Newalta Announces $145 Million Capital Budget for 2012

CALGARY, ALBERTA--(Marketwire - Dec. 8, 2011) - Newalta Corporation ("Newalta") NAL today announced its planned capital budget of $145 million for 2012 - a 32 percent increase over its 2011 budget and an indication of the Company's strong outlook for growth opportunities. Growth capital expenditures are expected to be $115 million, and maintenance capital expenditures are budgeted at $30 million. Capital expenditures are anticipated to be predominantly funded from funds from operations, with approximately 60 percent expected to be spent in the first half of 2012.

"We have an outstanding inventory of low-risk, high-return organic growth projects for 2012," said Al Cadotte, President and Chief Executive Officer of Newalta.

Newalta's $115 million in growth capital investments for 2012 will be allocated among the following areas:

Facilities                            $45 million                           
                                                                            
Onsite                                $55 million                           
                                                                            
Technical Development & Corporate     $15 million                           

In our Facilities Division, we have increased revenue five times since 2000 through expanding the network across Canada and diversifying the industries in which we serve. Our facility network represents the backbone of our operations, and has enabled us to establish a solid safety track record and develop strong working relationships with our top tier, multinational customers and regulators. In 2012 and beyond, we have opportunities to continue to grow the business through the following initiatives:

--  Productivity improvements - These are generally small individual
    projects that apply proven technologies and processes, and can be
    deployed across multiple locations. 

--  Transferring of existing services - Transferring our oilfield waste
    processing equipment and expertise over time from the west to the east
    coast offshore, for example. 

--  Expanding processing capacity at existing facilities - For example, over
    the next four years we will double capacity of our used oil re-refinery
    in North Vancouver, B.C. to meet increased market demand for recycled
    lubricating oils.  

--  Addition of facilities - We plan to continue to add satellite facilities
    to our network. These are essentially regional collection and bulking
    facilities that facilitate the expansion of our geographic coverage and
    improve utilization of our existing assets. Longer term, we also expect
    to add two new large processing facilities in Canada and two transfer
    stations in the U.S. to allow for U.S. waste to be processed by our
    eastern Canadian facilities. 

Our Onsite Division was just a concept five years ago, and today has grown to approximately $200 million in revenue. We establish our market position through the execution of short-term projects of less than one year, which ideally have the potential to lead to longer-term contracts, providing a more stable cash flow. The cycle to establish longer-term contracts can be between 18 months to three years. In 2012, most of the capital will be dedicated to supporting the transition of three projects executed in 2010 and 2011 into contracts. These three contracts are currently in the design or construction phase and include the three-year contract with Syncrude to process oil sands mature fine tailings. Included in the 2012 Onsite budget is approximately $10 million towards the expansion of our U.S. business. Part of this capital will be directed to expanding our drill site services, and our oil recovery processing that we began in the Bakken in 2011. In addition, our 2011 investment in TARM will be directed towards developing two additional water recycling facilities serving the Marcellus.

Our Technical Development group was established last year to search globally for the best available technologies, with a goal to transfer at least two new proven processes every year to our operations for commercial application in our facilities or on customer sites. Our first commercial demonstration technology is scheduled to be commissioned by mid-2012. Adding a steady stream of new recycling and recovery options for our customers will continue to differentiate our company and fuel our growth beyond 2013.

"The investments that we made this year will drive growth in 2012, and these 2012 investments will provide the foundation for continued strong growth in 2013," added Mr. Cadotte.

Newalta provides cost-effective solutions to industrial customers to improve their environmental performance with a focus on recycling and recovery of products from industrial residues. These services are provided both through our network of 85 facilities across Canada and at our customers' facilities where we mobilize our equipment and people to process material directly onsite. Our customers operate in a broad range of industries including the oil and gas, petrochemical, refining, lead, manufacturing and mining industries. The company has delivered strong, profitable growth for over 15 years and has established a leadership position in the industry with talented people, efficient and safe operations, innovative approaches and high ethical standards. Newalta trades on the TSX as NAL. For more information, visit www.newalta.com.

This press release contains forward-looking information. More particularly, this press release contains forward-looking information concerning the amount of the capital budget for 2012, plans for capital expenditures, growth strategy and implementation of growth opportunities, demand for our services and the results of such expenditures and strategy, including expected profitability. Although Newalta believes that the expectations reflected in this forward-looking information are reasonable, undue reliance should not be placed on it because Newalta can give no assurance that it will prove to be correct. Forward-looking information is based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Newalta and described in the forward-looking information contained in this press release. Among the various factors that could cause results to vary materially from those indicated in the forward-looking information include: failure to realize growth anticipated by the proposed capital spending, a reduction in funds from operations, ability to transition short term projects to long term contracts, ability to commercialize new technologies, limitations on bank borrowing, fluctuations in commodity prices, currency value and interest rates, increased costs for equipment purchases and facility construction and delays in obtaining equipment, necessary regulatory approvals and in the construction of facilities. In addition, Newalta regularly assesses the allocation of capital expenditures and, as such, the aggregate dollar amount to be expended and the amounts allocated to each growth area and operating division may be reallocated between the divisions and specific projects. Readers should also be aware that the forward-looking information is also affected by the risk factors described in Newalta's other annual information form and those set forth from time to time in Newalta's continuous disclosure filings with Canadian securities regulatory authorities, which are available under Newalta's SEDAR profile at www.sedar.com.

The forward-looking information contained in this press release is made as of the date hereof and Newalta undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.