FSI Announces 2013 Fourth Quarter and Year-End Financial Results

Richard Ball, Chief Executive Officer of FSI Energy Group Inc. ("FSI" or the
"Company") (TSX VENTURE:FSI), is pleased to announce financial results for the
three and twelve months ended December 31, 2013.




----------------------------------------------------------------------------
                              Twelve months ended        Three months ended 
Financial Highlights:                December 31:              December 31: 
                                2013         2012         2013         2012 
                        ----------------------------------------------------
Cash flow provided by                                                       
 (used in) operations     (5,329,847)   5,810,506     (233,444)   2,682,051 
Cash flow provided by                                                       
 (used in) operations -                                                     
 per share                     (0.17)        0.18        (0.01)        0.08 
Revenue                   12,146,549    3,014,979      364,349      184,112 
Comprehensive income                                                        
 (loss)                      771,819     (733,143)    (429,521)      45,821 
EBITDA(1)                  1,240,460   (1,223,543)    (523,231)    (626,723)
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With the delivery and completion of most the installation of two major brine
plants completed by the third quarter of 2013, FSI focused on contract
negotiation for a major brine plant. As a result, no revenue was generated from
the foreign segment during this period of pre-contract activity and revenue from
the quarter of $364,349 was derived solely from the domestic segment, which was
up 98% over the same quarter last year.


The limited revenue generating activity resulted in an operating loss of
$557,582 for the quarter or 15% lower than the same quarter last year on the
higher domestic revenue. Despite this, the comprehensive loss for the quarter
was $429,521 compared to comprehensive income of $45,821 the same quarter last
year which resulted from the Company recording a deferred tax recovery of
$700,000 on tax assets previously unrecognized.


Although the low activity generated a loss for the quarter, revenue for the year
of $12,146,549 mostly from two major brine plants drove operating profit and
comprehensive income for the year to $1,031,232 and $771,819, respectively, up
from last year's operating loss and comprehensive loss of $1,365,448 and
$733,143, respectively.


The Company's liquidity remains firm as:



--  Current assets of $1.3 million, is more than sufficient to service the
    Company's short term monetary liabilities of $0.9 million (excluding
    loan from bank which is payable only upon demand). 
--  The Company is in compliance with its financial covenants and has $0.6
    million of unused loan facilities to fund future operations 



Although cash used in operations was $5.3 million for year, this primarily
reflects that most of the revenue recognized on the brine plants in 2013 was
collected the prior year through customer deposits. In addition, it also
reflects significant payments to trade payable vendors in respect of brine
construction activity the last quarter of 2013.


Further detail may be found in the Company's Management Discussion and Analysis,
which is available on SEDAR.


About FSI

Through its wholly owned subsidiary FSI International Services Ltd., FSI Energy
Group Inc. is a Calgary-based manufacturing and service company specializing in
customized filtration, filtration-related technologies and Brine Plants for the
energy, chemical, and water treatment industries.


Non-GAAP Financial Measures

EBITDA does not have a standard definition prescribed by GAAP and therefore may
not be comparable to similar measures disclosed by other companies. The Company
utilizes these measures in making operating decisions and assessing the
Company's financial performance and as an indicator of its ability to service
its liabilities. This non-GAAP measure has not been presented as an alternative
to net income (loss) or any other measure of performance or liquidity prescribed
by GAAP. EBITDA is calculated as follows:




----------------------------------------------------------------------------
                              Twelve months ended        Three months ended 
Financial Highlights:                December 31:              December 31: 
                                 2013        2012         2013         2012 
                         ---------------------------------------------------
Comprehensive income                                                        
 (loss)                       711,819    (733,143)    (429,521)      45,821 
Addback (subtract):                                                         
Deferred income tax                                                         
 expense (recovery)           275,000    (700,000)    (143,000)     700,000 
Finance costs                  48,715      94,778       12,114       22,869 
Depreciation included in                                                    
 cost of sales                122,973      91,184       30,600        2,468 
Depreciation                   21,953      23,638        6,576        7,055 
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EBITDA(1)                   1,240,460  (1,223,543)    (523,231)    (626,723)
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Forward-looking Information Cautionary Statement

Certain information contained in this press release, including information and
statements which may contain words such as "could", "plans", "should",
"anticipates", "expect", "believe", "will", and similar expressions and
statements relating to matters that are not historical facts are forward-looking
information. In particular, this press release contains forward-looking
information about the completion of the Brine Plant export contracts and the
revenues associated therewith. Forward-looking statements are based on the
opinions and estimates of management relying on their experience at the date the
statements are made, and are subject to a variety of risks, uncertainties and
other factors that could cause actual events or results to differ materially
from those anticipated in the forward-looking statements including, but not
limited to, the risk factors discussed in FSI's MD&A and other continuous
disclosure documents. All of the forward- looking information contained in this
press release is qualified by this cautionary statement. There can be no
assurance that the actual results or developments anticipated by FSI, as
expressed or implied by the forward-looking information, will be realized or,
even if substantially realized, that they will have the expected consequences to
or effects on FSI or its business operations. FSI disclaims any intention or
obligation to update or revise any forward-looking information as a result of
new information or future events. Readers should not place undue reliance on
forward-looking information.


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: 
FSI Energy Group Inc.
Richard Ball
President and CEO
[phone]
[phone] (FAX)
www.fsigroup.ca