CALGARY, ALBERTA--(Marketwire - Nov. 15, 2012) - Arrowhead Water Products Ltd. (TSX VENTURE:AWA) ("Arrowhead" or the "Company") advises that the Company has entered into a Letter of Intent and a Right of First Refusal Agreement with a private third party purchaser (the "Purchaser") to sell substantially all of the assets of the Company (the "Transaction"). The Purchaser tendered an option payment of $250,000 to the Company and has until January 11, 2013 to exercise its option to purchase the assets. If the Purchaser exercises the option, it shall pay an aggregate of $1,650,000 for the assets, which payments include the option payment and three additional payments aggregating $1,400,000 of which $433,300 shall be paid in February, 2013 upon the approval of the Transaction, $433,300 in June, 2013 and $533,400 in January, 2014. The officers and directors of Arrowhead have entered into Lock-up Agreements to support the Transaction which is also subject to approval of the shareholders of the Company and TSX Venture Exchange and regulatory approvals. The Company plans to hold an Annual and Special Meeting in February, 2013.

Arrowhead also advises that all 15-litre water bottling operations have been outsourced to an experienced third party industry partner with operations in Calgary. Arrowhead will continue to deliver its premium bottles of natural spring and reverse osmosis water to the Western Canadian retail and wholesale market. Arrowhead is the only bottled water company in Alberta currently engaged in the production, sale and distribution of the new one way, environmentally friendly, bisphenol A free, 15-litre water bottle.

READER ADVISORY

This news release may contain certain forward-looking statements, including management's assessment of future plans, acquisitions and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, risks associated with bottling of water, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. The Company's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward- looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

14,492,229 Common Shares Issued

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