Arrowhead Sells 15-Litre Water Business

CALGARY, ALBERTA--(Marketwire - March 7, 2013) -

NOT FOR DISSEMINATIONS IN THE UNITED STATES OR TO US PERSONS.

Arrowhead Water Products Ltd. (TSX VENTURE:AWA) ("Arrowhead" or the "Company") is pleased to advise that it has completed its previously announced transaction to sell its 15-litre water bottling assets, Arrowhead trademark and retail customers to Ice River Springs Water Co. Inc. ("Ice River"). As a result of the sale which was effective as of March 1, 2013, the Company received aggregate consideration of $1,650,000 for the business, of which $683,300 was released at closing with the balance of $966,700 to be paid in additional installments of $433,300 on June 3, 2013 and $533,400 on January 7, 2014 by Ice River. The additional payments were secured by promissory notes and related security. The Company will continue to receive a small royalty on each 15-litre bottle sold by Ice River up to the date that the last installment is paid and up to a maximum amount of $55,000. In connection with the asset sale, the Company has agreed to assign the name "Arrowhead" to Ice River and as a result, the Company will be continuing its new business under a different name, subject to TSX Venture Exchange ("TSXV") approval.

The Board and Management of Arrowhead plans, subject to TSXV approval, to maintain Arrowhead as a public company and is in the process of identifying other business opportunities for the Company.

14,492,229 Common Shares Issued