GASFRAC Energy Services Inc. GSFVF

RE: RE: Seaview

[ybor]

During the quarter, the Company successfully completed 2 Wapiti Cardium horizontal wells (1.1 net) utilizing liquid propane gas ("LPG") fracturing technology; the initial application of this technology. The IP rates from these new wells are more than three times better than that of the previous oil fractures completed by the Company in 2010 (see table below). Advances in the initial production ("IP") rates in the Cardium zone in the Wapiti area continue to be encouraging;