GASFRAC Announces Court Approval of Agreement for Purchase of Operating Assets and Services, Proposed CCAA Plan of Compromise and Arrangement and CCAA Update

CALGARY, ALBERTA--(Marketwired - March 27, 2015) - GASFRAC Energy Services Inc. (TSX:GFS)("GASFRAC" or the "Corporation") announces that GASFRAC has obtained the approval of the Court of Queen's Bench of Alberta (the "Court") in respect of a definitive asset purchase agreement (the "Purchase Agreement") entered into between GASFRAC and a third party oil and gas service industry partner, whereby GASFRAC would purchase certain fracking assets and related services (the "Purchase Transaction"). The Purchase Transaction will assist GASFRAC in maintaining continued operations following completion of the previously announced sale transaction involving STEP Energy Services Ltd. announced in March 3, 2015 (the "Asset Sale Transaction"), under the supervision of its board of directors and Ernst & Young Inc., the court appointed monitor ("Monitor").

The Corporation has also entered into an indicative term sheet with the same third party which contemplates, subject to inter alia, creditor and court approval and customary closing conditions, a proposed CCAA plan of compromise and arrangement, pursuant to which such third party would acquire 100% equity ownership of GASFRAC, as an operating entity (the "Plan").

The Purchase Transaction and proposed Plan will not affect the completion of the Asset Sale Transaction contemplated to be completed in early April, 2015.

Additional terms of the Purchase Transaction and Plan will be disclosed as the Purchase Transaction and Plan progresses and the Purchase Transaction and Plan is completed. The Purchase Transaction is expected to be completed prior to the end of March, 2015 and the Plan is anticipated to be completed in June, 2015.

If the Plan is completed, and all applicable creditor and court approvals are obtained, it is anticipated that the Corporation's unsecured debentureholders may receive additional consideration under the Plan (in addition to any amount distributed to creditors as a result of the Asset Sale Transaction). However, it is anticipated that the holders of common shares of the Corporation will not receive any distribution as a result of the completion of the Asset Sale Transaction or under the Plan.