Aveda Transportation and Energy Services Inc. (TSX VENTURE:AVE) ("Aveda" or the
"Company"), a leading provider of oilfield hauling services and equipment
rentals to the energy industry, today announced that, through its operating
subsidiary in the US, it has signed an asset purchase agreement to acquire the
operating assets of Williston, North Dakota-based M&K Hotshot & Trucking, Inc.
and M&K Rig Service, Inc. (collectively "M&K"). Aveda expects to acquire
approximately 170 pieces of oilfield hauling equipment, including 79 trailers,
15 conventional tractors, 14 winch trucks and three cranes, and approximately
395 pieces of rental equipment with an estimated total fair market value of
US$22.0 million, working capital estimated at US$5.5 million and other
intangible assets. The initial purchase price is expected to be between US$38.0
million and US$42.0 million or 3.18 times 2013 EBITDA (expected to fall in the
range of US$12.0 million and US$13.0 million), which includes the issuance of
US$5.0 million in equity of Aveda at a price of $3.60 per share. An estimated
US$9.0 million in additional consideration may be payable on an earnout basis
over a period of three years if certain EBITDA levels are generated.


"This transformational acquisition will provide Aveda with a strong presence in
another established, oil-focused basin in the US," said Kevin Roycraft,
President and CEO of Aveda. "We expect to realize a number of synergies through
the combination of Aveda's brand and operational platform and M&K's high quality
fleet and regional expertise that will help support future growth. This
transaction also supports our entry into the US rentals business and will
provide opportunities to re-deploy under-utilized assets from the Western
Canadian Sedimentary Basin to areas of more stable activity in the Williston
Basin."


Between 2010 and 2012, M&K nearly tripled revenue from US$11.6 million
(unaudited) to US$33.5 million and grew EBITDA from US$3.1 million (unaudited)
to US$12.4 million. EBITDA margins between 2010 and 2012 ranged between 26.8%
and 40.2% (unaudited). Fiscal 2013 revenue is estimated to be between US$39.0
million and US$41.0 million and normalized EBITDA to fall in a range between
US$12.0 million and US$13.0 million. Investors are cautioned that historical
financial information is not indicative of either expected or actual future
performance.


"Completing this acquisition essentially doubles the size of the Company on an
EBITDA basis, adding valuable scale, stability and further geographic diversity
to our US operations," said Bharat Mahajan, Vice-President, Finance and CFO of
Aveda. "The assets being acquired have a demonstrated track record of supporting
solid margins and creating value in a region with continued robust activity
levels."


Upon the transaction closing, former owners Mark and Kelly Brunelle will join
the Aveda team along with current M&K management and nearly 90 staff to support
ongoing operations and relationship continuity with key customers in the region.


The transaction will have an effective date of January 1, 2014 with closing
expected on or before January 31, 2014 unless mutually extended by the parties.
The transaction is subject to a number of standard conditions precedent to
close, including but not limited to receipt of applicable regulatory approvals,
including approval of the TSX Venture Exchange, and receipt of consents from
certain of M&K's customers to the transfer of their master service agreements to
Aveda's US subsidiary.


With respect to Aveda's senior credit facility arrangements with PNC Bank Canada
Branch, ("PNC"), the Company announces that it has entered into an agreement
with PNC pursuant to which the availability under its current operating facility
(the "Facility") will conditionally (i) be increased to $75.0 million effective
December 31, 2013, $15.0 million of which will not be available to the Company
unless and until the M&K acquisition closes; (ii) be extended to January 1,
2018; (iii) have the interest rate decreased by 50 basis points as long as
Undrawn Availability (as defined in the Facility agreement) is greater than
$10.0 million; and (iv) the removal of all financial covenants as long as
Undrawn Availability is greater than $15.0 million. The Company will pay a
facility increase fee to PNC (the "Initial Facility Fee"), which will be paid by
the Company to PNC on December 31, 2013 and the balance (the "Facility Fee
Balance") to be paid concurrently with the closing of the M&K acquisition. In
the event that the M&K acquisition does not close (i) the availability under the
Facility will be decreased back to the current amount of $50.0 million; (ii) the
Initial Facility Fee will not be recovered; (iii) the Facility Fee Balance will
not be payable; (iv) the interest rate will remain as is; and (v) the financial
covenants will continue to apply as is.


"Securing an increase in our senior credit facility offers us the financial
flexibility to pursue additional acquisition opportunities in high activity
jurisdictions on both sides of the border, leveraging the expanded scale of our
operations," said Bharat Mahajan, Vice-President, Finance and CFO of Aveda. "We
continue to evaluate a range of acquisition and organic growth opportunities
that will help drive long term shareholder value."


The Company is actively pursuing a number of other acquisition opportunities
along with several organic growth initiatives. Investors are cautioned that the
ability of the Company to execute on any of these growth initiatives are subject
to the risk factors outlined below.


