is a useful supplemental measure as it provides an indication of the results generated by the corporation's principal business activities prior to consideration of how these activities are financed, how assets are depreciated, amortized and impaired, the impact of foreign exchange, or how the results are affected by the accounting standards associated with the corporation's stock-based compensation plan. Investors should be cautioned, however, that adjusted EBITDA should not be construed as an alternative to net income (loss) and comprehensive income (loss) determined in accordance with IFRS as an indicator of the corporation's performance. The corporation's method of calculating adjusted EBITDA may differ from that of other organizations and, accordingly, its adjusted EBITDA may not be comparable with that of other companies.

(ii) Gross margin is defined as gross profit from services revenue before stock-based compensation and depreciation. Gross margin is a measure that provides shareholders and potential investors additional information regarding the corporation's cash generating and operating performance. Management utilizes this measure to assess the corporation's operating performance.

We seek Safe Harbor.