FFM

Formation Fluid Management Inc. (TSX VENTURE: FFM) (the "Company") is excited to announce the completion of construction and testing of its first Commercial Mobile Industrial Wastewater Treatment Unit (CMU) and expects to commence field testing with a major oil and gas company shortly.

The CMU is capable of processing flow back and produced waters at 60 cubic meters per hour and is expected to deliver the industry's first low-cost treatment process that can be ramped up and down to meet different oil, gas and industrial wastewater treatment demands. The main treatment unit and the associated filtration unit have both been successfully tested and both units are fully functional and ready for their first significant project.

FFM is also pleased to inform the shareholders that negotiations the past few weeks for its first major contract are ongoing. Once the first unit is under contract and generating revenue FFM intends to start the construction of additional units as soon as possible.

Formation Fluid President and CEO, Al Radford, stated, "We are excited to have achieved this Company milestone of completing construction of our first CMU and are encouraged by the initial testing of the technology. We anticipate field testing to commence shortly and are currently in negotiations with a potential major contract."

About Formation Fluid Corp.

Formation Fluid Technology (Formation Fluids) is the developer and operator of waste water treatment plants that uses a proprietary process to clean waste water. The system is mobile and can be scaled to process any required volume. This system treats water to meet or exceed CCME Guidelines (Canadian Environmental Quality Guidelines), resulting in reusable water that can be used for: Boilers, Frac Water, Water Floods, and Drilling Operations. Servicing a significantly underdeveloped segment within the oil and gas industry, the waste water treatment system can cost effectively deal with produced water issues while satisfying the need to reuse and recycle an increasing valuable resource. For more information, please visit: www.formationfluid.com.

On behalf of the Board of Directors

Al Radford, President & CEO

"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."

Contacts: Formation Fluid Management Inc. Investor Relations Toll Free: 1-888-818-1365 info@fftinc.ca www.formationfluid.com