LWP TECHNOLOGIES : COMMENCES OPERATIONS TO FAST TRACK PROPPANT PRODUCTION IN INDIA

• LWP and Hallmark to commence upgrade of Pune plant immediately to fast track production
• LWP receives positive feedback and numerous purchase enquiries from US oil & gas operators
• Company anticipates 24/7 production by Q4 FY2017 - aligns with anticipated increase in demand from industry

The JV partners have made this decision after LWP recently attended a number of oil & gas conferences in the United States (US) to showcase its proprietary low cost proppants, receiving extremely positive feedback, and with several parties enquiring about immediate purchase.

LWP is also encouraged by the changing market dynamics within the oil & gas industry, and anticipates that when production from the Pune plant comes on line (expected in Q4 FY2017), there will be even greater demand for its products across a number of regions.

As previously communicated to shareholders (ASX 11 July 2016), the JV partners had originally agreed on a condition precedent that required an off-take agreement to be secured for the first year of the Pune plants capacity to be pre-sold prior to the majority of funds changing hands for this upgrade.

However, in light of the numerous purchase enquiries received by LWP in the US, and anticipated improved market conditions in the oil & gas industry, LWP has taken the decision to waive this condition precedent so that the upgrade of the Pune plant can begin immediately.

LWP and Hallmark, as previously advised, are also greatly encouraged by the potential demand for both High Strength and Low Strength proppants within India itself, and with market dynamics here driven by the country's increasing demand for oil and related products.

LWP Technologies CEO Sean Corbin stated: "The positive feedback we have had for our proppant products from attending a number of oil & gas conferences in the United States has been very pleasing. More critically, a number of parties have expressed interest in purchasing our products immediately, which indicates an unmet need in the industry."

"Accordingly, we have taken the decision to commence the upgrade of the Pune plant immediately, so that we can achieve 24/7 production as soon as possible, which we expect by Q4 FY17. This timing should also align with widely anticipated improvements in the oil & gas industry overall, which should further drive demand for LWP's low cost proppants."

"We look forward to updating shareholders on our progress with the Pune plant upgrade and on our activities across the business in the months to come."

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For further information please contact:

Sean Corbin CEO

LWP Technologies Limited Phone: 0427 528 618

Email:sean.corbin@live.com.au

LWP Technologies Limited (LWP) is an Australian oil and gas technology company focused on commercialising next generation, fly-ash based, proppants for use in hydraulic fracturing of oil and gas wells globally. LWP is seeking to commercialise its proppants as a cost effective, superior alternative to bauxite and clay based ceramic proppants, typically used in hydraulic fracturing operations currently. The Company commenced proppant production from its pilot scale proppant manufacturing plant in Queensland, Australia, in Q3, 2015. LWP is seeking joint venture partners and/or licensees to commercialise its proppant product, and deliver significant returns to shareholders.

Proppants are a sand-like commodity used to 'prop' open fractures in shale rocks which allows oil and gas to flow. Proppants are often the single largest cost item in the fracking process and represent a multi-billion dollar global market annually. Traditional ceramic proppants are made from clay and/or bauxite.

LWP Technologies ceramic proppants are majority manufactured from fly-ash, a by‐product of coal fired power plants. The Company is of the view that its unique proppant product has the potential to lead the industry due to:

• the widespread abundant availability of fly-ash, often near to oil and gas shale resources;

• the ultra-light weight of LWP fly-ash proppants; and

• the ability of LWP proppants to withstand the very high pressures and heat of deep wells.

LWP proppants have been certified by Independent Experts to meet or exceed both the American Petroleum

Institute standards and the ISO standards.