TSX.V: LSI Investor Presentation

June 2013

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.

HEAD OFFICE:

Sylvan Lake, Alberta

BASES:

Fort McMurray, Alberta

Bonnyville, Alberta

Edmonton, Alberta

Carlyle, Saskatchewan

Melita, Manitoba

U.S.A.:

Elk City, Oklahoma

Sacramento, California

Odessa, Texas

San Antonio, Texas

CANADA

UNITED STATES

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.

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.

A new HVAC truck

costs $475,000.

Lonestar currently

operates 64 HVAC

trucks; with 11

in the U.S.

Total fleet not

including water

trucks = 80

Tank cleaning

Pipeline trenching

Facility maintenance

Piling & pole

hole excavation

Uncovering

buried utilities Debris removal

& cleanouts

Shoring & slot

trenching

• North America’s largest

provider of non-destructive

daylighting services

• 80 HVAC trucks (estimated)

• 80 HVAC trucks (estimated)

• Over 60 smaller HVAC trucks

• 340 HVAC trucks

in Canada

• 408 HVAC trucks

in the U.S.

A new VAC truck

costs ~$400,000.

Lonestar

currently operates

16 VAC trucks;

with 9 in the U.S.

Broad based

competition.

• Remove drilling fluids

• Disposing of fluids in either

spread fields or authorized

disposal facilities

• Fuel tank cleaning

• Spill cleanup

• Car wash

• Flood damage

• Septic tanks

• Sewers

• Non-destructive testing

• 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.

Increased efficiency,

saving time and money.

Qualified for major

corporate accounts.

Trained to be safe

and efficient. Over 100 years combined

management experience.

Under founding

management.

Issued:

• Insiders: 9.4 m

• CEO (insider) 7.1m

• Public float 12.8 m

Total Issued: 22.2 m

• Unexercised options: 760,000

Fully Diluted: 22.96 m

Financings:

• Dec/08 $1.2m IPO @ $0.50

• Aug/11 $1.2m @ $0.60

• Nov/12 $3.04m @$1.40

• July/13 $10.1m @ $2.60

-500 0

500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 8,500 9,000

Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 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 8,301

Net Earnings (loss) -12 221 561 -343 318 521 666 -198 664 624 762 -456 92

EBITDAC 233 473 840 191 575 792 1,268 381 1,267 1,145 1,556 201 912

$ Thousand Lonestar West: TSX-V LSI (Fiscal Year End June 30th)

U.S. growth –

Continually adding to

U.S. fleet.

California (6)

Oklahoma (7)

Texas (6)

California

(infrastructure) OK &

TX (oil & gas).

U.S. expansion

negatively impacted

cash flow until late

Q1/F14 due to start-

up costs.

U.S. operations now

profitable, growing

and focused to

underpin revenue

and cash flow growth.

California has fewer

Hydrovac trucks than

are located in

Edmonton!

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

$50.00

F 09 F 10 F 11 F 12 F 13 Q1 14 F 14 (f)

$5.54 $6.33

$11.15

$18.62

$27.89

$8.30

$43

$4

( $ millions )

$-

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

F 09 F 10 F 11 F 12 F 13 Q1 14 F 14 (f)

$0.11 $0.47

$1.72

$3.02

$4.20

$0.91

$5.75

( $ millions )

$1.25

Officers

James Horvath – President & Chief Executive Officer

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 Managers

5 senior HVAC and Vacuum managers

Diversified: energy,

infrastructure & mining.

U.S. Expansion.

Oklahoma, Texas (energy)

California (utilities & infrastructure)

Large and growing

client base.

Quickly becoming a noted

competitor in the

Canadian HVAC industry.

Highly experienced

management with

field experience.

43% inside ownership.

Strong projected growth. Superior safety record.

Target Price BUY

$5.00

BUY

$4.25

Forecast

Revenue F2014 $47.5Million $43.6 Million

Forecast Net

Earnings/Share -

F2014

$0.08 ($0.01)

Lonestar West Inc. TSX Venture Exchange: LSI

March 2014

For further information, please contact:

lonestarwest.com

403-887-2074

Investor Relations

The Howard Group

Jeff Walker

403-221-0904