ENTREC Provides Operational Update, Lowers 2014 Revenue Guidance

ENTREC Corporation (TSX VENTURE:ENT) ("ENTREC" or the "Company"), a leading
provider of heavy lift and heavy haul services, today provided an operational
update and lowered its 2014 revenue guidance.


As was guided in ENTREC's Q4 and year-end financial results press release on
March 10, 2014, the Company has been experiencing lower levels of equipment
utilization to begin 2014. ENTREC expects these lower levels of business
activity to continue into the second quarter. These reduced expectations
primarily relate to the timing and delays in oil sands construction projects.


Based on current expectations for future business activity, and assuming no
business acquisitions are completed, ENTREC estimates revenue for the year
ending December 31, 2014 could range between $230 and $250 million. This range
represents a decline from ENTREC's previous revenue estimate of between $250
million and $270 million and compares to pro forma revenue of $237 million that
ENTREC and each of its acquired businesses achieved on a combined basis in the
year ended December 31, 2013. 


"Our competitive position in our industry and long term outlook remains
positive," said John M. Stevens, ENTREC's President and CEO. "We believe this
period of lower activity will be temporary. We are now geographically positioned
where we want to be, with a growing equipment fleet offering the complete range
of crane and heavy haul transportation services in markets that will drive
significant growth in our business over the long-term. These markets include the
Alberta oil sands region, the development of LNG supply and infrastructure in
northern British Columbia and north-west Alberta, and the Bakken region of North
Dakota." 


Subject to finalization of ENTREC's first quarter financial results, the Company
estimates its first quarter 2014 revenue will approximate $61 million. ENTREC's
2014 first quarter revenue remains subject to final quarter-end billing and
accounting adjustments, and as a result, may be different from current
expectations. The Company expects revenue to trend upward in the second half of
2014 as project work begins to ramp up and utilization levels increase. ENTREC
expects higher utilization levels in later 2014 could also continue into 2015,
2016, and 2017 due to the long-term nature of many oil sands projects.


With ENTREC's lowered revenue outlook for 2014, the Company also expects its
2014 adjusted EBITDA margin will decline from 2013. Lower equipment utilization
levels will result in lower absorption of the fixed components of the Company's
operating costs. In addition, the Company has experienced pricing pressure
related to its heavy haul transportation services due to the current lag in oil
sands construction projects. The Company has experienced significant increases
in fuel costs over the past several months, which have also reduced the
Company's profitability.


ENTREC currently estimates its adjusted EBITDA margin for 2014 could range
between 20% and 22%. Consistent with the anticipated trend in revenue, ENTREC
believes its adjusted EBITDA margin will also begin 2014 lower and then increase
as the year progresses and utilization improves. Subject to finalization of
ENTREC's first quarter financial results, the Company expects its 2014 first
quarter adjusted EBITDA margin could approximate 17%. ENTREC's 2014 first
quarter adjusted EBITDA margin remains subject to final quarter-end accounting
adjustments, and as a result, may be different from current expectations.


ENTREC continues to review its overall capital expenditures needs and reiterates
its $46 million capital expenditure program for 2014, which will position ENTREC
to continue to expand its crane fleet in anticipation of future demand. As part
of this review, the Company has reallocated approximately $5 million of capital
expenditures to equipment types currently experiencing higher levels of
utilization. 


Company Lowering its Cost Structure 

ENTREC is working to diligently manage its cost structure to drive higher
profitability in the future. These measures included a 15% reduction in ENTREC's
salary workforce in late March 2014 and closure of two branches. ENTREC is also
working with its customers to recover a portion of the higher fuel costs through
rate increases and fuel surcharges. 


Normal Course Issuer Bid (NCIB)

In November 2013 ENTREC implemented a NCIB to purchase for cancellation, from
time to time, its issued and outstanding common shares. Pursuant to the NCIB,
ENTREC may purchase for cancellation up to a maximum of 8,561,671 common shares,
being approximately 10% of the public float, during the NCIB's term. The NCIB
commenced November 20, 2013 and will terminate on November 19, 2014 or such
earlier time as it is completed or otherwise terminated at ENTREC's option.


In March and April 2014, the Company acquired 1,474,800 common shares for
cancellation (representing 1.3% of ENTREC's issued and outstanding common
shares) pursuant to the NCIB at an average purchase price of $1.49 per share.


Despite ENTREC's reduced guidance for 2014, the Company does not believe it will
need to raise any additional equity to fund its 2014 capital expenditure program
or NCIB. The Company intends to fund its 2014 capital expenditure program and
NCIB purchases from its new asset-based debt facility, finance leases and cash
from operating activities. 


About ENTREC

ENTREC is a leading provider of heavy lift and heavy haul services with
offerings encompassing crane services, heavy haul transportation, engineering,
logistics and support. ENTREC provides these services to the oil and natural
gas, construction, petrochemical, mining and power generation industries.
ENTREC's common shares trade on the TSX Venture Exchange under the trading
symbol "ENT".


