Sionix Corporation (OTCBB: SINX) Signs Water Treatment Agreement in the Williston Basin of North Dakota

Orlando, FL 3/5/12 (StreetBeat) -- Sionix Corporation (OTCBB: SINX), a designer of patented water treatment systems, announced today that it has entered into a Water Treatment Agreement ("WTA") with McFall Incorporated, a Carnation, WA-based construction and logistics firm operating under a Master Service Agreement with a major oil and gas exploration and production company in the Williston Basin. Sionix will deploy a fully-equipped Mobile Water Treatment System ("MWTS") consisting of de-watering, DAF, filtration, and de-salination components for operation alongside a specific drilling rig. The treatment train for this project is configured to treat drilling fluids flowing to the surface from an initial vertical bore through the water table and hydraulic conductivity zones (approximately 2,200 feet) where chloride concentrations are critical, through the final vertical bore (approximately 10,000 feet), and the horizontal (lateral) bores (approximately 10,000 feet), where salt concentrations are less critical than other contaminants.

Sionix expects to treat from 4,800 - 9,600 barrels of contaminated water per day at specific drill sites. Drilling cycles run approximately 25 days, with 8 days allocated for teardown and set-up at the next drilling site, or approximately 11 drilling cycles per year. The Sionix MWTS will be embedded with a specific drilling rig and will be transported to successive sites together. The WTA defines a scale of treatment revenues dependent upon contaminant loading of influent water at each drilling site. Configuration changes (if any) in the MWTS from site to site will be insignificant as conditions in the subterranean geologic strata are expected to remain consistent within the entire Williston Region. The 8-day relocation time will give Sionix the opportunity to perform routine maintenance and system enhancements, if needed, without interrupting normal drilling cycles. James Currier, Sionix Corp CEO stated, "We are pleased and excited to provide our unique patented and proprietary technology to support large scale operations in a critical American oil field." The MWTS has the capability of providing turnkey, sustainable solutions which enable exploration and production companies to recycle and reuse large amounts of previously non-viable fluids. This deployment confirms the early adoption of recycling capabilities in the Williston Basin.

This major end user is an independent oil and natural gas exploration and production company and a proven leader in the Williston Formation. Sionix Corporation will be the owner/operator of this MWTS and will be compensated on a per gallon basis. "This is an addition to our previous business model of 'selling' a piece of equipment where Sionix would incur a one-time revenue event," Currier stated. By establishing a services revenue model that will own and operate the remediation equipment we will start to generate monthly recurring revenue for every gallon of water we process. "This 'fee per barrel' model will create substantial value for our shareholder base both in the short and long term," said President and CFO David R. Wells.

Sionix expects to deploy the MWTS to the worksite in 4 - 6 weeks.

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