Director Dealings

For immediate release 22 March 2012

HaloSource, Inc.

("HaloSource" or "the Company")

Director dealings

Seattle, U.S.A. - HaloSource, Inc. (HALO.LN), the clean water and antimicrobial technology company traded on London's AIM, today announces the award of Stock Options to Martin Coles, the CEO of the Company, and James Thompson, the CFO 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 Stock Options as follows:

Each of the options granted today is exercisable at US$0.86 each (approximately £0.55 each). 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 6,174,318 options outstanding, 567,813 common warrants outstanding and 75,377,430 common shares.

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About HaloSource

HaloSource is a global clean water technology company headquartered in Seattle, Washington U.S.A. and is focused on the provision of cleaner, clearer and safer water using its proprietary technologies across four platforms:

·; HaloKlear™ products employ natural bio-polymers to provide water clarification on an industrial scale with dramatic reductions in ecological impact

·; HaloPure® became the first drinking water technology in 30 years to be registered by the United States Environmental Protection Agency ("USEPA"). In 2010, HaloPure® was approved by China's Ministry of Health ("MOH") and widely recognized as the world's most stringent performance requirements for water purification, a key differentiator for our multi-national partners

·; SeaKlear® Pool and Spa treatment products bring both natural bio-polymers and antimicrobial applications for treating recreational water

·; HaloShield® products consist of antimicrobial coatings solutions that employ unique technology that binds chlorine-based bleach to textiles such as sheets, lab coats and towels for use as a non-toxic biocide. www.halosource.com

HaloKlear, HaloPure, SeaKlear and HaloShield are either trademarks or registered trademarks of HaloSource, Inc. All other trademarks, brand names or product names belong to their respective holders.