Formation Fluid Announces Resolution of Issue With Maple Leaf

Formation Fluid Management Inc. ("Formation Fluid" or "the Company") (TSX
VENTURE:FFM) is pleased to announce that it has entered into a settlement
agreement and mutual release with Maple Leaf Development Corporation ("Maple
Leaf") with respect to the assertions made by Maple Leaf as announced by the
Company in its press releases dated April 20 and July 18, 2012. In entering into
the settlement agreement, the Company has not admitted any liability to Maple
Leaf.


In consideration for relinquishing any and all claims relating to the dispute,
the Company and Maple Leaf have as part of the settlement entered into an
agreement that amends the terms of a license agreement between the Company and
Maple Leaf. The amending agreement converts the license granted by Maple Leaf
from an exclusive license to a non-exclusive license, removes the obligation of
the Company to provide Maple Leaf with the opportunity to be the sole
manufacturer of the Company's mobile-produced water processing plants, and
provides for the return of the initial, small scale pilot plant constructed by
Maple Leaf. Under the license agreement, Maple Leaf has licensed to the Company
any technology developed by Maple Leaf in respect of mobile produced water
processing plants. 


As part of the settlement agreement, Ken Rose and Gilbert Tkachuk have agreed to
purchase all 4.67 million common shares of the Company held by Maple Leaf,
subject to the receipt of all required approvals. 


About Formation Fluids

Formation Fluid Technology has developed a waste water treatment plant that uses
a proprietary process to clean waste water. The system is mobile and can be
scaled to process required volumes. 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. Formation Fluids is seeking to service a significantly
underdeveloped segment within the oil and gas industry; its waste water
treatment system is intended to cost effectively deal with produced water while
satisfying the need to reuse and recycle an increasing valuable resource. For
more information, please visit: www.formationfluid.com or contact Investor
Relations at [phone]. 


On behalf of the Board of Directors.

Ken Rose, Chief Executive Officer

FORWARD LOOKING INFORMATION

Certain information in this news release is forward-looking within the meaning
of certain securities laws, and is subject to important risks, uncertainties and
assumptions. This forward-looking information includes, among other things,
information with respect to the Company's beliefs, plans, expectations,
anticipations, estimates and intentions. The words "may", "could", "should",
"would", "suspect", "outlook", "believe", "anticipate", "estimate", "expect",
"intend", "plan", "target" and similar words and expressions are used to
identify forward-looking information. The forward-looking information in this
news release describes the Company's expectations as of the date of this news
release.


The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events. Material
factors which could cause actual results or events to differ materially from
such forward-looking information include, among others, risks arising from
reliance on contractual rights, reliance on key personnel and insurance or lack
thereof.


The Company cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking information to make
decisions, investors and others should carefully consider the foregoing factors
and other uncertainties and potential events. The Company has assumed a certain
progression, which may not be realized. It has also assumed that the material
factors referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or events.
However, the list of these factors is not exhaustive and is subject to change
and there can be no assurance that such assumptions will reflect the actual
outcome of such items or factors.


THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS THE
EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS NEWS RELEASE AND,
ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE
UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS
INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT
UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME.