ENT Entrec Corporation

ENTREC Corporation ("ENTREC")(TSX VENTURE:ENT) is pleased to announce it has
entered into a letter of intent, subject to certain conditions, to acquire 100%
of the issued and outstanding shares of Tiggo Transport Ltd. ("TIGGO"). Based in
Grande Prairie, Alberta, TIGGO has been providing heavy haul transportation and
lifting services to the oil and gas industry since 1999. In 2010, TIGGO expanded
its operations into Dawson Creek, British Columbia. TIGGO operates a modern and
well maintained equipment fleet valued at approximately $10 million, including 6
crane mounted picker trucks, 25 tractor units, 25 support vehicles, and over 60
trailers. 


"TIGGO is a very well managed and highly respected company in the transportation
industry and we look forward to welcoming David and his team into the ENTREC
family," comments John M. Stevens, ENTREC's President and COO. "With TIGGO,
ENTREC will now have strategically placed operating locations in all of our key
markets throughout western Canada. With these hubs in place, we believe we are
well positioned to achieve significant organic revenue growth over the coming
years." 


"Our merger with ENTREC sets the stage for the continued expansion of our
services throughout the Peace Country in north-east BC and north-west Alberta,"
comments David Friesen, TIGGO's Founder and President. "We believe ENTREC is a
great fit, not only for our business as it grows in the future, but for our
employees as we share many of the core values that have made both of our
businesses successful." 


Going forward post-transaction, David Friesen will continue to manage TIGGO's
current operating locations in Grande Prairie, Alberta and Dawson Creek, British
Columbia.


The aggregate consideration payable for 100% of the issued and outstanding
shares of TIGGO will consist of (i) the issuance of 4,800,000 common shares of
ENTREC; (ii) $10,000,000 in cash, less any debt outstanding as at closing; and
(iii) a non-interest bearing vendor take-back arrangement for $3,000,000,
payable in cash and due April 1, 2013. ENTREC expects to increase the amount
available under its senior credit facilities to finance the cash portion of the
purchase price. The acquisition of TIGGO is anticipated to close on November 1,
2012.


During the year ended March 31, 2012, TIGGO generated earnings before interest,
taxes, depreciation and amortization ("EBITDA") of approximately $6 million. 


Reader Advisory

Completion of the proposed transaction is subject to, among other things, the
negotiation and execution of a definitive binding agreement, approval of the
board of directors of ENTREC, regulatory approval (including but not limited to
the approval of the TSX Venture Exchange), receipt of debt financing sufficient
to complete the transaction, and the completion of due diligence activities.
There can be no assurance that these conditions precedent, or any other
conditions precedent, will be satisfied. Further, there can be no assurance that
the proposed transaction will be completed as proposed or at all. 


About ENTREC

ENTREC specializes in the lifting, transportation (over the road and on-site),
loading, off-loading and setting of overweight and oversized cargo for the oil
and gas, construction, petrochemical, mining and power generation industries.
The common shares of ENTREC trade on the TSX Venture Exchange under the trading
symbol "ENT". 


Forward-looking statements

This press release contains forward-looking statements that reflect ENTREC's
current beliefs and that are based on information currently available to ENTREC.
These statements require ENTREC to make assumptions it believes are reasonable
but, as a result of such assumptions, such forward-looking statements are
subject to inherent risks and uncertainties. Actual results and developments may
differ materially from the results and developments discussed in the
forward-looking statements as certain of these risks and uncertainties are
beyond ENTREC's control. 


Examples of such forward-looking statements in this press release relate to, but
are not limited to, (i) ENTREC's expectation that the TIGGO acquisition will be
completed and the terms on which it will be completed, (ii) belief that ENTREC
will be well positioned to achieve significant organic revenue growth over the
coming years, and (iii) ENTREC's expectation it will increase the amount
available under its senior credit facilities. These forward-looking statements
rely on certain expectations and assumptions, including, among others, (i) the
results of ENTREC's due diligence review of the business proposed to be acquired
being satisfactory, (ii) the ability of the parties to agree to the terms of a
definitive agreement, (iii) the ability of ENTREC to receive the various
approvals required, (iv) ENTREC obtaining additional debt financing and on terms
that are satisfactory to the lenders and ENTREC, and (v) TIGGO meeting or
exceeding ENTREC's internal revenue, net income, and cash flow forecasts for
that business in the future. 


Although ENTREC believes that the expectations and assumptions on which such
forward-looking statements are based are reasonable, undue reliance should not
be placed on the forward-looking statements because ENTREC can give no assurance
that they will prove to be correct. The results of the due diligence review on
the businesses proposed to be acquired by ENTREC may be less than satisfactory,
the parties may be unable to agree to the terms of the definitive documentation
required for the transaction, and ENTREC may not be able to obtain additional
debt financing and all required approvals. Readers are cautioned not to place
undue reliance on these forward-looking statements, which are given as of the
date hereof, and to not use such forward-looking statements for anything other
than their intended purpose. ENTREC undertakes no obligation to update publicly
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

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