SMG Indium Resources Acquires Texas Oilfield Services Company

SMG Indium Resources Acquires Texas Oilfield Services Company

Permian Basin is the focus of MG Cleaners’ growth plans

NEW YORK and HOUSTON, Sept. 19, 2017 (GLOBE NEWSWIRE) -- SMG Indium Resources
Ltd. (the "Company" or "SMG") (OTCPK:SMGI), today announced that it has
acquired 100% of the membership interests of MG Cleaners LLC, an oilfield
services company headquartered in Houston, Texas, founded in 2005.

SMG’s original business plans came to fruition in 2014 through the sale of its
stockpile of indium assets. Thereafter, SMG returned most of that capital to
its shareholders via special dividends and stock buy backs. Today, SMG’s
remaining cash and its status as a fully reporting public company provides MG
Cleaners access to the public markets by being acquired by SMG which should
further help to drive its growth plans organically or through possible
additional acquisitions.

Acquisition strategy supported by:

  o Established oilfield services company with proprietary branded products
    for soaps, surfactants and degreasers, including Miracle Blue™,
  o Market & Markets independent research firm expects surfactants market to
    be almost $40 billion by 2021,
  o Company management team with MG has over 50 years cumulative experience
    serving oilfield,
  o 2016 audited financials include revenues of $1.6 million and $178 thousand
    net income,
  o 2017 six months unaudited revenues of $1.18 million, up 68% from the six
    month period ending June 2016, and $70 thousand in net income,
  o Significant growth potential from West Texas Permian Basin expansion,
  o Broad customer base including industry leaders, and,
  o Additional acquisitions sought.

Headquartered in Houston, Texas, with offices in Carthage (East Texas) and
Midland (West Texas), MG Cleaners LLC (“MG”) is an oilfield services company
that operates throughout Texas. MG’s focus is selling proprietary branded
products including soaps, surfactants and degreasers, such as Miracle Blue™,
to oilfield drilling rig contractors and oilfield companies. In addition to
MG’s proprietary products, the company sells equipment and parts, and has
service crews that perform repairs, maintenance and drilling rig wash services
for customers such as Nabors Industries, Patterson-UTI, H&P, Cactus Drilling
and others.

Matthew Flemming, the Chief Executive Officer of SMG stated, “MG Cleaners
believes its growth will accelerate from the capital provided with this
acquisition by increasing West Texas inventory and adding service crews,
addressing current demand. Management at MG will remain in place to execute
the plan incentivized for growth.  MG’s focus on the drilling rig side of the
business may allow the Company to add additional products that fit our current
customer needs. While MG sells its branded products throughout Texas and other
domestic oilfield areas, the first goal is to further grow our Permian Basin
and Delaware Basin customer base with direct sales. To support our organic
growth plans, the Company may also look for additional acquisitions to
leverage our customer base and sales channels. However, there can be no
assurances of any future acquisitions, and if completed, that they will be of
value to the business.”

Ailon Grushkin, SMG’s former Chief Executive Officer who resigned in
connection with the acquisition’s closing, stated, “As previously reported
within the Company’s Quarterly Reports on Form 10-Q, SMG has been reviewing
its strategic alternatives. SMG was pleased to identify an acquisition such as
MG.  We believe MG’s management team, longevity in business, branded product
lines, and reference customers will be a good combination with SMG.”

The following are MG Cleaners selected financial highlights.

 Selected Financial Results                                          
                               Six Months Ended   Year Ended         
                               June 30, 2017      December 31, 2016  
Revenues                       $1.18 million      $1.60 million      
Gross Profit                   $462,940           $663,615           
Gross Margin                   39.2%              41.4%              
Income from Operations         $123,371           $219,647           
Adjusted EBITDA^1              $259,478           $332,981           
Net Income                     $70,209            $178,015           

^1 A reconciliation table of the Adjusted EBITDA is provided below

Shareholders are requested to read the Current Report on Form 8-k filed with
the SEC on or about September 19, 2017, which includes exhibits attached of MG
Cleaners Audited Financial Statements for the year ended 2015 and 2016, the
unaudited six month results ended June 30, 2016 and 2017, pro forma financial
information, risk factors, management discussion and analysis, business
description and other disclosures.

Stephen Christian, MG Cleaners President stated, “We have major expansion
plans and organic growth for the Company in the Permian and Delaware basins of
West Texas. Having recently hired key strategic employees from West Texas, we
are now complementing our legacy sales through distributors and suppliers with
a direct sales approach. Regarding industry activity levels, at present, the
domestic US Rig Count, as measured by Baker Hughes, stands at 936, an increase
of 131% from the May 2016 lows. MG’s competition is highly fragmented, usually
owner/operator businesses that do not offer the full suite of products and
services MG provides its customers. Because of favorable industry economics,
approximately 49% of the rigs operating in the domestic United States are
concentrated in Texas which allows more efficient distribution of the
Company’s products.”

SMG issued 4,578,276 shares for the acquisition of MG, and currently its total
shares outstanding, post-acquisition, are 6,672,845. There are options to
purchase 375,000 shares at an average exercise price of $.72 and no warrants
presently outstanding. 

About SMG Indium Resources Ltd.

SMG Indium Resources Ltd. was formed under the laws of the State of Delaware
on January 7, 2008. Since inception, SMG’s primary business purpose has been
to stockpile indium, a specialty metal that is being increasingly used as a
raw material in a wide variety of consumer electronics manufacturing
applications. In December 2013, our Board of Directors authorized management
to sell our entire stockpile in 2014 based on prevailing market conditions.
SMG sold all of the indium held by December 31, 2014. After determining and
evaluating its strategic options, the Board of Directors concluded that the
acquisition (reverse acquisition) of MG Cleaners, a Texas based oilfield
services company, is a good strategy and that our stockholders will have an
opportunity to participate with the future oilfield and MG business.  SMG’s
sole operations are currently those of its wholly-owned subsidiary MG Cleaners

About MG Cleaners LLC

MG Cleaners  is a  growth-oriented  oilfield service  company focused  on  the 
drilling rig operator market segment in the domestic United States pursuant to
which we offer the following products and services: (i) product sales such  as 
Miracle Blue™, Luma Brite™ and Wicked Green™ for the oilfield industry used in
drilling rig wash, oilfield cleaning, industrial cleaning, fleet and equipment
cleaning; (ii) equipment sales for the oilfield industry including, industrial
pressure washers;  (iii) parts  sales  for our  installed base  on  equipment, 
including water  guns, hoses  and fittings,  and (iv)  service crews  for  the 
oilfield industry related to rig wash and repairing drilling rigs on location.
MG Cleaners was  organized as a  limited liability company  in Texas in  2005. 

Forward-Looking Statements
This press release may contain certain statements of a forward-looking nature.
Such statements are made pursuant to the "forward-looking statements" and
"safe harbor" provisions within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange of 1934,
as amended. The statements contained herein which are not historical facts are
considered forward-looking statements under federal securities laws. Such
forward-looking statements are based on the beliefs of our management as well
as assumptions made by and information currently available to them. The
Company has no obligation to update such forward-looking statements. Actual
results may vary significantly from these forward-looking statements.

Source: SMG Indium Resources Ltd.
Contact: Matthew Flemming, CEO 713-821-3153

^1Adjusted EBITDA Reconciliation Table

The following is a reconciliation of income from continuing operations
attributable to the Company as presented in accordance with United States
generally accepted accounting principles (GAAP) to adjusted EBITDA.

MG Cleaners, LLC
Adjusted EBITDA Reconciliation Table
For the six months ended June 30, 2017 and year ended December 31, 2016
                         Six Months Ended       Year Ended
                         June 30, 2017          December 31, 2016
Net income               $  70,209              $  178,015
Add back:                                        
Interest expense                  53,162                  52,603
Depreciation                      38,199                  77,458
Impairment expense                -                       24,905
One-time non-op items             97,908                  -
EBITDA                   $  259,478             $  332,981
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