Alanco Energy Services Inc.

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Alanco Energy Services, Inc. (AES) provides waste produced water treatment and disposal services for natural gas and oil producers in the Western Colorado region. AES commenced operation in September, 2012, at its initial service site, designated "Deer Creek", located approximately 20 miles southeast of Grand Junction, Colorado. The Deer Creek facility currently comprises two evaporative ponds totaling approximately 8 acres, with a state-of-the-art produced water treatment facility to remove hydrocarbons and entrained solids.

AES also owns a second 160 acre E&P disposal site near Deer Creek, designated "Indian Mesa", scheduled to commence operation in 2013 providing both produced water and E&P solids disposal, including PCS, drill cuttings and tank bottoms. Both the Deer Creek and Indian Mesa facilities are permitted in accordance with the appropriate county and state authorities, and diligently maintained in compliance with all necessary E&P waste disposal regulations. When fully operational, both AES facilities will accommodate in excess of 5,000 BBLS of produced water per day, and approximately 1,000 tons per day of solid E&P waste.

AES is a wholly-owned subsidiary of  of publicly traded Alanco Technologies, Inc. (OTCQB: ALAN), website www.alanco.com.