Mr. Neal Coleman reports

PULSE SEISMIC INC. REPORTS Q2 2014 RESULTS AND DECLARES QUARTERLY DIVIDEND

Pulse Seismic Inc. has released its financial and operating results for the three and six months ended June 30, 2014. The unaudited condensed consolidated interim financial statements and management's discussion and analysis will be filed on SEDAR and will be available on Pulse's website.

Pulse has declared a quarterly dividend of two cents per common share. This dividend will be paid on Sept. 19, 2014, to shareholders of record at the close of business on Sept. 5, 2014. Dividends are designated as an eligible dividend for Canadian income tax purposes. For non-resident shareholders, Pulse's dividends are subject to Canadian withholding tax.

Highlights for the three and six months ended June 30, 2014

Pulse's key performance metrics, which include cash EBITDA (a), shareholder free cash flow (a), funds from operations (b), and net earnings or loss, all improved in the three-month period ending June 30, 2014, over the prior year's period. The improvement resulted from the period-over-period increase in data library sales.

For the six months ended June 30, 2014, the period-over-period reduction in data library sales and participation survey revenue reduced Pulse's key performance metrics, with the exception of net loss.

The net loss in both prior-year periods was increased by the record seismic amortization expense recorded upon completion of the 2012 to 2013 winter seismic surveys.

Seismic data library sales for the second quarter of 2014 increased to $7.3-million from $4.5-million for the comparable period in 2013. Seismic data library sales for the six months ended June 30, 2014, were $12.8-million compared with $18.4-million for the first half of 2013.

Total seismic revenue (including revenue from participation surveys) was $7.3-million for the three months ended June 30, 2014, and $12.8-million for the six months ended June 30, 2014, compared with $4.8-million and $31.8-million for the respective periods in 2013. There were no participation surveys in progress during the first two quarters of 2014. The company recognized $13.4-million of participation survey revenue for the 2012 to 2013 winter seismic surveys in the first half of 2013.

Cash EBITDA (earnings before interest, taxes, depreciation and amortization) was $5.5-million (nine cents per share basic and diluted) for the second quarter of 2014 compared with $2.3-million (four cents per share basic and diluted) for the comparable period in 2013. Cash EBITDA was $9.2-million (16 cents per share basic and diluted) for the six months ended June 30, 2014, compared with $13.6-million (22 cents per share basic and diluted) for the six months ended June 30, 2013.

Shareholder free cash flow was $5.2-million (nine cents per share basic and diluted) for the second quarter of 2014 compared with $2.8-million (five cents per share basic and diluted) for the comparable period in 2013. Shareholder free cash flow was $8.8-million (15 cents per share basic and diluted) for the six months ended June 30, 2014, compared with $13.2-million (22 cents per share basic and diluted) for the first half of 2013.

A net loss of $612,000 (including non-cash amortization expense of $5.8-million) was incurred in the second quarter of 2014, bringing the net loss for the six months ended June 30, 2014, to $2.4-million (including non-cash amortization expense of $11.7-million). The net loss for the second quarter of 2013 was $15.1-million (including non-cash amortization expense of $22.3-million) and for the six months ended June 30, 2013, was $12.5-million (including non-cash amortization expense of $42.3-million).

During the second quarter of 2014, Pulse reduced its total debt (c) by $2.5-million. At June 30, 2014, total debt was $16.0-million. On July 31, 2014, Pulse made an additional $4.5-million repayment. Subsequent to the repayment, Pulse's total debt was $11.5-million, with $38.5-million available for future draws.

Pulse paid two dividends of two cents per share each in the second quarter, totalling $2.4-million. The first, paid in April, had been declared in the first quarter, and the second dividend, paid in June, was declared in the second quarter of 2014.

               SELECTED FINANCIAL AND OPERATING INFORMATION
               (thousands of dollars except per-share data)

                                                       Three months ended
                                                                 June 30,
                                                      2014           2013
Revenue
Data library sales                                  $7,321         $4,486
Participation surveys                                    -            361
Total revenue                                        7,321          4,847
Amortization of seismic data library                 5,842         22,287
Net (loss)                                            (612)       (15,081)
Per share basic and diluted                          (0.01)         (0.25)
Cash EBITDA (a)                                      5,467          2,298
Per share basic and diluted (a)                       0.09           0.04
Shareholder free cash flow (a)                       5,246          2,849
Per share basic and diluted (a)                       0.09           0.05
Funds from operations (b)                            8,796          1,982
Per share basic and diluted (b)                       0.15           0.03
Capital expenditures
Participation surveys                                    -            515
Seismic data purchases and related costs               184            290
Property and equipment additions                         7             75
Total capital expenditures                             191            880

(a) The company's continuous disclosure documents provide discussion and
analysis of cash EBITDA, cash EBITDA per share, shareholder free
cash flow and shareholder free cash flow per share. These financial
measures do not have standard definitions prescribed by IFRS 
(international financial reporting standards) and, therefore, may not be 
comparable with similar measures disclosed by other companies. 
(b) Funds from operations is an additional GAAP (generally accepted 
accounting principles) measure. 
(c) Total debt is defined as long-term debt, including current portion,
excluding deferred financing costs.
(d) TTM cash EBITDA is defined as the sum of the trailing 12-month cash
EBITDA and is used to provide a comparable annualized measure.

Outlook

Pulse's low-cost structure and strong balance sheet enable the company to continue operating under low revenue levels and still provide returns to shareholders. The moderate quarter-over-quarter improvement in data library sales generated significantly higher cash EBITDA and shareholder free cash flow.

Pulse maintains its cautious outlook for the remainder of 2014. The current environment continues to be depressed, while conversely there are also signs of improvement. There has been developing momentum in publicly announced asset transactions as well as mergers and acquisitions in 2014. Natural gas prices have eased somewhat since the first quarter, but the AECO spot price remained in the $4-per-gigajoule range throughout July. Hydraulic fracturing providers are known to be busy, suggesting a reasonable pace of capital spending by oil and natural gas producers. There is some uncertainty whether these activities will translate into more active data library sales.

In June, the Canadian Association of Oilwell Drilling Contractors issued a slight upward revision to its 2014 drilling forecast, noting higher-than-forecast fleet utilization and a larger number of total drilling days in the second quarter. In the latest forecast, 11,494 wells are forecast to be completed in 2014, up from 11,102 in 2013.

Pulse will continue to practice prudent cost and capital management and remain focused on generating returns for shareholders.

Conference call

The company's next conference call will be held after the release of its year-end 2014 results.

We seek Safe Harbor.