LONESTAR REPORTS 2011 FIRST QUARTER FINANCIAL RESULTS

SYLVAN LAKE, AB, Nov. 25 /CNW/ - Lonestar West Inc. (TSX(V):LSI) today announced its business performance for the first quarter of fiscal 2011.

Results:

    
    -   generated revenue of $1.6 million in the three months ended
        September 30, 2010, this is a decrease in relation to the comparative
        quarter in the prior year.
    -   loss incurred in the quarter of $27,900 which is a decrease in
        earnings in relation to prior year quarter.
    -   first quarter EBITDAC of $233,463 has decreased in relation to prior
        year quarter however the current quarter results are an increase in
        relation to the last two consecutive quarters.
    

President and CEO James Horvath commented, "We did experience significant weather delays like much of the oilfield sector this quarter and the revenues did not meet our expectations. We have expanded our geographical areas of service which should provide an increase in potential market, however this expansion did come with a lag in revenues. Subsequent to the quarter end we have seen a steady improvement in revenue and customer satisfaction is extremely high."

CONSOLIDATED RESULTS

Financial Results (000's except per share amounts)

    
      -----------------------------------------------------------------------
                                                      3 months ended
      -----------------------------------------------------------------------
                                               September 30     September 30
                                                   2010             2009
      -----------------------------------------------------------------------
      Revenue                                     $1,602        $   2,148
      -----------------------------------------------------------------------
      Operating expenses                           1,097            1,333
      -----------------------------------------------------------------------
      Gross margin                                   505              816
      -----------------------------------------------------------------------
      Net income (loss)                              (28)             272
      -----------------------------------------------------------------------
      EBITDAC                                        233              530
      -----------------------------------------------------------------------
      Earnings per share - basic                  (0.002)           0.021
      -----------------------------------------------------------------------
    

The complete MD&A and interim financial statements for the 2011 First Quarter are available on SEDAR at www.sedar.com.

Business Description

Lonestar West Inc. (www.lonestarwest.com) currently operates a fleet of HVAC and vacuum trucks throughout Western Canada from its base in Sylvan Lake, Alberta. It is focussed on profitably growing its HVAC services to become a major national competitor in the market area.

Lonestar's shares trade on the TSX(Venture) Exchange under the symbol LSI.

Certain information and statements contained herein constitute forward-looking information, including the anticipated costs associated with the purchase of capital equipment, expectations concerning the nature and timing of growth within the business operated by Lonestar, expectations respecting the competitive position of such business, expectations concerning the financing of future business activities and statements as to future economic and operating conditions. Readers should review the cautionary statement respecting forward-looking information that appears in Lonestar's complete MD&A.

%SEDAR: 00027328E

For further information: James Horvath, President and CEO, [phone]; Bev Roome, CA, Chief Financial Officer, [phone]