DIRECTOR'S DEALING

FOR IMMEDIATE RELEASE

23 October 2013

HaloSource, Inc.

("HaloSource" or "the Company")

DIRECTOR'S DEALING

Seattle, U.S.A. - HaloSource, Inc. (HALO.LN), the clean water and antimicrobial technology company traded on London's AIM, was notified on 22 October that James Thompson, Director and Chief Financial Officer of the Company, purchased 40,000 common shares in the Company at a price of £0.15 per share. Following this purchase, James Thompson is now interested in a total of 438,395 common shares, representing approximately 0.28% of the issued shares in the capital of the Company.

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About HaloSource

HaloSource is a global company headquartered in Seattle, Washington U.S.A. that develops technologies to disinfect and purify the water we drink, play in and return to the environment.

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

· SeaKlear® Pool and Hot Tub treatment products bring both natural biopolymers and antimicrobial applications for treating recreational water.

· HaloKlear® products employ natural biopolymers to provide water clarification on an industrial scale with dramatic reductions in ecological impact. In 2013, the Florida Department of Transportation (FDOT) added HaloKlear DPS (Dual Polymer System) as a reimbursable pay item to a list of construction water treatment Best Management Practices. It is the only all-natural, fully biodegradable polymer to be approved for this designation for use in all applicable FDOT projects. The product was also designated by the Washington State Department of Ecology in 2013 for General Use in construction and industrial applications.

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.