PRP Purpose Conservative Income Fund

ProSep Inc. (TSX:PRP) ("ProSep" or the "Company"), dedicated to providing
process solutions to the oil and gas industry, today wishes to provide this
bi-weekly default status report (the "Default Status Report") in accordance with
Policy Statement 12-203 respecting Cease Trade Orders for Continuous Disclosure
Defaults ("Policy Statement 12-203"). On April 1st, 2013, the Company announced
(the "Default Announcement") that, for the reasons disclosed in the Default
Announcement, the filing of its annual audited financial statements (and related
CEO and CFO certifications as required by National Instrument 52-109
Certification of Disclosure in Issuers' Annual and Interim Filings), the
accompanying management's discussion and analysis as well as its annual
information form for the year ended December 31, 2012 (collectively, the "2012
Annual Disclosure Documents") would not be completed within the period
prescribed for the filing of such documents under Parts 4, 5 and 6 of National
Instrument 51-102 respecting Continuous Disclosure Obligations, namely within 90
days from its year end date.


As a result of this delay in filing the 2012 Annual Disclosure Documents, the
Company's principal regulator, the Autorite des marches financiers, issued on
April 12, 2013 a management cease trade order (the "MCTO") which restricts all
trading in securities of the Corporation, whether direct or indirect, by
management and insiders of the Company. The issuance of a MCTO does not affect
the ability of persons who are not insiders of the Company to trade in the
Company's securities.


ProSep's board of directors and its management confirm once again that they are
working expeditiously to meet the Company's obligations relating to the filing
of the 2012 Annual Disclosure Documents. More specifically, the Company is
working towards evaluating the effects of the new conditions proposed by one of
the Company's subsidiary's lender pursuant to a breach of covenant under its
credit facility and clarifying the work assumptions in relation with the audit
of the 2012 Annual Disclosure Documents with its auditors. The Company continues
to expect to file the 2012 Annual Disclosure Documents on or about May 15, 2013.


Since the Default Announcement, and as announced on April 23, 2013, the Company
successfully completed the previously announced sale of its 51% investment in
ProSep Kolon Company Ltd, a South Korean joint venture with Kolon Group, for
total consideration of $5 million. After reimbursement of a related $1 million
debenture, this transaction provided net proceeds of approximately $4 million to
be used as working capital.


Pursuant to the provisions of the alternative information guidelines specified
by Policy Statement 12-203, the Company reports that since the Default
Announcement, except as stated in this Default Status Report, there have not
been any material changes to the information contained therein; nor any failure
by the Company to fulfill its intentions as stated therein with respect to
satisfying the provisions of the alternative information guidelines; nor any
additional defaults or anticipated defaults subsequent to the disclosure
therein. Furthermore, there is no additional material information respecting the
Company and its affairs that has not been generally disclosed.


Until the 2012 Annual Disclosure Documents have been filed, the Company intends
to continue to satisfy the provisions of the alternative information guidelines
specified by Policy Statement 12-203 by issuing bi-weekly default status reports
in the form of further press releases, which will also be filed on SEDAR. The
Company would file, to the extent applicable, its next default status report on
or about May 10, 2013.


About ProSep 

ProSep is a technology-focused process solutions provider to the upstream oil
and gas industry. ProSep designs, develops, manufactures and commercializes
technologies to separate oil, water and gas generated by oil and gas production.
For more information, please visit www.prosep.com. 


Caution concerning forward-looking statements 

This press release may contain forward-looking statements within the meaning of
Canadian securities laws. Forward-looking statements can generally be identified
by the use of the conditional tense, the words "may", "should", "would",
"believe", "plan", "expect", "intend", "anticipate", "estimate", "foresee",
"objective" or "continue" or the negative of these terms or variations of them
or words and expressions of similar nature. In particular, forward-looking
statements regarding ProSep's plans for its business development strategy,
anticipated customer orders, sales and revenues, financial and operational
projections and anticipated results, anticipated results of field testing with
potential customers and expected benefits of ProSep's proprietary technologies;
and anticipated impact on ProSep of the factors discussed under the heading
Selected Risks in the latest management discussion and analysis document
("MD&A"). These forward-looking statements are based on, among other things,
management's assumptions, expectations, estimates, objectives, plans and
intentions as of the date hereof pertaining to, but not limited to demand for
ProSep's solutions, projected revenues and expenses, the economic and industry
environments in which the Company operates or which could affect its activities,
the Company's ability to attract new customers, projected operating costs and
cost of raw materials and energy supply, expected timing and amount of capital
expenditures program of ProSep's potential customers, target market acceptance
of ProSep's solutions, current and future solutions performance, evolving market
conditions for oil & gas producers; and success of commercialization approach
and strategic partnership initiatives. Although ProSep believes that the
expectations and assumptions on which the forward-looking statements are based
are reasonable, undue reliance should not be placed on the forward-looking
statements because ProSep can give no assurance that they will prove to be
correct. Because forward-looking statements address future events and
conditions, by their very nature they involve numerous inherent risks and
uncertainties that contribute to the possibility that the forward-looking
statements may prove to be incorrect. ProSep cannot assure investors that any of
these forward-looking statements will prove to be accurate. Further, if any of
these statements are inaccurate, the inaccuracy may be material.


Actual performance and results could differ materially from those currently
anticipated in the forward-looking statements due to a number of factors and
risks. Some of the factors that could cause such differences include, but are
not limited to uncertainty as to market acceptance of new solutions and possible
technological change, competition, economic environment and especially
conditions in the oil & gas industry, legislative or regulatory developments,
ProSep's ability to penetrate core markets, expand into new markets and manage
future growth, the need for additional financing and uncertainties as to access
to sufficient capital financing on acceptable terms, uncertainty as to
achievement of profitability and ability to meet cash requirements, availability
and retention of management and key personnel, the long sales and implementation
cycles for ProSep's solutions, reliance on major customers, manufacturing,
project execution, product defect and product liability risks, dependence on
third party suppliers, exchange rate and currency fluctuations, protection of
ProSep's intellectual property rights; and risks related to ProSep's foreign
operations and compliance with anti-corruption and anti-bribery laws.
Assumptions, expectations and estimates made in the preparation of
forward-looking statements and risks that could cause actual results to differ
materially from current expectations are further discussed under "Selected
Risks" in the latest MD&A. In light of the significant risks and uncertainties
in these forward-looking statements, investors should not place undue reliance
on or regard these statements as a representation or warranty by the Company or
any other person that the Company will achieve its objectives, strategies and
plans in any specified time frame, if at all. The forward-looking statements
contained or incorporated by reference in this management discussion and
analysis relate only to events as of the date on which the statements are made.
Except as required under applicable securities legislation, the Company does not
undertake to update or revise these forward-looking statements, whether as a
result of new information, future events or otherwise.


FOR FURTHER INFORMATION PLEASE CONTACT: 
ProSep Inc.
Investor Relations and Media:
Danielle Ste-Marie
VP Marketing & Corporate Development
(514) 522-5550 ext. 238
dste-marie@prosep.com

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