Macro Enterprises : Announces 2016 Second Quarter Results

Note 1 - References to EBITDA are to net income from continuing operations before interest, taxes, amortization and impairment charge. EBITDA is not an earnings measure recognized by International Financial Reporting Standards ("IFRS") and does not have a standardized meaning prescribed by IFRS. Management believes that EBITDA is an appropriate measure in evaluating the Company's performance. Readers are cautioned that EBITDA should not be construed as an alternative to net income (as determined under IFRS) as an indicator of financial performance or to cash flow from operating activities (as determined under IFRS) as a measure of liquidity and cash flow. The Company's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, the Company's EBITDA may not be comparable to similar measures used by other issuers.

• The Company continues to materially exceed industry standard safety averages. As at June 30, 2016 Macro Enterprises has now exceeded 12 quarters and 2.6 million man hours worked without a single lost time injury
• The Company redeemed 1,900 Convertible Preference Shares for $2.2 million reducing future dilution by 4.2% and saving $125,000 in future annualized dividend payments
• The Company is reporting shareholders' equity of $84.1 million or $2.79 per share based on common shares issued and outstanding as at June 30, 2016
• The Company continues to maintain a strong working capital position of $42.3 million or a 6.0x working capital ratio as at June 30, 2016

Consolidated revenue was $4.1 million and significantly less than the $45.8 million reported in the second quarter last year. The material decline in work performed during the quarter was expected due to an industry wide protracted downturn and persistently weak commodity prices. As a result of the uncertainty clients are continuing to defer discretionary integrity and maintenance projects. Revenue recognized during the quarter related to maintenance and integrity work performed under existing master service agreements. In the second quarter last year, most of the revenue was derived from a large pipeline project and a new facilities job.

Operating expenses were $5.7 million or 139% of revenue compared to $36.1 million or 79% of revenue in the second quarter last year. The Company's operating margins remained higher than historical averages due to the mix of variable and necessary costs incurred compounded by a significant decline to revenues during the quarter. All aspects of the Company's operations are being actively examined and streamlined to realize efficiencies and costs savings while ensuring the highest degree of health, safety and environmental standards are maintained. These efficiencies and savings are showing up in the results of operations despite the temporarily deficient margins being experienced.

General and administrative expenses were $1.6 million, down $678,000 and representing a 30% reduction from the $2.3 million incurred prior year. The significant decline is a result of diminished operations concurrent with the Company actively reducing its overhead costs. These reductions have been achieved through headcount and scheduling optimizations, scrutiny of administrative expenditures and a focused effort to cut unnecessary costs. The Company will continue to balance reducing its overheads while ensuring its business development plans are achieved despite these challenging market conditions.

Depreciation of property, plant and equipment was $1.7 million and down slightly from prior year's second quarter. Depreciation is calculated at various declining balance methods across the Company's multiple categories of property, plant and equipment and is used in guiding the annual capital expenditure estimates. Residual values, methods of amortization and useful lives of the assets are reviewed annually and adjusted if appropriate.

During the second quarter the Company recognized a non-cash gain of $205,000 on the mark-to-market re-measurement of its preferred shares at period end.

During the second quarter the Company recognized non-cash stock-based compensation charges of

$203,000 relating to options granted in prior years. The Company anticipates recognizing an additional

$0.4 million in stock-based compensation pertaining to past grants over the next 5 quarters.

Finance costs were up $17,000 from prior year's second quarter costs of $155,000 to $172,000. Included in the finance costs were the 6.5% dividend payments to the preferred shareholders now recorded as an effective interest rate payment for the quarter, the $72,000 in amortized deferred financing costs, stand- by fees for the senior secured credit facility and interest expense payments for the remaining capital leases outstanding as a June 30, 2016.

Income tax recovery in the quarter of $1.3 million was in line with current enacted tax rates of approximately 27%.

Net loss was $3.6 million (($0.12) per share) compared to a net income of $3.8 million ($0.12 per share) recognized during the three months ended June 30, 2015. The decrease in net income was a result of depressed quarterly results compounded by an industry wide protracted downturn.

Activity levels in the oil and gas industry have been materially impacted across Western Canada as a result of the volatility in commodity prices. Although the pricing uncertainty is affecting activity and many projects have been delayed, large oil and gas companies are continuing to request bids on significant projects, both LNG-related and not. With a solid balance sheet, enhanced liquidity and its industry leading health, safety and environmental practices, the Company is in excellent financial shape to address these uncertain times.

The Company will maintain its focus on working with blue chip pipeline owners and operators to carry out their construction and maintenance programs across Canada.

As part of its overall strategy to develop a significant backlog of work and revenue certainty, including having added larger credit facilities, the Company is seeking out pipeline and facilities construction contracts in connection with the Liquefied Natural Gas (LNG) projects being planned on the west coast of British Columbia, an industry that is anticipated to bring substantial economic activity to British Columbia over the next 30 years. Macro continues to have discussions with the LNG project owners regarding future pipeline and facilities construction.

The Company's revolving operating facility will provide enhanced flexibility and essential funding support as the Company works to realize those large-scale potential growth opportunities. The secured letter of credit facility is intended to facilitate the issuance of letters of credit to support qualifying projects.

Macro has also been assisting clients with budget and constructability estimates on fee based recovery arrangements.

If investment decisions continue to be deferred and as a result of market conditions, the Company is anticipating a protracted slower period of business activity over the next 12 to 18 months. The Company expects third quarter revenues to be greater than the entirety of the first half of fiscal 2016 revenues. However, as a result of its operating deficiencies the Company will be challenged to return to a bottom

line positive cash flow activity for its full fiscal 2016 year end results. Recurring revenues from its existing master service agreements will represent the bulk of activity.

Macro's core business is providing pipeline and facilities construction and maintenance services to major companies in the oil and gas industry in northeastern B.C. and northwestern Alberta. The Company's corporate office is in Fort St. John, British Columbia. Its shares are listed on the TSX Venture Exchange under the symbol MCR. Information on the Company's principal operations can be found at www.macroindustries.ca

Certain statements in this news release may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements regarding expected revenues, expenses and industry trends and the pursuit of strategic acquisitions. These risks and uncertainties include, but are not restricted to, global economic conditions, government regulation of energy and resource companies, seasonal weather patterns, maintaining and increasing market share, terrorist activity, the price and availability of alternative fuels, the availability of pipeline capacity, and potential instability or armed conflict in oil producing regions. These risks and uncertainties may cause actual results to differ from information contained herein. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Except as required by law, the Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.

For further information please contact:

Frank Miles Jeff Redmond

President and C.E.O. C.F.O.

Phone: (250) 785-0033 (250) 785-0033