Hanwei Announces Filing of Preliminary Prospectus for Rights Offering

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Dec. 19, 2014) -

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Hanwei Energy Services Corp. (TSX:HE) ("Hanwei" or the "Company") today announced that it has filed a preliminary short form prospectus with the securities commissions in each of the provinces of Canada related to the previously announced rights offering (the "Rights Offering") disclosed in the Company's news release dated November 13, 2014.

Each holder of record of Hanwei common shares ("Common Shares"), as of a record date to be announced, will receive rights (the "Rights") which will entitle them to participate on an equal and proportional basis in purchasing additional Common Shares. Subject to applicable law, a rights certificate and a prospectus will be mailed to each shareholder after a record date has been set for issuance of the Rights in conjunction with the filing of the final prospectus. The Rights Offering will be open for exercise for at least 21 days from the date of mailing of the final prospectus to shareholders of the Company.

In support of the Rights Offering, certain shareholders of the Company, including Mr. Fulai Lang, the Chairman of the Company's Board of Directors (collectively, the "Standby Purchasers", and each a "Standby Purchaser") have entered into a non-binding letter of intent with the Company (the "Letter of intent") in which each Standby Purchaser has indicated that he or she expects to enter into a binding standby commitment with the Company (the "Standby Purchase Agreement") before the filing of the final prospectus relating to the Rights Offering. Under the expected terms of the Standby Purchase Agreement, the Standby Purchasers have agreed to guarantee the purchase, in the aggregate, of a minimum of $3,000,000 of the Common Shares that are not otherwise subscribed for by the other holders of Rights.

An application has been submitted to the Toronto Stock Exchange (the "TSX") to approve the listing of the Rights and the Common Shares issuable upon the exercise of the Rights. Shareholders who do not wish to exercise their Rights to buy new Common Shares under the Rights Offering will have the option of selling the Rights that they receive from the Company through the TSX. Shareholders who do not exercise all of their Rights consequently will have their present ownership interests in Hanwei, as a percentage of the total outstanding Common Shares, reduced as a result of the Rights Offering.