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2015 Highlights

• The Company opened the Gordondale 1B waste water facility in August 2015.

• Received volumes for the 2015 year were a record high of 437,000 m3, an increase of 17,000 m3 (4%) over 2014 and an increase of 277,000 m3 (173%) over 2013. The overall volume increase is a result of the incremental contribution by the Gordondale facility and year over year increases at Chamberlain and Kinsella, somewhat offset by decreased volumes at both the Silver Valley and Central Alberta facilities.

• The Company's growth strategy to expand capabilities at existing facilities and to build new, scalable facilities in targeted markets drove revenue to a record $7,763 thousand, an increase of $984 thousand (15%) compared to 2014 and an increase of $4,731 (156%) compared to 2013. The Company expanded services at the Chamberlain facility in November 2014 to a 1B facility, and 2015 saw a full year of 1B volumes resulting in additional revenue. Completion of the Gordondale waste water facility as a sister plant to Silver Valley allows for increased receipts of Class II product than Silver Valley alone as well as incremental 1B waste streams, which contributed to the overall increase in revenue. Higher revenue from increasing volumes was offset by lower revenue received for recovered oil due to lower benchmark oil prices in 2015 compared to 2014.

• Adjusted EBITDA increased by $706 thousand (79%) to $1,596 thousand in 2015 compared to $890 thousand in 2014, marking the Company's second consecutive year of positive Adjusted EBITDA. This increase is attributable to reduced general and administrative expenses and the introduction of higher margin services.

• Achieved the first full year of positive cash flow from operations of $628 thousand.

• Incurred approximately $7.6 million of capital expenditures to complete the Gordondale 1B waste water facility, continue construction on the Athabasca facility and to complete the drilling of a well for the Kaybob facility.

• Ended the year with approximately $7.9 million in cash and cash equivalents.

• Entered into a $15 million credit facility with ATB to provide greater flexibility for working capital requirements and future growth.

2015 Q4 Financial and Operating Results

• Total volume received for 2015 Q4 was 117,000 m3, a decrease of 3% compared to 121,000 m3 received in 2014 Q4. The decrease was attributable to lower volumes received at the Silver Valley and Central Alberta facilities offset by increased volumes at the Chamberlain facility and Gordondale facility.

• The Company achieved record quarterly revenues for 2015 Q4 of $2,182 thousand, an increase of $346 thousand (19%) compared to 2014 Q4. Increased revenue is the result of incremental 1B volumes received at both the Chamberlain and Gordondale facilities offset by decreased recovered oil and custom treating revenues.

• Adjusted EBITDA for 2015 Q4 was $548 thousand compared to $62 thousand for 2014 Q4, an increase of $486 thousand (784%). The increase in Adjusted EBITDA is a result of a higher gross margin and lower general and administrative expenses.

Balance sheet highlights

• Ceiba ended 2015 with $7.9 million in cash and cash equivalents and $7.1 million of positive net working capital (excluding the current portion of convertible debentures).

• At the end of 2015, $5.0 million of the $15.0 million ATB credit facility was available to draw with zero bank debt outstanding.

• On March 7, 2016 Ceiba entered into an extended and amended credit facility with ATB that results in $10.0 million of available credit being available to draw, allowing the Company the financial flexibility to repay all of its convertible debentures when they mature with lower cost bank debt.

FUTURE PLANS AND OUTLOOK

Demand for services at Ceiba's facilities is tied to the levels of drilling and production in the geographical regions where the Company operates. The current environment of lower commodity pricing continues to provide short-term uncertainty. Ceiba plans to continue to execute a strategy of measured investment into services and locations where waste fluid and water disposal demand remains relatively strong and where industry recovery is expected to be greatest when commodity pricing improves.

In the face of the current commodity price environment, which is producing headwinds for the Company and the industry in general, Ceiba is actively pursuing operational and investment activities that further the Company's long term strategic goals. Throughout 2015, Ceiba has seen a change in its product mix and in recent months has experienced more localized pricing pressures. Ceiba's strategies to continue growth plans include working closely with current and potential new customers to reduce their overall fluid disposal costs, continued operational excellence at its facilities to protect gross margins and investment in new facilities to meet localized demand.

Management has continued to address costs by adjusting its work force in-line with current activity levels. This has resulted in decreasing staffing levels in general and administrative levels and areas of lower activities and hiring of new staff for new facilities. Management has implemented a 10% salary reduction to officers and all full-time senior staff members.

Ceiba intends to maintain a conservative balance sheet in the current low commodity price environment. Ceiba is well capitalized to complete the development of its Athabasca waste fluid disposal facility. Ceiba intends to repay or refinance its $7.3 million face value of 12% convertible debentures due on July 31, 2016 with cash and lower interest rate debt which may include amounts available under its bank credit facility. The development of future facilities will be subject to analysis of expected returns meeting the Company's rate of return targets and availability of appropriate financing.

The Gordondale facility, which opened in August 2015, adds approximately 120,000 m3 per year of disposal capacity to the Company. The site's proximity to Silver Valley increases operating flexibility to reduce customer wait times and will contribute to Ceiba's goal of increasing total received volume year-over-year with a focus on higher margin waste fluids.

The Company is currently constructing its Athabasca waste fluid facility, which is scheduled to open early in the second quarter of 2016. Ceiba is well capitalized to complete the Athabasca facility with additional available liquidity to pursue development of future facilities and assess potential accretive acquisitions that are consistent with the Company's long-term strategy. The Company continues activities to acquire suitable locations for new facilities in under serviced or constrained markets.

