Director Dealings

For immediate release 11 January 2012

HaloSource, Inc.

Director Dealings

HaloSource, Inc. ("HaloSource" or "the Company") (HALO.LN), the clean water and antimicrobial technology company, today announces the award of Stock Options to Martin Coles, the recently appointed CEO of the Company.

As described in its Admission Document, the Company pays some of its Directors and Non-Executive Directors their salaries in a mix of cash, Stock Options and Restricted Stock Grants (RSGs) in order to align Director and shareholder interests. The Company has issued RSGs and Options as follows:

RSGs are shares which are issued by the Company but which do not vest in the owner until certain conditions are met and may be bought back by the Company if services are not rendered. RSGs and Stock Options are issued as part of the Company's 2010 Share Option Scheme. All the shares will be "affiliate shares" and subject to certain restrictions on transfer in accordance with US securities laws; they may not be transferred at all within a year and after a year may only be transferred in accordance with Rule 144 of the US Securities Act, 1933.

Following this issuance the Company has 5,484,420 options outstanding, 574,343 common warrants outstanding and 75,377,430 common shares.

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About HaloSource

HaloSource is a clean water technology company, headquartered in Seattle, US with operations in India and China. It is focused on the provision of cleaner, clearer and safer water using its proprietary N-halamine bead technology to clean and purify water, killing bacteria and viruses that may cause disease.

While HaloPure provides safer drinking water; SeaKlear and StormKlear products use a second technology based on natural bio-polymers to provide water clarification and antimicrobial applications for treating recreational and environmental water; and HaloShield facilitates the binding of chlorine-based bleach to textiles such as sheets, lab coats and towels.