Trading Update

20 November 2015

HaloSource, Inc.

("HaloSource" or the "Company")

Trading Update

HaloSource Inc. (HAL.LN, HALO.LN), the global clean water technology solutions trading on London's AIM, today provides an update on trading ahead of the year ending 31 December 2015.

As a result of some delays in key customer rollouts together with some operational challenges as we increased manufacturing capacity at our Drinking Water facility in China which has temporarily affected our ability to fulfil customer orders, we anticipate that Drinking Water revenues will be impacted negatively during the second half of 2015. However, the Company is confident that these production delays will in no way impact the marketplace demand for its class-leading HaloPure® disinfection technology for 2016 and beyond. Revenues versus 2014 for the Company's Recreational Water and Environmental Water segments are stable but total consolidated revenues for the year ending 31 December 2015 will be materially lower than market expectations and, consequently, the net loss for the full year will be higher than market expectations.

The Company remains confident in the business strategy and growth opportunities as the water technology integrator and solutions provider for global multinational corporations. In particular, the benefits of various operational developments are starting to take effect. These include new product launches by partners such as Panasonic Corporation in India; the emergence in 2015 of another national partner in China using HaloPure® bacteriostatic cartridges in combination with their reverse osmosis systems; improvement in operational performance being realised by the movement to an indirect sales model in its Recreational Water business during 2015; and optimisation of our Environmental Water production and sales coverage implemented in H2 2015.

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About HaloSource

HaloSource, Inc. creates innovative solutions for water purification that serve people, preserve the planet and protect our most valuable resource. The Company works with scientists and industry experts across the globe in search of new ways to improve water quality and has been awarded more than 70 patents for its ground breaking chemistries, which provide effective and environmentally responsible solutions to the growing issue of water stress.

Founded in Seattle, Washington, HaloSource has grown to become an influential leader in three market segments: drinking water, recreational water, and environmental water treatment and remediation. 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.

HaloKlear, HaloPure, and SeaKlear are either trademarks or registered trademarks of HaloSource, Inc. 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.