Newalta to Raise $70 Million Equity Financing to Expand

Date: October 10, 2012

Source: Newalta Corporation

Industrial waste processor Newalta Corporation (Calgary, AB) plans to raise $70 million by selling 5 million shares at $14 apiece. The company expects to use the proceeds to fund its ambitious growth plan comprised of customer-driven capital projects, after reducing indebtedness. Some of the funds may also be used for general corporate purposes. "We have many excellent organic growth investment opportunities across all areas of our business, particularly in expanding our U.S. business and our heavy oil contract operations," said Al Cadotte, President and CEO of Newalta.

October 10, 2012

Newalta Announces $70 Million Bought Deal Equity Financing

Newalta Corporation ("Newalta") (TSX:NAL) today announced it has entered into an agreement with a syndicate of underwriters (the "Underwriters") led by RBC Capital Markets to sell 5,000,000 shares on a bought deal basis at a price of $14.00 per share to raise gross proceeds of $70 million. Newalta has also granted the Underwriters the option to purchase up to an additional 500,000 shares, exercisable in whole or in part until November 5, 2012 to cover over-allotments and for market stabilization purposes, if necessary. Newalta has expanded its organic growth plan and as such, the net proceeds of the offering will be used by Newalta to fund the expanded plan and contribute to the funding of customer-driven capital projects. Proceeds of the offering will initially be used to reduce indebtedness and for general corporate purposes until fully invested.

"We have many excellent organic growth investment opportunities across all areas of our business, particularly in expanding our U.S. business and our heavy oil contract operations," said Al Cadotte, President and CEO of Newalta.

"The proceeds of this financing will provide the capacity to proceed with an aggressive capital program as well as to react to investment opportunities as they arise in 2013, while maintaining a strong balance sheet. These high-return, low-risk investments will deliver strong incremental cash flow and, as a result, drive excellent returns for our investors," added Mr. Cadotte.

The offering will be made pursuant to a short form prospectus to be filed in each of the provinces of Alberta, British Columbia, Saskatchewan, Manitoba and Ontario. Closing is expected to occur on October 26, 2012, subject to regulatory approvals.

The securities offered have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act. This news release does not constitute an offer to sell or the solicitation of any offer to buy nor will there be any sale of securities in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under applicable securities laws.

Newalta is North America's leading provider of innovative, engineered environmental solutions that enable customers to reduce disposal, enhance recycling and recover valuable resources from industrial residues. We serve customers onsite directly at their operations and through a network of 85 locations in Canada and the U.S. Our proven processes, portfolio of more than 250 operating permits and excellent record of safety make us the first choice provider of sustainability enhancing services to oil, natural gas, petrochemical, refining, lead, manufacturing and mining markets. With a skilled team of more than 2,000 people, two decade track record of profitable expansion and commitment to commercializing new solutions, Newalta is positioned for sustained future growth and improvement. Newalta trades on the TSX as NAL. For more information, visit

This press release contains forward-looking statements. More particularly, this press release contains statements concerning the size and anticipated closing date of the offering, the anticipated use of the net proceeds of the offering and the growth and investment opportunities available to Newalta and the anticipated impacts thereof. Although Newalta believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them because Newalta can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties.

The closing of the offering could be delayed if Newalta is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The offering will not be completed at all if these approvals are not obtained or some other condition to the closing is not satisfied. Accordingly, there is a risk that the offering will not be completed within the anticipated time or at all.

The intended use of the net proceeds of the offering by Newalta might change if the Board of Directors of Newalta determines that it would be in the best interests of Newalta to deploy the proceeds for some other purpose.

The forward-looking statements contained in this press release are made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

For more information, please contact:
Newalta Corporation
Anne M. Plasterer
Executive Director, Investor Relations
(403) 806-7019

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