HaloSource Enters Petrochemical Market

FOR IMMEDIATE RELEASE 21 October, 2013

HaloSource Enters Petrochemical Market with Industrial Dewatering International

BOTHELL, WASHINGTON, U.S. - HaloSource, Inc. ("HaloSource" or "the Company") (HAL.LN, HALO.LN), the clean water technology company and Industrial Dewatering International, LLC ("IDI") today announce a new partnership to distribute the HaloKlear® line of environmental water technology products to oil and gas industry companies in Texas and New Mexico. With exclusivity minimums maintained, the contract represents a revenue opportunity of over US$1 million for HaloSource over the next three years.

IDI already has Master Service Agreements in place with key industry players, including XTO, Enterprise Products and Kinder Morgan, and expects to expand its business with the addition of HaloKlear®to its portfolio. The technology will enable customers to achieve significant cost savings by choosing green solutions rather than doing business conventionally. Using HaloKlear® will allow on-premise water to be recycled with no settling time rather than the much higher cost off-site treatment options.

Martin Coles, President and Chief Executive Officer of HaloSource commented, "It is exciting to enter the multi-billion dollar oil and gas industry with our clean water technology. This has been a major objective for us which we are delighted to have achieved. Our biopolymer-based technology matched with IDI's technical, application and mobility knowledge will deliver economically competitive solutions utilising greener chemistries. Understanding and positively impacting the effects of the water-energy nexus is directly in line with our core value of delivering solutions that protect our most valuable resource."

Ronnie Vinson, Chief Executive Officer of IDI added, "The opportunity to bring green chemistry to this industry with such an innovative company like HaloSource is significant. Our partnership truly represents a new era in the methodologies utilized today in the recovery of valuable oil and hydrocarbons from waste streams, while providing recycled water that meets regulatory compliance requirements for water quality standards in re-use applications. Together, we are changing the way the oil and gas industry handles contaminated water."

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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.

halosource.com

About Industrial Dewatering International (IDI)

Industrial Dewatering International, LLC is a global company headquartered in Houston, Texas, USA that deploys methods of oil and gas wastewater purification while extracting petrochemicals and/or oils. IDI resources those extracted waters for efficient usage in refinery operations or for ecological enhancement.

- IDI holds corporate exclusive master service agreements in Texas and New Mexico for water purification in both upstream and downstream applications.

- IDI has a reputation for increasing corporate revenues while promoting green technology.

- IDI creates time saving solutions for the petrochemical industry through its state and national permitting approvals.

- IDI's water purification system eliminates corporations' historical costly solutions, exhaustive

- more-

timetables and focus on irrelevant areas pertaining to their business.

- IDI is a community minded business that seeks to enhance territorial surroundings while benefiting human growth and development through its association with non-profit organizations.

- IDI has been recognized as a significant player in the petrochemical business for water purification processes.

- IDI holds an exclusive arrangement with water technology products used in conjunction with purification units to enhance business productivity in the marketplace.

www.recycledwaters.com

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HaloSource +1.425.974.1930

Martin Coles, Chief Executive Officer

James Thompson, Chief Financial Officer

Kate Bovey, Senior Director Public Affairs

Industrial Dewatering International, LLC +1.855.661.5050

Ronnie Vinson, Chief Executive Officer

James Spencer, Chief Financial Officer

Robert Fultz, President

Buchanan Communications +44 207 466 5000

Charles Ryland, Partner

Claire Akhurst, Account Executive

Liberum Capital (NOMAD) +44 203 100 2222

Richard Bootle