LONESTAR REPORTS 2011 THIRD QUARTER FINANCIAL RESULTS

SYLVAN LAKE, AB, May 28, 2011 /CNW/ - Lonestar West Inc. (TSXV: LSI) today announced its business performance for the third quarter of fiscal 2011.

The Company has generated revenues of $4.0 million in the three months ended March 31, 2011 compared to $1.4 million in the prior year quarter. The net income for the third quarter is $560,969, compared to a loss of $371,509 in the prior year quarter. EBITDAC for the quarter was $839,562 compared to EBITDAC of ($104,465) in the prior year quarter.

President and CEO James Horvath commented, "Revenue and earnings have been meeting expectations due to several factors, such as the increased oilfield activity and improved utilization through the focus on expanding service areas. Our geographical expansion has positively affected our performance as our market size has increased and we have seen an improvement in our cash flow. Subsequent to this quarter end we have seen a slow down in revenues due to seasonality of oilfield service activity."

For complete details on the interim financial statements and MD&A for the 2011 Third Quarter 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 in the market area.

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

Organization Profile

Lonestar West Inc.

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