New e-commerce customer agreement

21 June 2017

HaloSource, Inc.

("HaloSource" or the "Company")

HaloSource announces Chinese e-commerce partnership

HaloSource Inc. (HAL.LN, HALO.LN), the global clean water technology company traded on London's AIM, announces today that it has reached an agreement with Shanghai JiuBan Industrial Co. Ltd, ("JiuBan") to distribute a new line-up of filtering water pitchers and bottles, marketed under HaloSource's new astreaTM brand (www.astreawater.com), via the e-commerce channel in China. The five-year exclusive deal for the e-commerce channel in China calls for JiuBan to purchase 360,000 pitchers and over 1 million replacement cartridges representing over $10 million of revenue to HaloSource in the first three years (years 4 and 5 exclusivity minimums to be negotiated). The astreaTM line-up of bottles and pitchers will offer both disinfection and heavy metal removal benefits, one-of-a kind features in the Chinese market for portable and on-the-go drinking water devices.

JiuBan was founded in 2012 and is an agent for top global brands in China. Their line-up of distributed products includes household appliances and consumer electronics, including air purifiers, mobile phones, TVs, air conditioners, refrigerators, washing machines, digital cameras, and laptops, with distribution on e-commerce platforms such as JingDong, TaoBao, Amazon and Yihaodian, as well as traditional retailers like Gome and Yongle.

The new astreaTM branded products will utilize HaloSource's patented HaloPure® disinfection and heavy-metal removal technologies to ensure that water is safe to drink and tastes great. The first astreaTM pitchers, powered by HaloPure disinfection technology, will significantly and quickly kill waterborne viruses by up to 99.99% and bacteria by up to 99.9999%, making the water safe to drink while preventing bacterial recontamination and keeping the water fresher for longer. HaloSource's HaloPure® disinfection technology has been registered with the US EPA and Chinese regulatory authority for drinking water purification.

The Company's HaloPure heavy-metal Adsorbent Composite (patent pending) is designed for application in gravity-fed devices (such as pitchers and bottles) to meet the NSF/ANSI 53 standards for lead reduction, below the current acceptable threshold of 10 parts per billion (ppb). The use of this breakthrough media represents a major step forward in the application of a cartridge-based form for reducing lead and other heavy metals from household drinking water when deployed in a gravity-fed application.

James Thompson, Chief Executive Officer of HaloSource, commented,

The Chinese market for point-of-use drinking water products is estimated to be more than $2.5 billion, growing at 15% -17%. (Sources: 2014 Verify Markets Global Residential Water Treatment Market Report; 2014 Freedonia China Consumer Water Treatment Report). Rarely does a company get the opportunity to launch products into a market this dynamic. Equally, the e-commerce channel in China is large and growing rapidly ($760 billion, growing at 25.6% according to a 2016 National Bureau of Statistics Report from China), and we think this new partnership gives us an excellent venue for telling the story of our products and technologies in the e-commerce channel. JiuBan is a trusted partner to world-class global brands online in China and we look forward to working together to capitalize on this significant opportunity.

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About HaloSource

HaloSource, Inc. innovates and integrates technologies to deliver clean drinking water solutions to partners with trusted brands around the world. The Company works with scientists and industry experts across the globe in search of new ways to improve drinking water quality and has been awarded more than 30 patents for its ground breaking chemistries, which provide safe drinking water for more than an estimated 10 million consumers globally. The Company's class-leading HaloPure® Drinking Water technology has the highest global certifications, including registration with the US EPA.

Founded in Seattle, Washington, HaloSource has grown to become an influential leader in drinking water purification. HaloSource is headquartered in the US with operations in China and in India. Learn more about the Company's research and development and future cutting edge technologies by visiting www.halosource.com.

HaloPure® is a registered trademark of HaloSource, Inc. astreaTM is a new brand in progress of registration for consumer products. All other trademarks, brand names or product names belong to their respective holders.

This document contains certain forward-looking statements relating to the Company. The Company considers any statements that are not historical facts as "forward-looking statements". They relate to events and trends that are subject to risk and uncertainty that may cause actual results and the financial performance of the Company to differ materially from those contained in any forward-looking statement. These statements are made by management in good faith based on information available to them and such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.