STW Resources Begins Initial Development of Company’s Newly Acquired Alternative Water Lease Near Imperial, Texas

Company Provides Update on Imperial, Texas (MRK) Lease and Its West Texas Water Project

MIDLAND, Texas– STWS, OTCQB, (BUSINESS WIRE)– STW Resources Holding Corp (OTCQB: STWS) (“STW” or “the Company”), an integrated provider of water management, including water reclamation and remediation, and oilfield services, announced today that STW Water Process & Technologies, a subsidiary of STW Resources, has begun the development of its newly purchased brackish water lease in the Imperial, Texas area. This recently acquired water source is a key component in STW’s West Texas Water Project. The main purpose of the West Texas Water Project is to access “alternative” (other than fresh water) brackish water sources, process these sources to potable drinking water standards, and supply the fresh water to municipalities and industrial customers in west Texas.

Phase I development for the MRK lease is expected to be completed by year-end. The objectives of this phase are to complete the site excavation, complete a hydrogeological report, acquire production/transportation permits and a long-term signed water purchase agreement. The company has already received an approval from the Texas Commission on Environmental Quality (TCEQ) for the site plans and the technology/processes that STW will be using to treat this water. This week, STW’s Hydrogeologists, LBG Guyton and Associates, will begin the required hydrogeological study of the San Andres Formation to estimate the approximate amount of water reserves. This study is required for the permitting process by the Middle Pecos Groundwater Conservation District. Upon completion of Phase I on the MRK lease, the company is estimating that water sales to industrial customers will begin during the first quarter of 2016.

Provided development and infrastructure financing are in place, Phase II is expected to commence in January. Management has been in discussions and negotiations for the timing and financing terms. Due to the market sector and water infrastructure aspect of this project, the number of investors and their interest is very high. Phase II is estimated to take twelve (12) months and the build-out another fourteen (14) months, starting commercial production operations for the entire West Texas Project in the second quarter of 2018.

The newly purchased MRK lease has artesian brackish water flowing from the San Andres formation, which is approximately 2,500 feet below the surface. According to the Pecos County Water authorities, several of the eight (8) water wells currently flowing have been producing approximately 1-2.5 million gallons per day (GPD) for the last 40+ years. The water produced is brackish and will require processing with STW’s proprietary Hybrid Brackish Reverse Osmosis System prior to sale to customers. The Company’s plan is to supply the alternative processed water from the MRK lease and other leases to the surrounding communities and industrial users. The estimated current water flows are more than 20 million gallons per day (GPD).

The Company’s strategy of developing alternative water sources involves adding other currently unusable brackish aquifers in Texas and California and throughout the Southwestern United States to the company’s water lease portfolio. These alternative water sources can be treated and the processed water used for municipal (human consumption) and industrial applications.

Stanley Weiner, CEO of STW Resources, said, “Our project investors are supportive and fully agree with our strategy regarding the lease and are anxious to begin funding to drill several wells. The number of wells being planned to drill will be dependent upon the amount of water that can be produced from each well. This threshold appears to be approximately 1-2.5 million GPD from each well based upon the existing flowing wells on the lease. Although the brackish water from these wells has been free flowing for many years and accumulating on the surface, this water can now be economically processed to potable specifications for municipal use with STW’s advanced technologies.”

Weiner emphasized, “We currently have nine solid water projects similar to this project in the state of California alone in our project pipeline with a number of additional projects being qualified. These newer projects are in addition to the previously announced projects that are currently in various stages of project development. Although we have experienced some delays in Ft. Stockton, our project’s plan has remained consistent from the beginning. Our goal is to drill wells into the Capitan Reef on the Ft. Stockton and surrounding leases to produce “alternative” water for communities in west Texas, as well as other beneficial industrial end users. This project has the potential to provide a reliable supply of potable water to the West Texas communities that have been negatively impacted by past droughts.”

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About STW Resources Holding Corp.

STW Resources Holdings Corp (STWS) is a quality provider of oilfield pipeline services and water reclamation and processing and management services. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with “out-of-the-box” design solutions to meet customer’s water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial, and municipal water and wastewater markets throughout the State of Texas and the United States. Recently, STW’s model of water ownership has had a great deal of success and broken ground on the Ft. Stockton, Texas project.

The Company consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, ocean water desalination, industrial, and municipal applications throughout several geographic locations to fill a tremendous need for fresh water in the areas they service. As an independent solutions provider, STW utilizes proven technologies from various well-known manufacturers, including a Zero Liquid Discharge (ZLD) technology that is economically feasible to use. These technologies are available as fixed or mobile units with varying capabilities. STW’s process ensures that the most effective and efficient technologies are implemented. The ZLD system can process any saline laden water with Total Dissolved Solids (TDS) levels ranging from 5,000 ppm to >300,000 ppm. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.

STW, with its manufacturing partner Sunstone Water Group, also has the technology to reclaim municipal wastewater to potable reuse standards. It is specifically referred to as: Municipal Reclaimed “NEW” Water. STW’s (Formerly “Toilet-to-Tap”) Reclaimed “NEW” Water systems for reclaimed wastewater with its advanced pre‐treatment process combined with Hybrid high brackish high recovery or Seawater Reverse Osmosis System is capable of purifying contaminated water with a variety of complex water quality thereby preventing fouling attacks on membranes & allowing reliable operation with significantly reduced operating expenses and decreased power consumption.

ENVIRONMENTAL IMPACT: If STW’s Proprietary ZLD Technology is placed in-line with a Seawater Reverse Osmosis System or used with a geothermal operation, there will be no potentially environmentally sensitive brine concentrate discharged into the local waterways since the system is Zero Liquid Discharge and 95-97%+ of the fresh water is recovered in the process. The waste stream is salt crystals and minerals. This is a completely Blue/Green operation that provides a sustainable supply of power and water for municipal and industrial use.

STW uses the latest technology to install new pipelines, and repair, maintain and restore oil & gas pipelines (STW Pipeline).

www.stwresources.com

Forward-Looking Statements

This news release contains forward-looking statements about our business, or financial condition and prospects that reflect our assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. There may be other risks and circumstances that we are unable to predict. When used in this news release, words such as “believes,” “expects,” “intends,” “plans,” “anticipates,” “estimates” and similar expressions are intended to identify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including risks discussed in the company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (www.sec.gov). All forward-looking statements attributable to the Company or to persons acting on its behalf are expressly qualified in their entirety by these factors other than as required under the securities laws. The Company does not assume a duty to update these forward-looking statements.

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STW Resources Holding Corp
Company Contact
Stanley Weiner, 432-687-1811

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