STW Resources Signs Additional “Alternative Brackish Water” Lease in West Texas

Company Provides Update on West Texas Water Project and Immediate Revenues

MIDLAND, Texas--()--STW Resources Holding Corp (“STW” or “the Company”), (OTCQB: STWS), 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, purchased another brackish water lease in the Ft. Stockton, Texas area. This newly acquired water source is the second lease comprising several tracts of land as a key component in STW’s previously announced West Texas Water Project. STW will be continuously adding additional water leases to the portfolio. The main purpose of the West Texas Water Project is to access “alternative” (other than fresh water) brackish water sources, process these water sources up to potable drinking water standards, and to supply the fresh water to water-starved communities and industrial customers in west Texas.

The newly purchased lease has artesian (free flowing) brackish water flowing from the San Andres formation, which is approximately 2,500-3,500 feet below the surface. Several of the eight (8) water wells currently flowing have been producing approximately 1 to 2.5 million gallons per day (GPD) for the last 40+ years, according to the Pecos County Water authorities. The water produced is brackish and will be processed 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 to the surrounding communities and industrial users and, in addition, supply a number of the water-starved cities north of Ft. Stockton without disturbing the fresh water supplies that Ft. Stockton relies on daily. STW will initially sell three (3) to five (5) million GPD within 50 miles of Ft. Stockton and Imperial, Texas. STW expects the sales of water to increase to the allowable limit, which could potentially exceed 30 million GPD from this particular water lease and surrounding water sources upon the completion of the proposed STW and Investor owned 60-93 mile pipeline to the cities north of Ft. Stockton. This pipeline has been proposed in STW’s West Texas Water Project.

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

Fort Stockton Lease Update

STW’s pursuit of the Capitan Reef Aquifer water on the Ft. Stockton lease is advancing as rapidly as politics and regulations will allow. Currently, there is a temporary moratorium on the production and sale of Capitan Reef water until the Texas Water Development Board (TWDB) completes a hydrogeological (report of possible water reserves in an aquifer based on a scientific evaluation) report detailing how much water can be produced from the aquifer. The estimated time frame for the moratorium being lifted is by December of 2015 or January 2016. In the meantime, the lease is intact. The Company’s immediate plan is to finish drilling the currently started well #2 and to obtain a production permit and begin sales of water from this lease within current production amounts previously established by the Middle Pecos County Groundwater Conservation District. STW expects water production up to 1,500 GPM or approximately 2 million GPD at a development cost of approximately $3 million per well and a brackish water processing plant at a cost of approximately $1 million.

Stanley Weiner, CEO of STW Resources, said, “Our project investors are fully supportive and agree with our strategy regarding the new lease and are anxious to begin funding to drill several wells. The number of wells to be drilled will depend on the amount of water that can be produced from each well. The projected production appears to be approximately 1-2.5 million GPD from each well based upon the existing wells on the lease.”

Weiner continued, “We currently have eight solid projects in our project pipeline, as discussed previously in the June Company conference call, with several more projects being qualified. Our business plan for the West Texas Water Project has remained consistent from the beginning and that is to drill wells into the Capitan Reef on the Ft. Stockton lease and produce the Reef water and drill wells on additional leases in the area for other communities in west Texas, as well as other benefiting industrial end users. This project has the potential to save the West Texas communities from potential drought problems for years to come.”

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About STW Resources Holding Corp.

STW Resources Holding 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 customers’ 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’s Pipeline division uses the latest technology to install new pipelines, and repair, maintain and restore oil & gas pipelines (STW Pipeline).

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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
Paul DiFrancesco, 432-687-1811
pauld@stwresources.com
or
Investor Relations
cleanwater@stwresources.com

Contacts

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