Lonestar West Inc .Corporate Presentation November 2014

Investor Presentation

TSX Venture Exchange: LSI.V

November 2014

This presentation contains certain statements that may be deemed "forward-looking statements". All

statements in this document, other than statements of historical fact, that address events or

developments that Lonestar West Inc. (“the Company”) expects to occur, are forward looking

statements. Forward looking statements are statements that are not historical facts and are generally,

but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends",

"estimates", "projects", "potential" and similar expressions, or that events or conditions "will",

"would", "may", "could" or "should" occur.

Although the Company believes the expectations expressed in such forward-looking statements are

based on reasonable assumptions, such statements are not guarantees of future performance and

actual results may differ materially from those in the forward- looking statements. Factors that could

cause the actual results to differ materially from those in forward looking statements include, failure

to successfully negotiate or subsequently close such transactions, inability to obtain required

shareholder or regulatory approvals, uncertainty with respect to findings under exploration programs

and general economic, market or business conditions. Investors are cautioned that any such

statements are not guarantees of future performance and actual results or developments may differ

materially from those projected in the forward-looking statements. Forward looking statements are

based on the beliefs, estimates and opinions of the Company's management on the date the

statements are made. The Company undertakes no obligation to update these forward-looking

statements in the event that management's beliefs, estimates or opinions, or other factors, should

change.

Forward-Looking Statements

Lonestar Service AreaHEAD OFFICE:

Sylvan Lake, Alberta

BASES:

Fort McMurray, Alberta

Bonnyville, Alberta

Edmonton, Alberta

Whitecourt, Alberta

Carlyle, Saskatchewan

Moose Jaw, Saskatchewan

Melita, Manitoba

Toronto, Ontario

U.S.A.:

Sacramento, California

Elk City, Oklahoma

Tulsa, Oklahoma

Nashville, Tennessee

Beaumont, Texas

Dallas, Texas

Odessa, Texas

San Antonio, Texas

Witchita, Kansas

CANADA

UNITED STATES

Sacramento

San Antonio

DallasOdessa

Beaumont

Elk City

Witchita

Nashville

California

Texas

Kansas

TennesseeOklahoma

Fort McMurray

Bonnyville

Edmonton

Sylvan Lake

Whitecourt

Carlyle

Moose JawMelita

Alberta

Saskatchewan

Manitoba

Ontario

Toronto

Tulsa

What Is Hydro-Excavation?

The process of excavating rock and soil

to expose underground utilities and

pipelines.

Uses pressurized water to agitate the

earth, and a powerful vacuum to

remove the soil and debris.

Non-destructive method of excavating

which replaces a conventional backhoe

and manual digging.

Benefits Of HVAC Excavation?

Safer and faster than traditional

excavation methods when operating

around sensitive infrastructure.

Can excavate frozen ground because

of onboard water heaters.

Reduces environmental liability and

potential restoration costs.

HVAC Truck

A new HVAC truck

costs $475,000.

Lonestar currently

operates 83 HVAC trucks;

with 34 in the U.S.

6

HVAC Applications

Oil & Gas Industry

• Tank cleaning

• Pipeline trenching

• Facility maintenance

Utility Sector

• Piling & pole hole excavation

Communication Companies

• Uncovering buried utilities

Environmental Cleanup

• Debris removal & cleanouts

Construction Industry

• Shoring & slot trenching

HVAC Competitors

• 80 HVAC trucks (estimated)

• 80 HVAC trucks (estimated)

• Over 60 smaller HVAC trucks

• North America’s largest

provider of non-destructive

daylighting services

• 391 HVAC trucks

in Canada

• 517 HVAC trucks

in the U.S.

Vacuum “VAC” Truck

A new VAC truck costs

~$400,000.

Lonestar currently

operates 26 VAC trucks;

with 12 in the U.S.

Broad based

competition.

VAC Applications

• Fuel tank cleaning

• Spill cleanup

• Car wash

• Flood damage

• Septic tanks

• Sewers

Well Sites

• Remove drilling fluids

• Disposing of fluids in either spread

fields or authorized disposal facilities

Industrial

• Fuel tank cleaning

• Spill cleanup

• Car wash

Pipeline

• Non-destructive testing

Other

• Flood damage

• Septic Tanks

• Sewers

Safety Record

• Strong Health, Safety & Environmental

Program (HSE).

• AASP approved Certificate of

Recognition (COR).

• Prequalified by ISNetworld,

Complyworks, Canqual & PIC’s Auditing

as a low-risk supplier.

• Continuously evolving HSE program to

stay ahead of changes in the industry.

• GPS monitoring enhances safety.

• Low lost-time incident frequency.

