Red Deer, Canada – March 11, 2011 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) announces that it will enter into loan agreements with certain directors and officers of the Corporation (each a “Borrower” and collectively, the “Borrowers”) whereby the Borrowers will receive loans from Corporation (each a “Loan” and collectively, the “Loans”) in the total aggregate amount of up to $1,110,398. The purpose of the Loans is to assist the Borrowers with the payment of Canadian income taxes payable by the Borrowers as a result of the issuance to the Borrowers of Common Shares of the Corporation (“Incentive Shares”) pursuant to the Corporation’s executive and director share incentive plan (the “Plan”). The amount of each Loan will be a maximum of 50% of the estimated amount of such taxes payable by the Borrower. The participants of the Plan are subject to taxation immediately upon issuance of the Incentive Shares despite the shares being held by a trustee as part of a three year vesting arrangement under the Plan.
