FSI Announces Non-Brokered Private Placement

FSI Energy Group Inc. ("FSI") (TSX VENTURE:FSI) is pleased to announce that it
has negotiated, subject to TSX Venture Exchange approval, a non-brokered private
placement of 5,500,000 units (the "Units") at $0.10 per unit, for gross proceeds
of $550,000 (the "Private Placement"). Each unit is comprised of one common
share in the capital of FSI (a "Common Share") and one-half of a warrant (a
"Warrant"). Each whole Warrant entitles the holder to purchase one Common Share
at a price of $0.15 per share at any time prior to 4:00 p.m. (Calgary time) on
the date that is twelve months following the closing date of the Private
Placement. The Common Shares and Warrants issued in connection with the Private
Placement will be subject to a four-month hold period from the closing date, as
prescribed by the TSX Venture Exchange and applicable securities laws.


Directors and officers of FSI will acquire approximately 63% of the Units under
the private placement in the amounts shown below:




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Name                           Subscription up to:          Number of Units 
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Ian Ball,                                                                   
CFO and Vice President                    $100,000          1,000,000 Units 
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Perry Ball,                                                                 
Vice President                            $100,000          1,000,000 Units 
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Richard Ball,                                                               
President and CEO                         $105,000          1,050,000 Units 
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Douglas Keller,                                                             
Director                                   $15,000            150,000 Units 
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Dennis Nerland,                                                             
Chair, Board of Directors                  $15,000            150,000 Units 
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Robert Spiller,                                                             
Director                                   $15,000            150,000 Units 
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The participation of the directors and officers of FSI in the Private Placement
means that the Private Placement is considered to be a "related party
transaction" as defined under Multilateral Instrument 61-101 ("MI 61-101"). The
transaction will be exempt from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fair market value of any
securities to be issued to, nor the consideration to be paid by, such persons
exceeds 25% of FSI's market capitalization calculated as of the close of trading
on the TSX Venture Exchange at the time the private placement was agreed to
(i.e., June 29, 2012).


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.


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. 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 delays or
uncertainties with regulatory approvals, including that of the TSX Venture
Exchange, changes in the business environment that might impact the intended use
of proceeds and terms of the financing and changes in the intention of the
parties to subscribe to the private placement. 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.