Alanco Comments on Schedule 13D Filing

  Alanco Comments on Schedule 13D Filing

Business Wire

SCOTTSDALE, Ariz. -- May 20, 2014

Alanco Technologies, Inc. (OTCBB: ALAN) commented today on the May 19, 2014,
filing of a Schedule 13D by Iroquois Capital Management, LLC (together with
its affiliates) (“Iroquois”), which states Iroquois owns 474,398 shares or
9.6% of Alanco’s common stock. Based upon the Schedule 13D filed, the
Reporting Persons purchased the shares based upon their belief that the
shares, when purchased, were undervalued and represented an attractive
investment opportunity.

Alanco President and Chief Executive Officer John A. Carlson said, “Alanco has
a demonstrated practice of maintaining an open dialog with the Company’s
shareholders, including Iroquois, and we welcome the input of all
shareholders. Our Board of Directors and executive management regularly review
the Company strategic priorities and the full spectrum of available options
and are always open to receiving constructive input toward our shared goal of
increasing long-term value for all of the Company’s stakeholders.

“We continue to have confidence in the Company’s strategic plan to develop,
through Alanco Energy Services, Inc., (“AES”), a wholly owned subsidiary, our
Deer Creek and Indian Mesa assets. Deer Creek is a produced water disposal
facility, located on 22 acres near Grand Junction, CO, with a 300,000 barrel
annual capacity that has been operational since late 2012; and Indian Mesa, a
160 acre site, located approximately 4 miles Northwest of the Deer Creek
facility, being developed into an 80 acre, 12 pond produced water disposal
facility with annual capacity of approximately 750,000 barrels and an 80 acre,
3 million cubic yard capacity landfill for disposal of solid oil and gas waste
(O&G), such as drill cuttings, tank bottoms, sock filters, etc. Significantly,
the County Use Permit approval for the entire 160 acres also allows for the
disposal of Naturally-Occurring Radioactive Material (NORM) and Technically
Enhanced Naturally-Occurring Radioactive Material (TENORM) contaminated O&G
wastes, including solids and produced water. The Indian Mesa site is still in
the permitting phase and is not expected to be operational until early 2015.

“The State of Colorado is in the forefront of recent activity to develop new
regulations for permanent disposal of NORM contaminated waste products, most
particularly O&G waste materials due to volume and projected growth. We
believe that new, more restrictive NORM regulations will be imposed on
Colorado oil and gas producers within 12-18 months, which will result in a
multi-million dollar market opportunity for approved, logistically attractive
NORM O&G disposal facilities. Currently, the only disposal site in the State
of Colorado permitted to receive NORM waste is Clean Harbor’s Deer Trail
facility in Eastern Colorado. Indian Mesa is anticipated to be the first 'one
stop shop' NORM O&G disposal facility in Western Colorado serving Piceance
Basin producers, and poised to provide exceptional future value to both
potential customers and AES.”

EXCEPT FOR HISTORICAL INFORMATION, THE STATEMENTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS MADE PURSUANT TO THE SAFE HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. ALL SUCH
FORWARD-LOOKING STATEMENTS ARE SUBJECT TO, AND ARE QUALIFIED BY, RISKS AND
UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE
EXPRESSED OR IMPLIED BY THOSE STATEMENTS. THESE RISKS AND UNCERTAINTIES
INCLUDE, BUT ARE NOT LIMITED TO, REDUCED DEMAND FOR OUR PRODUCTS; COMPETITIVE
PRICING AND DIFFICULTY MANAGING PRODUCT COSTS; DEVELOPMENT OF NEW
TECHNOLOGIES; RAPID INDUSTRY CHANGES; FAILURE OF AN ACQUIRED BUSINESS TO
FURTHER THE COMPANY’S STRATEGIES; THE ABILITY TO MAINTAIN SATISFACTORY
RELATIONSHIPS WITH LENDERS AND REMAIN IN COMPLIANCE WITH FINANCIAL COVENANTS
AND OTHER REQUIREMENTS UNDER CURRENT BANKING AGREEMENTS; AND MARKET RISK
ASSOCIATED WITH HOLDING ORBCOMM STOCK.

Contact:

Alanco Technologies, Inc.
John Carlson, 480-505-4869
 
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