About Aveda Transportation and Energy Services

Aveda provides specialized transportation services and equipment required for
the exploration, development and production of petroleum resources in the
Western Canadian Sedimentary Basin and in the United States of America
principally in and around the states of Texas and Pennsylvania. Transportation
services include both the equipment necessary to move the load as well as a
trained, professional driver capable of securing, moving and manipulating the
load at its origin and destination. Aveda's rental operations include the rental
of tanks, mats, pickers, light towers and other equipment necessary for oilfield
operations.


Aveda was incorporated in 1994 as a private company to serve the oil and gas
industry. In the spring of 2006 the Company went public on the TSX Venture
Exchange. Aveda has major operations in Calgary, AB, Slave Lake, AB, Leduc, AB,
Sylvan Lake, AB, Edson, AB, Mineral Wells, TX, Pleasanton, TX, Midland, TX,
Williamsport, PA and Buckhannon, WV. Aveda is publicly traded on the TSX Venture
Exchange under the symbol AVE. For more information on Aveda please visit
www.avedaenergy.com.


This News Release contains certain forward-looking statements and
forward-looking information (collectively referred to herein as "forward-looking
statements") within the meaning of applicable Canadian securities laws. All
statements other than statements of present or historical fact are
forward-looking statements. Forward-looking statements are often, but not
always, identified by the use of words such as "anticipate", "achieve", "could",
"believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate",
"outlook", "expect", "may", "will", "project", "should" or similar words,
including negatives thereof, suggesting future outcomes. In particular, this
News Release contains forward-looking statements relating to: demand for the
Company's services and general industry activity level; the Company's growth
opportunities; and expectation to maintain revenue and equipment utilization.
Aveda believes the expectations reflected in such forward-looking statements are
reasonable as of the date hereof but no assurance can be given that these
expectations will prove to be correct and such forward-looking statements should
not be unduly relied upon.


Various material factors and assumptions are typically applied in drawing
conclusions or making the forecasts or projections set out in forward-looking
statements. Those material factors and assumptions are based on information
currently available to Aveda, including information obtained from third party
industry analysts and other third party sources. In some instances, material
assumptions and material factors are presented elsewhere in this News Release in
connection with the forward-looking statements. Readers are cautioned that the
following list of material factors and assumptions is not exhaustive. Specific
material factors and assumptions include, but are not limited to:




--  obtaining customer consents for the transfer of the master services
    agreements in respect of the M&K acquisition;
--  the final approval of the TSX Venture Exchange for the M&K acquisition;
--  the completion of the M&K acquisition;
--  the performance of Aveda's businesses, including M&K, current business
    and economic trends;
--  oil and natural gas commodity prices and production levels;
--  capital expenditure programs and other expenditures by Aveda and its
    customers;
--  the ability of Aveda to retain and hire qualified personnel;
--  the ability of Aveda to obtain parts, consumables, equipment,
    technology, and supplies in a timely manner to carry out its activities;
--  the ability of Aveda to maintain good working relationships with key
    suppliers;
--  the ability of Aveda to market its services successfully to existing and
    new customers;
--  the ability of Aveda to obtain timely financing on acceptable terms;
--  currency exchange and interest rates;
--  risks associated with foreign operations;
--  changes under governmental regulatory regimes and tax, environmental and
    other laws in Canada and the United States; and
--  a stable competitive environment.



Forward-looking statements are not a guarantee of future performance and involve
a number of risks and uncertainties, some of which are described herein. Such
forward-looking statements necessarily involve known and unknown risks and
uncertainties, which may cause Aveda's actual performance and financial results
in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking statements.
These risks and uncertainties include, but are not limited to, the risks
identified in Aveda's annual information form and management discussion and
analysis for the year ended December 31, 2012 (the "MD&A"). Any forward-looking
statements are made as of the date hereof and, except as required by law, Aveda
assumes no obligation to publicly update or revise such statements to reflect
new information, subsequent or otherwise.


This News Release contains the terms EBITDA and normalized EBITDA. EBITDA is
defined in the MD&A. Normalized EBITDA is EBITDA adjusted for one-time costs as
agreed to in the definitive agreement for the M&K acquisition. EBITDA and
normalized EBITDA as discussed do not have any standardized meaning prescribed
by international financial reporting standards (IFRS) and therefore may not be
comparable with the calculation of similar measures for other entities.
Management uses normalized EBITDA to analyze the operating performance of the
M&K acquisition. Normalized EBITDA as discussed is not intended to represent
cash provided by operating activities, net earnings or other measures of
financial performance calculated in accordance with IFRS.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Aveda Transportation and Energy Services Inc.
Bharat Mahajan, CA
Vice President, Finance and Chief Financial Officer
(403) 264-5769
bharat.mahajan@avedaenergy.com
www.avedaenergy.com
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