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International Wastewater Closes First Tranche of Debenture Unit Offering

International Wastewater Closes First Tranche of Debenture Unit Offering

International Wastewater Closes First Tranche of Debenture Unit Offering

VANCOUVER, B.C., May 30, 2017 – International Wastewater Systems Inc. (“IWS” or the “Company”) (CSE: IWS; FSE: IWI; OTC: INTWF) is pleased to announce, further to its news release dated May 29, 2017, that it has closed the first tranche of the Company’s non-brokered private placement (the “Placement”) of debenture units (the “Debenture Units”).

Pursuant to the first tranche of the Placement, the Company issued 1,320 Debenture Units at a price of $1,000 per Debenture Unit for gross proceeds of $1,320,000. Each Debenture Unit consists of one $1,000 principal amount senior unsecured convertible debenture (the “Debenture”) and 2,500 share purchase warrants (each a “Warrant”), each exercisable into one common share of the Company (the “Shares”) at $0.30 per Share until May 30, 2020. The Debentures bear interest at a rate of 12% per annum from May 30, 2017 and will mature on May 30, 2020 (the “Maturity Date”). The Debentures are convertible into Shares at $0.30 per Share at the option of the holder at any time until the Maturity Date, subject to adjustment in certain events.

The Company paid finder’s fees in the amount of $92,400 to Leede Jones Gable Inc. (the “Finder”) in consideration for introducing certain purchasers to the Company. The Company also issued to the Finder 231,000 non-transferable share purchase warrants (the “Finder’s Warrants”). Each Finder’s Warrant entitles the holder to purchase one Share at a price of $0.40 per Share until May 30, 2019.

All securities issued in connection with the first tranche of the Placement are subject to a statutory hold period expiring on October 1, 2017 in accordance with applicable securities legislation.

About International Wastewater Systems Inc.

International Wastewater Systems Inc. is a world leader in thermal heat recovery. IWS systems recycle thermal energy from wastewater, generating the most energy efficient and economical systems for heating, cooling & hot water for commercial, residential and industrial buildings. IWS is publicly traded in Canada (CSE: IWS), the United States (OTC:INTWF) and Germany (Frankfurt: IWI).

ON BEHALF OF THE BOARD

“Lynn Mueller”

Lynn Mueller

Chairman and Chief Executive Officer

FOR MORE INFORMATION, PLEASE CONTACT:

Jason Shepherd,

Telephone: 604-475-7710

Email: info@iwhes.com

The CSE does not accept responsibility for the adequacy or accuracy of this release.