15 January, 2013

NEW MARKET FOR WRG'S SOUTH ASIAN LICENCE

? Expansion of license to include The Republic of Mauritius

? Mauritius recently implemented a major water management reform programme incorporating legislature requiring hotels & major hospitality centres to have access to water desalination plants

? License Partner is backed by longstanding Indian agricultural entrepreneurs and multi-billion dollar investment fund, Altima Partners LLP

The Water Resources Group Ltd (ASX: WRG: US: OTC-WTRSY) Board is pleased to announce that it has agreed to expand its license relationship with Mandala Water Limited (Mandala Water) to include The Republic of Mauritius - an island nation of approximately 1.3 million people in the South West Indian Ocean. WRG recently undertook steps to move from a Joint Venture to a Licence agreement with Mandala Water which will allow WRG certain rights to participate in up to 49% of any project developed within the scope of the license and its applicable territories. This also allows for Mandala to fund early stage projects independently and without financial commitments from WRG.
The United Nations Environment Programme (UNEP.org) reports that the availability of freshwater in the region is a priority issue, due to variable rainfall and high run-off; increasing domestic, commercial, agricultural and industrial consumption; and a lack of storage capacity. Pollution from a variety of sources is contributing to restricted availability of water for human use, as well as environmental degradation. Water supplies per capita are predicted to be within water stress levels by 2025.
In April 2012, the former President of Mauritius, Monique Ohsan Bellepeau declared that a major water management reform programme was immediately being implemented, as well as a plan to meet all future needs until the Government achieves its goals of a 24/7 supply of clean water for the population. Furthermore, it was stated that the Government will legislate to ensure that all hotels and major hospitality centres will be equipped with water desalination plants.
WRG's CEO, Brian Harcourt stated "We believe that our partner, Mandala Water is well placed to secure water supply contracts in Mauritius and we look forward to significant new business arising from this region."
Additional positive news from the region includes market research & consulting firm TechSci Research's report that due to governmental support and increases in demand, the Indian water desalination market is set to register a compound annual growth rate of 22% over the next five years. Much of this growth is set to occur in the large coastline states of Tamil Nadu (720km) and Gujurat (1600km). In partnership with Mandala, WRG expects to build several demonstration scale plants in the region later this year with a view to completing equipment sales within the next 12 months.
Mandala Water is owned by Mandala Capital Ag Fund Limited, which is a private equity fund that invests in the agricultural sector in the Indian and South Asia markets. Mandala's founders and partners include longstanding Indian agriculture entrepreneurs as well as Altima Partners LLP, a multi-billion dollar investment fund with substantial investments in the agriculture sector globally.
For further information contact:

Brian Harcourt, CEO Australia: +61 423 555 885 USA: +1-916-790-1159 About Water Resources Group:

? Water Resources Group (WRG) is an Australian listed company uniquely positioned to capture high value equipment sales and long term water supply revenues.

? It markets its environmentally sustainable water treatment systems on an industrial - municipal scale to global customers.

? It's technical and manufacturing operations are at the forefront of the water treatment

industry and are based in El Dorado Hills, California, USA.

? For more information on the Company's systems or locations and view the latest video footage of our demonstration plant in El Dorado Hills, CA, please visit www.WaterResourcesGroup.com

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