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Mullen Group Ltd. Announces 2014 Business Plan and Declaration of Dividend

  Mullen Group Ltd. Announces 2014 Business Plan and Declaration of Dividend

PR Newswire

OKOTOKS, AB, Jan. 20, 2014

OKOTOKS, AB,  Jan.  20,  2014  /PRNewswire/ -  (TSX:MTL)  Mullen  Group  Ltd. 
("Mullen  Group"  and/or  the  "Corporation")  announced  today  its   capital 
expenditure plan  for  2014  as  approved  by  the  Board  of  Directors  (the 
"Board"). The Board  considered a  wide range of  economic issues,  commodity 
pricing predictions and forecasted drilling activity for the Western  Canadian 
Sedimentary Basin as well as recent developments in the anticipated build  out 
of Canada's infrastructure for LNG and crude oil. The capital budget for 2014
is set  at  $100.0  million,  with $75.0million  allocated  to  the  Oilfield 
Services  segment  and  $25.0million  allocated  to  the   Trucking/Logistics 
segment. These  funds  will be  used  to  acquire new  trucks,  trailers  and 
specialized equipment to  support the  on-going operations  of Mullen  Group's 
business units.  As  the need  arises,  the Board  will  consider  additional 
capital requests throughout the  year for special  projects, the purchase  and 
development of land, or for acquisitions.

"We expect 2014 to be another good year for the Mullen Group, although  growth 
will continue to be difficult to achieve given the current economic outlook as
well as the near term prospects for the oil and gas sector in western Canada.
However, looking to the future, growth opportunities are much brighter,  which 
is the reasoning behind the Board  approving our request for a  $100.0million 
capital budget in 2014.  Quite simply, we want  to be prepared", said  Murray 
Mullen, Chairman and Chief Executive Officer.

"The discussions surrounding LNG exports through Canada's west coast, as  well 
as crude oil pipelines and infrastructure projects are progressing and  appear 
to be constructive, although there  have been few definitive announcements  to 
date. One exception is crude by rail, with strong indications that  take-away 
capacity for crude oil from western  Canada could rise to onemillion  barrels 
per day by year-end. Our  view is that our  customers will benefit from  this 
new capacity. In addition, it is  worth noting that while two percent  annual 
GDP economic growth is not in itself  significant, we believe that there is  a 
compounding  affect  to  this  growth  that  should  ultimately  benefit   our 
Trucking/Logistics  segment.  There  is  also  another  important  reason  to 
continue investing in our 26 business units. Providing our employees with the
newest equipment ensures that they have  access to best-in-class assets and  a 
quality work environment -- prerequisites to retaining, as well as attracting,
a productive work force in this  market. Our investment of $100.0million  in 
2014 will ensure that our business  units are well positioned for the  future, 
particularly those tied to the build  out of crude oil take-away capacity  and 
the development of LNG", added Mr. Mullen.

Mullen Group also announced  today its intention to  continue its practice  of 
paying annual dividends  of $1.20 per  Common Share over  the course of  2014, 
such dividends to be paid on a monthly basis, subject to Board approval.

Mr. Mullen commented, "Rewarding our shareholders with consistent, predictable
dividends, as well as investing for  future growth, are important elements  of 
Mullen Group's  long  term Strategic  Plan.  For 2014  the  Board  considered 
various alternatives for the  anticipated free cash  flow and determined  that 
investing the incremental free  cash into our 26  business units was the  best 
use of shareholders' capital at this time."

The Board announced today that it has declared a monthly dividend of $0.10 per
Common Share payable to the holders of record of Common Shares at the close of
business on  January 31,  2014. The  dividend will  be paid  on February  17, 
2014. For Canadian resident shareholders,  this dividend is designated as  an 
"eligible dividend" for  purposes of  the enhanced dividend  tax credit  rules 
contained in the Income Tax Act (Canada) and any corresponding provincial  and 
territorial tax legislation.

This news release may contain  forward-looking statements that are subject  to 
risk factors associated with the oil and natural gas business and the  overall 
economy. Mullen Group believes that  the expectations reflected in this  news 
release  are  reasonable,  but  results  may  be  affected  by  a  variety  of 
variables. Mullen Group relies on litigation protection for "forward-looking"
statements. Mullen Group is  a company that owns  a network of  independently 
operated businesses.

Today the Mullen Group  is recognized as the  largest provider of  specialized 
transportation and related  services to the  oil and natural  gas industry  in 
western Canada and as one of  the leading suppliers of trucking and  logistics 
services in Canada  - two sectors  of the  economy in which  Mullen Group  has 
strong business relationships and industry leadership. Mullen Group  provides 
management and  financial expertise,  technology and  systems support  to  its 
independent businesses. Mullen Group is a publicly traded corporation  listed 
on the Toronto Stock Exchange under the symbol "MTL".

Additional information is available on our website at www.mullen-group.com  or 
on SEDAR at www.sedar.com.

SOURCE Mullen Group Ltd.

Contact:

Mr. Murray K. Mullen - Chairman of the Board and Chief Executive Officer
Mr. Stephen H. Lockwood - Co-Chief Executive Officer and President
Mr. P. Stephen Clark - Chief Financial Officer

121A - 31 Southridge Drive
Okotoks, Alberta, Canada T1S 2N3
Telephone: 403-995-5200
Fax: 403-995-5296
 
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