Lonestar West Inc. Closes on New Credit Facility

SYLVAN LAKE, AB, Nov. 30, 2011 /CNW/ - Lonestar West Inc. (TSXV: LSI) announced today that it closed an expanded credit facility with a major credit union to meet the Company's continued goal to grow its operating fleet.

The new credit facility provides up to $1,000,000 of borrowing capacity through a revolving line of credit, which contains similar pricing terms and fewer financial ratio requirements than the previous $500,000 credit facility held by Lonestar Vacuum Inc., a wholly owned subsidiary of Lonestar West Inc. The facility has no stated maturity and is reviewed annually.

"Given the significant growth of our business, we required a larger facility to meet our growing working capital needs. The expanded facility offers Lonestar increased financial flexibility and the opportunity to further execute our growth strategy.," stated James Horvath, President and CEO.

Business Description

Lonestar West Inc. href="http://www.lonestarwest.com/">(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.

SOURCE Lonestar West Inc.

For further information:

James Horvath, President and CEO      (403) 887-2074
Bev Roome, CA, Chief Financial Officer     (403) 887-2074

Profil de l'entreprise

Lonestar West Inc.

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