Ridgeline Announces Management Agreement

M2 Renewables Joins Ridgeline's Growing Team

Patented Technologies and Water Treatment Assets

CALGARY and SCOTTSDALE, AZ, May 13, 2013 /CNW/ - Ridgeline Energy Services Inc. ("Ridgeline" "RLE" or the "Company") (TSXV: RLE, OTCQX: RGDEF, FSE: RL7) a technology driven company operating in the waste water industry, today announced a Management Agreement with M2 Renewables ("M2R") of Lake Forrest, California, effective May 10^th, 2013.

The Management Agreement allows Ridgeline to manage M2R while a definitive agreement to purchase all interests of M2R by Ridgeline is finalized by mid-June, 2013. A required third party audit will be conducted of M2R.

M2R operates on a seven acre industrial waste water treatment facility located in Fontana California. In addition, M2R has installed its waste water treatment technology in some of the largest food processing plants in the United States. M2R also operates sales offices in Kansas City, central to Ridgeline's Carthage, Missouri facilities.

M2R technology centers on a patented MicroScreen process and patented tertiary filtration system that eliminates suspended solids as well liquid contaminates.

This transaction marks the fifth Ridgeline Management Agreement in just over one year. A step by step process used successfully at the Santa Fe Springs facility in California, and the Company's Carthage, Missouri facility. The Management Agreement allows Ridgeline to do a higher degree of diligence as the company has full access and visibility of financials, operating capabilities, customers, suppliers, and all aspects of managing the business. Ridgeline will have independent auditors reviewing all financial and business records of M2R since its inception in 2003.

The definitive agreement expected to be executed next month, will include all M2R patents and intellectual property. The Management Agreement and future definitive agreement are expected to add approximately $ 5.5MM in annual revenues for this fiscal year alone. The Management Agreement includes a $ 150,000 per month payment to Ridgeline for initial costs of matriculating in operations of M2R. Seventy percent of the final purchase of M2R by Ridgeline is based on an agreed earn out schedule. Ridgeline's in house manufacturing is expected to more than double M2R's sales margins.

Dennis M. Danzik, CEO stated; "The addition of  the substantial suite of M2R business operations, Patents and equipment to Ridgeline is immediately accretive, and completely disruptive to current technology; specifically, when it comes to two dated technologies; dissolved air flotation and solids dewatering. The combination of Ridgeline's micro gas separation technology and M2R MicroScreen conserves up to 70% of the energy used in older technologies and substantially reduces the use of water treatment chemicals. M2R joining the Ridgeline Team brings three major components to our Company's future. First, a great geographic location in Fontana California, that extends our rapidly growing market reach in Southern California. Unlike our build out challenges at our Santa Fe Springs, that took months to upgrade; the Fontana facility is a fully functioning water treatment complex that not only treats water for major customers, but delivers a substantial portion of that water back for industrial reuse. Second is the perfect bolt on, patented technology that M2R has developed, and commercialized. The M2R group brings a new line of products to manufacturing at Ridgeline. Last but not least, is the world class team at M2R, including depth of financial management, unmatched environmental experience, and technological abilities second to none in tertiary water treatment. Our team at Ridgeline knew that M2R and its management had several paths to business objectives. We are very pleased that M2R management chose Ridgeline. It is a very flattering endorsement. One visit to the M2 Renewables website will both educate and impress."

Christopher Rhoades, M2R CEO stated, "I am very excited about the synergies between M2 Renewables and Ridgeline Energy Services. The M2R MicroScreen and Modular Filter Systems will significantly enhance the solids removal process and reduce cost for Ridgeline's fast-growing industrial waste water and oil and gas business segments.  Ridgeline provides us with an improved business model to actually design, build, own and operate our combined technologies at our facilities or the customer's site. Together, we will provide more value to the industrial customer while expanding Ridgeline's ability to mine waste water for valuable materials to be converted to fuel and other energy products at the Ridgeline plants.  Further, Ridgeline's manufacturing capabilities will allow us to significantly reduce costs, which will drive margin expansion and market share opportunities."

The Management Agreement between Ridgeline and M2R will expand revenue opportunities immediately in the mid-West including Kansas, Arkansas, Texas, Louisiana, Mississippi, and Tennessee. The newly combined technology assets will be focused on large food processing plants in the mid-West that are currently experiencing substantial cost increases in waste water processing and disposal. M2R has installations at some of the largest food processors in the world, and nearly a dozen purchase orders for initial testing, primarily in the central and southern United States.

About M2 Renewables:

M2R developed, patented, and has commercialized technology in the treatment of municipal and select industrial waste water. M2R technology reduces capital costs by 50%, electricity costs by 20 to 80%, and reduces the footprint required by 90% over conventional dissolved air water treatment and chemical flocculation. The company's systems can also convert wastewater to water that can be used for irrigation and other water reuse applications. Additional information is available on the company's website: www.m2renewables.com

About Ridgeline Energy Services, Inc.

Ridgeline Energy Services Inc. is a technology driven company operating in the waste water industry. The Company is applying proprietary technology to treat water generated from industrial and commercial waste water markets, which can also be mined for valuable effluents and other materials that can be refined into fuels and other products. The Company trades on the TSX Venture Exchange under the symbol "RLE", the OTCQX as "RGDEF" and the Frankfurt Stock and Stuttgart Exchanges as "RL7".

ON BEHALF OF THE BOARD OF DIRECTORS

D.M. Danzik
Dennis M. Danzik
Chief Executive Officer

"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 news release. This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information.  Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements."

SOURCE: Ridgeline Energy Services Inc.

David Waldman
Crescendo Communications
Investor Relations
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