STW Resources Holding Corp Receives Approval for Water Permits in West Texas

MIDLAND, TX--(Marketwired - Dec 16, 2015) -  STW Resources Holding Corp. (OTCQB: STWS), a provider of high-quality pipeline services, water reclamation and processing management services including water desalination, announced today that it has received approval from the Middle Pecos Water District for drilling, production and transportation of the water on STW Water's MRK lease in Pecos County.

Previously, STW Water applied for a consolidated drilling and production permit from the San Andrés formation to be utilized within the county and to be exported out of Pecos County to surrounding areas in need of water. The water district approved the permit in a unanimous decision, with STW meeting the following conditions:

• 5000 acre-feet or 4,464,000 gallons per day for industrial use (oil and gas) with the ability to export the water out of the county

• The drilling of one monitor well on the Company's leased property

• Approval for three new wells to be drilled and spread out on the two properties near Imperial, TX on land STW has under lease

• The ability to rehab the existing two wells (MRK East & MRK West) if STW is unable to rehab the wells, whereupon the Company will plug the wells with the ability to request two replacement wells from the General Manager of the water district

• The submission of a revised and updated Hydrogeological study to the water district from the information obtained by drilling and testing these wells

The company also has the ability to submit a request to the water district for a larger permit once it is determined by the hydrogeologist that the formation can withstand an increase in yield without any negative effects. Additionally, with several prospective buyers already in place, STW expects to begin water sales in the first quarter of 2016, selling water immediately at a profitable margin. The Company anticipates water sales in the first quarter of 2016, as it has already received a letter of intent from a local customer to purchase water.

"This is a milestone achievement for STW, one that we have been working towards for quite some time and are thrilled has come to fruition," said Alan Murphy, CEO of STW Resources Holding Corp. "We consider this to be a pivotal moment in establishing STW's West Texas Water Project as one that will provide processed and/or raw alternative water from multiple sources direct to the end-user. With the production and transportation permits approved, the Company can now market the water more effectively, and begin to execute sales agreements with local buyers."

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About STW Resources Holding Corp.

STW Resources Holdings Corp, (OTCQB: STWS) is a quality provider of water reclamation and processing management services. STW Water is a Total Water Solutions Provider Company and provides turnkey design build solutions and provides its Customers with "out-of-the-box" design solutions to meet customer's water needs. STW Water has capabilities to provide complete oversight of various water and wastewater projects with primary focus on engineering, regulatory permitting including Public Water Systems (PWS), Discharge permits, Pilot exception and Pilot Study, equipment design & treatment process design, manufacturing & installation and full scale Commissioning and training for all types of oil & gas, industrial and municipal water and wastewater markets throughout the State of Texas. STW's model of water ownership has had recent successes and broken ground on both Upton County and Ft. Stockton, Texas projects.

The Company consults and provides customized water analysis, reclamation and remediation services to a variety of complex oil and gas produced and flowback water, brackish water, ocean water desalination, industrial, and municipal applications throughout several geographic locations to fill a tremendous need for fresh water in the areas they service. As an independent solutions provider, STW utilizes proven technologies, from various well-known manufacturers. These technologies are available as fixed or mobile units with varying capabilities. STW's process ensures that the most effective and efficient technologies are implemented. Current potential project locations include the Eagle Ford Shale (TX), the west Texas Delaware and Permian Basins (TX), eastern New Mexico, and ocean desalination projects on the Gulf Coast of Texas, California, and Hawaii.

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