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Isowater and AECL Sign Deuterium Oxide (Heavy Water) Marketing and Collaboration Agreement

OTTAWA, ONTARIO -- (Marketwired) -- 02/28/14 -- Editors Note: There is a photo associated with this press release.

Isowater Corporation (Isowater) and Atomic Energy of Canada Limited (AECL) are pleased to announce the signing of an agreement to advance deuterium oxide (heavy water) technology and sales. The two firms have been collaborating since 2009 demonstrating deuterium oxide technology and selling deuterium oxide to the growing number of users in the high tech, life science and environmental sectors. This agreement marks a major milestone in their efforts.

The agreement enables Isowater to market and sell existing deuterium oxide inventories to certain non- nuclear markets, while advancing new technologies designed to recycle and upgrade deuterium oxide. This upgrading of deuterium oxide will be accomplished using a refinery system developed in collaboration with AECL. In the longer term, Isowater will be developing new primary heavy water production systems to ensure availability of high quality virgin deuterium oxide as world supplies continue to dwindle.

Andrew Stuart, President & CEO of Isowater Corporation, states, "This agreement marks an additional milestone towards Isowater Corporation's goal of being a market driven leader in the field of deuterium- based products. With the signing of this agreement we have sufficient inventory available to meet the needs of the growing non-nuclear markets for deuterium oxide. We are very excited about our developing ability to stabilize the supply side of this very important material and support the scientific research that depends on it. In time, we can scale our production to meet the needs of heavy water moderated reactors."

"The arrangements between Isowater and AECL are an example of how AECL expertise in combination with private sector innovation can expand jobs and growth in Canada" said Robert Walker, President & CEO of Atomic Energy of Canada Limited. "This collaboration with Isowater bridges technology, which was developed for nuclear markets, into life science and high tech markets. AECL's Nuclear Laboratories is Canada's premier nuclear science and technology organization. This agreement is an example of how our knowledge and technology can serve the nation as an enabler of business innovation."

About Isowater

Isowater Corporation is a Canadian company that provides a reliable supply of hydrogen isotopes to global markets. Our products are deuterium oxide (heavy water) and deuterium gas systems in the quantity and concentration needed for applications in Life Science and High Tech markets including: Pharmaceutical, Diagnostics, Hydrology, Fiber Optics, Semi Conductors and Analytical Research Applications. Isowater can supply the needs of customers for deuterium oxide today while at the same time develop the supply chain solutions for lowering the customer's deuterium oxide cost through

recycling as well as ensure stable supply as the many high growth users increase their demands from small to very large quantities over time.

About AECL

AECL's Nuclear Laboratories is Canada's premier nuclear science and technology organization. For 60 years, AECL has been a world leader in developing peaceful and innovative applications from nuclear technology through its expertise in physics, metallurgy, chemistry, biology and engineering. Over 3,000 highly skilled employees deliver a range of nuclear services - ranging from research and development, design and engineering to specialized technology, waste management and decommissioning.

Today, AECL continues its commitment to ensure that Canadians and the world receive energy, health, environmental and economic benefits from nuclear science and technology with confidence that nuclear safety and security are assured.

To view the photo associated with this press release, please visit the following link: http://www.marketwire.com/library/20140227-ISOimageLG.jpg.

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