LONESTAR REPORTS 2011 YEAR-END AND FOURTH QUARTER FINANCIAL RESULTS SYLVAN LAKE, AB, Oct. 25, 2011 /CNW/ - Lonestar West Inc. today announced its business performance for the fiscal year end June 30, 2011 and the fourth quarter of fiscal 2011. The Company has generated revenues of $11.1 million for the twelve months ended June 30, 2011, an increase of 76% over the prior year equivalent period. The EBITDAC for the twelve months ended June 30, 2011 of $1,741,145 has increased 256% in comparison to the $488,493 during the prior year equivalent period. The Company generated a net income of $630,000 in comparison to a net loss of ($613,000) in the prior year equivalent period. The Company has generated revenues of $2.7 million in the three months ended June 30, 2011, an increase of 243% over the prior year equivalent period. The EBITDAC for the three months ended June 30, 2011 increased to $191,000 from a loss of ($139,000) in the prior year equivalent period. The net loss of ($127,000) compares to a net loss of ($426,000) in the prior year equivalent period. President and CEO James Horvath commented, "We have had a tremendous past year, seeing increases in both revenue and EBITDAC. The utilization rates of our VAC and HVAC fleets have increased substantially over the past year. In addition, our lease-operator revenue grew from $448,000 to $4.3 million, an increase of 860%, over the past year. During fiscal 2011, we placed a strong emphasis on building our management team, and I believe that our strong results reflect the enhancement of our team. At Lonestar we believe that our commitment to customer service, our superior safety record and our dedicated employees will enable us to continue to grow into a major national HVAC competitor." Financial Results (000's except per share data) 3 monthperiodsended 12 monthperiodsended June June 30 June June 30 30 2010 30 2010 2011 2011 Revenue $ 2,671 $ 778 $ 11,146 $ 6,334 Net earnings (127) (426) 630 (613) (loss) Per share, (0.01) (0.030) 0.05 (0.050) basic EBITDAC 191 (139) 1,741 488 (i) (i) EBITDAC means earnings before interest, taxes, depreciation, amortization and stock based compensation and is equal to earnings before income taxes plus interest on long-term debt plus amortization plus stock based compensation. EBITDAC is not a recognized measure under Canadian generally accepted accounting principles ("GAAP"). Management believes that in addition to net earnings, EBITDAC is a useful supplemental measure as it provides an indication of the results generated by the Company's primary business activities prior to consideration of how those activities are financed, amortized or how the results are taxed in various. Readers should be cautioned, however, that EBITDAC should not be construed as an alternative to net earnings determined in accordance with GAAP or as an indicator of Lonestar's performance. Lonestar's method of calculating EBITDAC may differ from other organizations and may not be comparable to measures used by other organizations. For complete details on the audited consolidated year-end financial statements and MD&A for the June 30, 2011 year-end, please refer to SEDAR at www.sedar.com. Business Description Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and Vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor. Lonestar's shares trade on the TSX (Venture) Exchange under the symbol LSI. Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar's complete MD&A. Lonestar West Inc. CONTACT: James Horvath, President and CEO (403) 887-2074Bev Roome, CA, Chief Financial Officer (403) 887-2074

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