STW Resources Closes Initial $5 Million to Capitalize STW Water’s Reclamation Services

Growth Capital Allows STW Water to Contract Additional Water Infrastructure Projects

MIDLAND, Texas--()--STW Resources Holding Corp, (OTCQB:STWS), an integrated provider of water management, including water processing, desalination, reclamation and remediation, and oilfield services, announced today that the company has signed an agreement with a family investment office in Houston to finance STW Water’s design, engineer and build model.

Currently, STW has two projects in the build-out phase, the $3.3 million Horizon City project and the $2.8 million water system for a large oil company’s facility as previously announced. The company has been hesitant to take on more projects in this model due to the capital requirements. Having access to $5 million to work in progress capital (WIP) allows the company to begin several additional projects immediately. Currently, STW has 9 additional projects that can begin in the next 6 to 9 months; this capital facility will allow the company to develop more customers and experience continued growth in this demanding marketplace.

The scope of the projects in this revenue center are primarily incorporated in the water treatment facilities of municipalities. The immediate geographic focus is Texas, Oklahoma, New Mexico, and California with plans to expand. The technology is proven, used widely and assembled by well-known manufacturers. The revenues from these projects range from $1.5 million to $4 million with margins generally between 27% and 30%.

STW’s Water Process & Technologies division has a 30-year exclusive agreement with the City of Ft. Stockton, Texas which awards STW Water the rights to drill and produce from documented water reserves of the Capitan Reef Aquifer. The reservoir has the potential to supply numerous municipalities at a rate of up to 100+ million gallons per day without depleting or affecting the integrity of the reservoir. The project involves 11 planned production wells, which have the potential to generate a minimum of approximately 2.5+ million gallons of water per day per well.

STW Resources has the exclusive rights for the United States, Canada, the Caribbean, Mexico and Central America to a proprietary technology, known as DyVaR Zero Liquid Discharge (ZLD) water processing, developed by Salttech Ltd. of the Netherlands. Conventional desalination technologies recover only about 35%-45% of fresh water from a gallon of seawater. However, STW's Salttech technology recovers approximately 97% of the fresh water at an economical cost with no potential environmental disposal problems associated with the concentrated salty reject and with no chemicals or filtration.

Investor Database for Future Press Releases and Industry Updates

Interested investors and shareholders are invited to be added to the corporate e-mail database for corporate press releases and periodic industry updates by sending an email to cleanwater@stwresources.com.

About STW Resources Holding Corp.

STW Resources Holding Corp. (STWS) is a leading provider of oilfield services and water management services operating through three subsidiaries. STW Energy uses the latest technology to prepare and construct sites for oil and gas exploration and remove oil and diesel residue from drilling rigs to meet environmental regulations. They offer a multitude of services to the O&G industry that allows for compliance with federal regulations regarding clean water and transportation. STW Pipeline uses the latest technology to install new pipelines and repair and maintain aging water, oil and gas lines. STW Water designs, permits and builds mobile waste treatment plants near oil and gas drilling sites and provides customized and cost-effective water reclamation solutions for oil & gas producers, municipalities, and environmental remediation projects. STW recently obtained the exclusive licensing rights for a proprietary water treatment technology from Salttech Ltd. of the Netherlands, which can process oilfield produced, frack flowback, ocean water and brackish water into ninety-five (95%) percent fresh drinking water.

www.stwresources.com

@STWRESOURCES

https://www.facebook.com/STWRESOURCES

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.

Contacts

STW Resources Holding Corp
Company Contact:
Paul DiFrancesco, 432-687-1811
or
Investor Relations, 432-687-1811
cleanwater@stwresources.com

Release Summary

STW Resources Closes Initial $5 Million to Capitalize STW Water’s Reclamation Services

Contacts

STW Resources Holding Corp
Company Contact:
Paul DiFrancesco, 432-687-1811
or
Investor Relations, 432-687-1811
cleanwater@stwresources.com