Lonestar Advantage

• Increased efficiency, saving time and money

Superior Trucks

• Qualified for major corporate accounts

Superior Safety Record

• Trained to be safe and efficient

Top Crews

• Over 100 years combined management experience

Experienced Managers

• Founding management

Operating 13+ Years

Capital Structure

Issued:

• Insiders: 8.3 m

• CEO (insider) 7.3 m

• Public float 20.9 m

Total Issued: 29.2 m

• Unexercised options: 574,909

Fully Diluted: 29.7 m

Financings:

• June/14 $20.0m @ $3.30

• July/13 $10.1m @ $2.60

• Nov/12 $3.04m @ $1.40

• Aug/11 $1.2m @ $0.60

• Dec/08 $1.2m IPO @ $0.50

U.S. Expansion

• U.S. growth – Continually adding to U.S. fleet.

• California (4)

• Oklahoma (10)

• Texas (23)

• Kansas (6)

• Tennessee (3)

• California (infrastructure)

• OK, TX & KS (oil & gas)

• Key management hires

• Growing revenue per truck

• California has fewer Hydrovac trucks than are

located in Edmonton!

What We Have Accomplished

Fleet Growth

• 130 – Oct. 2014

• 65 – Oct. 2013

Platform Growth

• 16 Bases – Oct. 2014

• 9 Bases - Oct. 2013

• U.S. operations gaining traction.

• Bought Deal Financing at a premium to recent trading for $20 m.

• Recent close of Vamp acquisition.

Clear Growth Trend

-500

500

1,500

2,500

3,500

4,500

5,500

6,500

7,500

8,500

9,500

10,500

11,500

Q1F11 Q2F11 Q3F11 Q4F11 Q1F12 Q2F12 Q3F12 Q4F12 Q1F13 Q2F13 Q3F13 Q4F13 Q2F14 Q2 14

Revenue 1,602 2,883 4,005 2,671 3,812 4,535 5,828 4,442 6,156 6,750 8,777 6,212 9,281 9,555

Net Earnings (loss) -12 221 561 -343 318 521 666 -198 664 624 762 -448 -280 -132

EBITDAC 233 473 840 191 575 792 1,268 381 1,267 1,145 1,556 209 420 808

Lonestar West: TSX-V LSI(Full fiscal year changed to Dec 31 from Jun 30 as of 2014)$ Thousand

In One YearTrucks

14,989

21,074

314 7031,765

2,933

0

25

50

75

100

125

-500

4,500

9,500

14,500

19,500

First Half 2013 First Half 2014

RevenueNet Earnings (loss)EBITDACTrucks

53

122$ Thousand

In One Year$ Thousand

6,212

9,555

-448 -132

209808

0

25

50

75

100

125

-500

1,000

2,500

4,000

5,500

7,000

8,500

10,000

Q4F13 Q2 14

RevenueNet Earnings (loss)EBITDACTrucks

53

122

Trucks

Leadership TeamOfficers

James Horvath – President & Chief Executive Officer

David Prussky - Chairman

Kristin York – Vice President

Kristina Scade – Chief Financial Officer

Directors

James Horvath – President & Chief Executive Officer

Tracy Graf – CEO, Carfinco Financial Group Inc.

Joe MacLean – President and CEO, AOI Capital, LLC

Maurice Kagan – CEO, Danika Associates Limited

David Prussky – Director, Patica Securities Limited

Senior Managers13 senior HVAC and Vacuum managers

(includes U.S. Business Development, U.S. Operations Manager and all Base Managers)

Key Investment Highlights

Large and growing client base

Diversified

U.S. Expansion

Quickly becoming a noted competitor

in the Canadian HVAC industry

Energy, infrastructure &

mining

Oklahoma

Texas (energy)

California (utilities & infrastructure)

Key Investment Highlights

Strong projected growth.

Superior safety record.

Highly experienced management

with field experience.

28% inside ownership.

Analyst Coverage

Target

Price

BUY

$4.25

BUY

$5.00

Strong BUY

$4.75

Outperform

$4.75

Forecast

Revenue

2015

$72.2

Million

$91.2

Million

$65.6

Million

$85.2

Million

Forecast

EBITDA

2014 / 8.7 m

2015 / 14.3 m

2014 / 7.5 m

2015 / 16.2 m

2014 / 7.1 m

2015 / 10.0 m

2014 / 10.1 m

2015 / 16.2 m

Thank-You

Lonestar West Inc.TSX Venture Exchange: LSI

October 2014

For further information, please contact:

Lonestar West Inc.

lonestarwest.com

403-887-2074

Investor Relations

The Howard Group

Jeff Walker/Ariel Cobangbang

403-221-0915

Lonestar West Inc .Corporate Presentation November 2014

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