Non-IFRS Financial Measures

Adjusted EBITDA is defined as earnings before interest, income taxes,
depreciation, amortization, loss (gain) on disposal of property, plant and
equipment, change in fair value of embedded derivative, share-based
compensation, and non-recurring business acquisition and integration costs. In
addition to net income, Adjusted EBITDA is a useful measure as it provides an
indication of the financial results generated by ENTREC's principal business
activities prior to consideration of how these activities are financed or how
the results are taxed in various jurisdictions and before certain non-cash
expenses. 


Adjusted EBITDA also illustrates what ENTREC's EBITDA is, excluding the effect
of non-recurring business acquisition and integration costs. Adjusted EBITDA
margin is calculated as adjusted EBITDA divided by revenue. 


Please see ENTREC's Management Discussion & Analysis for the year ended December
31, 2013 for reconciliations of adjusted EBITDA and adjusted net income to net
income, the most directly comparable financial measure calculated and presented
in accordance with IFRS.


Forward-looking Statements

This press release contains forward-looking statements which reflect ENTREC's
current beliefs and are based on information currently available to ENTREC.
These statements require ENTREC to make assumptions it believes are reasonable
and 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 MD&A include, but are not
limited to: expectation that ENTREC's equipment utilization will remain lower
throughout the first half of 2014; estimate that revenue for the year ending
December 31, 2014 could range between $230 million and $250 million; estimate
that revenue for the first quarter ended March 31, 2014 could approximate $61
million; expectation that demand for the Company's services in the Alberta oil
sands region will gain momentum as the year progresses; estimate that overall
adjusted EBITDA margin for fiscal 2014 will decline from 2013 and could range
between 20% and 22% for the year ending December 31, 2014 and approximate 17%
for the quarter ended March 31, 2014; plan to complete a 2014 capital
expenditure program of $46 million; intention that the 2014 capital expenditure
program and NCIB purchases will be funded from the Company's asset-based debt
facility, finance leases and cash from operating activities; and that ENTREC
will not need to raise additional equity to fund its 2014 capital expenditure
program or NCIB.


ENTREC's forward-looking statements involve a number of significant assumptions.
Key assumptions utilized in developing forward-looking statements related to
ENTREC's growth and revenue expectations include achieving its internal revenue,
net income and cash flow forecasts for 2014 and beyond. Key assumptions involved
in preparing ENTREC's internal forecasts include, but are not limited to, its
expectations and estimates that: demand for crane and heavy haul transportation
services in western Canada increase from current levels in the second half of
2014; ENTREC will be able to retain key personnel and attract additional
high-quality personnel to support its planned revenue growth; construction
projects and production activity in the Alberta oil sands region and in northern
British Columbia continue at or above current levels; ENTREC is able to achieve
anticipated revenues on current and future MRO contracts; the planned
development of LNG facilities proceeds and certain customers choose to utilize
ENTREC's services; there are no significant unplanned increases in ENTREC's cost
structure, including those costs related to fuel and wages; market interest
rates remain similar to current rates and that additional debt financing remains
available to ENTREC on similar terms to its existing debt financing; there is no
prolonged period of inclement weather that impedes or delays the need for crane
and heavy haul transportation services; the competitive landscape in western
Canada for crane and heavy haul transportation services does not materially
change during the remainder of 2014; and there is no material adverse change in
overall economic conditions.


Achieving these forecasts largely depends on a number of factors beyond ENTREC's
control including several of the risks discussed further under "Business Risks"
in ENTREC Management's Discussion & Analysis for the year ended December 31,
2013. The business risks that are most likely to affect ENTREC's ability to
achieve its internal revenue, net income and cash flow forecasts for 2014 and
beyond are the volatility of the oil and gas industry, its exposure to the
Alberta oil sands, workforce availability, competition, weather and seasonality,
availability of debt and equity financing, competition, and business integration
risks. These risk factors are interdependent and the impact of any one risk or
uncertainty on a particular forward-looking statement is not determinable. 


ENTREC's intention to acquire shares pursuant to its NCIB is subject to
potential fluctuations in the market price of its shares and the potential
management may find another, more desirable use for its available funds.


ENTREC's ability to finance its capital expenditure program through its debt
facilities depends on its ability to achieve debt financing terms acceptable to
the lenders and ENTREC as well as meeting its internal cash flow forecasts. 


Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements and other cautionary statements or
factors contained herein, and there can be no assurance that the actual results
or developments will be realized or, even if substantially realized, that they
will have the expected consequences to, or effects on, ENTREC. These
forward-looking statements are made as of the date of this press release. Except
as required by applicable securities legislation, ENTREC assumes no obligation
to update publicly or revise any forward-looking statements to reflect
subsequent information, events, or circumstances.


Neither the 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.


FOR FURTHER INFORMATION PLEASE CONTACT: 
ENTREC Corporation
John M. Stevens
President & CEO
[phone]


ENTREC Corporation
Jason Vandenberg
CFO
[phone]
www.entrec.com