Horizon North Logistics Inc. Provides Contract Update

TSX Symbol: HNL

CALGARY, Jan. 10, 2013 /CNW/ - Horizon North Logistics Inc.  ("Horizon" or the "Company") announced today that it has concluded contract negotiations with a major customer at its camp facilities north of Fort McMurray, Alberta.  The customer has committed to continue to utilize the facilities through the first half of 2013 although at lower occupancy levels compared to 2012.  During the latter half of 2012, the customer utilized an average of 1,700 beds per day while their commitment for the first half of 2013 averages 940 beds per day. Some of the reduction in utilization during the first half of 2013 is expected to be offset by additional third parties occupying the facilities.

With a strong slate of upcoming project bidding opportunities, management is confident that the utilization rate on these assets, either at their current location or relocated to new projects, will approach historic levels as the Company moves through the second half of 2013.  Horizon's bidding back log is currently in excess of 4,000 beds and includes projects in the SAGD oil sands, natural gas and mining sectors.

With the prospective relocation of assets, Horizon is reducing its 2013 capital spending plans to $80 million from the previously discussed amount of $110 million.

Corporate Information
Additional information related to the Corporation, including the Corporation's annual information form, press releases, financial statements, and MD&A are available on SEDAR at www.sedar.com.

Forward-Looking Statements
Certain statements contained in this news release may constitute forward-looking statements or information.  All statements other than statements of historical fact contained in this news release may be forward-looking statements or information.  In particular, forward-looking information includes the statements "Some of the reduction in utilization during the first half of 2013 is expected to be offset by additional third parties occupying the facilities" and "With a strong slate of upcoming project bidding opportunities, management is confident that the utilization rate on these assets, either at their current location or relocated to new projects, will approach historic levels as the Company moves through the second half of 2013."  There is a risk that such targets may not be met.  As such, many factors could cause the performance or achievements of Horizon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements.

SOURCE: Horizon North Logistics Inc.

For further information:

please contact Bob German, President and Chief Executive Officer or Scott Matson, Vice President Finance and Chief Financial Officer, 1600, 505 - 3rd Street S.W., Calgary, Alberta T2P 3E6; Telephone: (403) 517 - 4654; Fax: (403) 517 - 4678; Website: www.horizonnorth.ca