In Q4 2015, Ceiba completed drilling and completion activities for a new disposal well in the Kaybob region consistent with the plan to open a new waste water facility in this active market area by early 2017.

In early Q4 2015, Ceiba acquired a Class II disposal well for a nominal amount in the Obed area from an oil and gas producer. Ceiba opened the disposal facility in late February 2016 to receive Class II fluids from third parties.

In early 2016, Ceiba temporarily stopped its blending operations at its Kinsella facility due to a lack of suitable heavy oil feedstock. Ceiba is actively looking for new feedstock and considering other alternatives for this non-core asset. While Kinsella contributed approximately 25% of the Company's 2015 received volumes, it had a minimal impact to the Company's gross margins due to the nature of its blending operations and our profit sharing arrangement with our marketing partner at the facility.

Ceiba continues to assess and evaluate acquisition opportunities that are both complimentary to the existing asset base and are accretive to the five-year business plan.

Management expects that Ceiba's current and future facilities are located in attractive areas and provide a diverse set of services, which will insulate the Company from reduced demand for our services in the face of current oil prices that have dropped approximately 2/3 from 2014 peaks. The weakening of the Canadian dollar relative to the US Dollar has reduced the impact of a drop in global and North American oil prices for Canadian producers. However, uncertainty in oil, gas and natural gas liquids pricing may influence capital spending decisions relating to production and ultimately demand for the Company's services. and has resulted in lower revenue for the Company's recovered oil. Management will continue to monitor producer activity levels in Western Canada in general and around our current and planned facilities in particular with a view of reducing financial risk from further drops in the price of oil and natural gas.

ATB CREDIT FACILITY

On March 7, 2016, the Company entered into an amended $15 million credit facility commitment letter with ATB consisting of a $5 million revolving facility and a $10 million term credit facility available in two tranches. The revolving facility has an interest rate of prime plus 175 basis points per annum and a stand-by fee of 40 basis points per annum. The revolving facility is due on demand with no set maturity date. A $5 million term credit facility is immediately available and an additional $5 million term facility is available when Ceiba achieves adjusted EBITDA in the last twelve months of $4 million. The first $5 million term credit facility has an interest rate of prime plus 300 basis points per annum until adjusted EBITDA in the last twelve months reaches $2 million and drops to 200 basis points per annum thereafter. There is a stand-by fee of 40 basis points per annum on the amount available. The first $5 million term credit facility provides for monthly principle and interest payments starting six months from the date of the agreement amortized over an eight-year period. The second $5 million term credit facility provides for monthly principle and interest payments starting three months after the first draw amortized over an eight-year period. The first term credit facility is available to draw until September 7, 2016 and the second $5 million term credit facility is available to draw until May 31, 2017.

ANNUAL GENERAL AND SPECIAL MEETING

The Company's annual general and special meeting has been scheduled for May 17, 2016 at 10:00 a.m. Calgary time at the Eau Claire Place II conference room, second floor, 521 - 3rd Avenue S.W., Calgary, Alberta, T2P 3T3.

NON-GAAP MEASURES AND OPERATIONAL DEFINITIONS

Certain supplementary measures in this MD&A do not have any standardized meaning as prescribed under GAAP and, therefore, are considered non-GAAP measures. These measures are described and presented in order to provide information regarding the Company's financial results, liquidity and its ability to generate funds to finance its operations. These measures are identified and presented, where appropriate, together with reconciliations to the equivalent GAAP measure. However, they should not be used as an alternative to GAAP measures because they may not be consistent with calculations of other companies. These non-GAAP measures, and certain operational definitions used by the Company, are further explained below.

Gross Margin and Gross Margin %

Gross margin is calculated as revenue less operating expenses which includes direct product costs for services but excludes depreciation, depletion and amortization and general and administrative expenses. Management analyzes gross margin as a key indicator of cost control and operating efficiency. Gross margin % is calculated as gross margin as a percentage of revenue.

EBITDA and Adjusted EBITDA

EBITDA refers to net income before finance costs, taxes, depreciation and amortization. Adjusted EBITDA is calculated as EBITDA before costs associated with non-recurring business acquisition costs and share based-compensation. These measures do not have standardized definition prescribed by IFRS and therefore may not be comparable to similar captioned terms presented by other users.

Management believes that EBITDA and Adjusted EBITDA are key indicators for the results generated by the Company's core business activities as they eliminate non-recurring items, certain non-cash items and the impact of finance and tax structure variables that exist between entities.

Net Working Capital

Net Working Capital is calculated as total current assets less total current liabilities. Management analyzes net working capital as a measure of our ability to settle short term liabilities with currently available assets.

About Ceiba Energy Services Inc.

Ceiba provides specialized services to the energy sector, specifically to companies involved in the exploration, extraction and production of oil and natural gas in Western Canada. Ceiba develops and constructs facilities in proximity to its customers to provide treatment of crude oil emulsion, terminalling, storage and marketing of oil and disposal of production water.

Reader Advisory

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or the accuracy of this release.

Forward-looking statements

Certain information regarding Ceiba in this news release, including management's assessment of its future development plans and access to various external sources of capital, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with facility construction and oilfield services operations, general risks associated with oil and gas exploration, development, production, marketing and disposal of waste, loss of markets, environmental risks, competition from other service providers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward‐looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Ceiba's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward‐looking statements or information contained in this news release are made as of the date hereof and Ceiba does not undertake any obligation to update publicly or revise any forward‐looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.