Replacement - Director Dealings

8 December 2010

Halosource, Inc

(the "Company")

Director Dealings

The following amendment has been made to the 'Director Dealings' announcement released on 3 December 2010 at 07:00 under RNS No 3093X.

Deletion of:

"In addition the Company has issued 90,190 shares (ISIN: US40638H1086, TDIM: HALO) in relation to the exercise of options by other employees and unrelated warrantholders."

Insertion of:

"In addition the Company has issued 42,503 shares (ISIN: US40638H1086, TDIM: HALO) in relation to the exercise of warrants by unrelated warrantholders."

All other details remain unchanged.

The full amended text is shown below.

The Company announces that on November 30, 2010 it issued a total of 265,000 common shares in the Company (ISIN: US40638H1086, TDIM: HALO) to James Thompson, a Director of the Company, for a total consideration of $60,850 pursuant to the exercise of the following options:

100,000 options at US$0.14 per share

40,000 options at US$0.14 per share

125,000 options at US$0.33 per share

Following the exercise, James Thompson has 265,000 common shares in the Company (representing .36% of the total issued share capital) and retains 450,000 options. In addition, the Company has issued 47,687 shares (ISIN: US40638H1086, TDIM: HALO) in relation to the exercise of options by other employees.

All the shares granted are "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.

Additionally, as described in its Admission Document, the Company pays some of its Directors and Non-Executive Directors their salaries in a mix of cash and Restricted Stock Grants (RSGs) in order to align Director and shareholder interests. In accordance with their service agreements and appointment letters, the Company has therefore issued RSGs 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 are issued as part of the Company's 2010 Share Option Scheme. These RSGs vest between October 18, 2010 and April 18, 2011. 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.

In addition the Company has issued 42,503 shares (ISIN: US40638H1086, TDIM: HALO) in relation to the exercise of warrants by unrelated warrantholders.

Application has been made by the Company for the shares to be admitted to trading on AIM and it is expected that dealings in these new common shares, which rank pari passu in all respects with the existing common shares (ISIN: US40638H1086, TDIM: HALO), will commence on 10 December 2010.

Following these issuances the Company has 6,658,302 options outstanding, 23,849,508 common shares (ISIN: US40638H1086, TDIM: HALO) and 50,303,009 Reg S restricted common shares (ISIN: USU4063G1077, TDIM: HAL).

For further information contact:

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.