Victory Energy Operations, LLC Has Completed a Majority Recapitalization with Saw Mill Capital LLC

HOUSTON, November 29, 2012 – GulfStar Group (“GulfStar”) is pleased to announce the majority recapitalization of Victory Energy Operations, LLC (“Victory” or the “Company”) to Saw Mill Capital LLC (“Saw Mill”). GulfStar served as Victory’s exclusive financial advisor and, through its merchant banking affiliate, invested in the transaction, which closed on November 14, 2012.

Victory designs, engineers, manufactures and services boilers, fired packaged boilers, waste heat boilers, and heat recovery steam generators and related equipment utilized in a variety of end markets, including power generation, bio-renewable, oil sands, petrochemical, district heating, education and healthcare. The Company manufactures from its two locations in Collinsville and Cushing, Okla., and serves customers primarily in North America. Founder and CEO, John Viskup will remain a significant shareholder and continue to run the Company.

“I am grateful for GulfStar’s guidance and insight throughout this process,” said Viskup. “GulfStar was able to identify Saw Mill as a strategic partner and investor without running a process that exposed the Company to the market. I believe Saw Mill’s impressive prior investment experience in our industry and the addition of fresh capital enhances Victory’s ability to continue our growth.”

The GulfStar team included Managing Director Colt Luedde and Associate Jay Stone. “We have been very impressed with John and what he and his team have accomplished at Victory,” said Luedde. “We believe that Saw Mill’s experience as the prior owners of Global Power Equipment Group (“Global Power”) makes them a terrific partner for Victory as it continues to expand into different end-use markets and internationally. As part of this transaction, Larry Edwards, the former CEO of Global Power, has joined Victory’s Board of Directors and has agreed to assist with business development and international expansion activities.”

About Saw Mill

Based in Briarcliff Manor, NY, Saw Mill Capital LLC is an operations-oriented private equity firm focused on acquiring businesses with $40-150 million in revenues that can be meaningfully grown organically and through acquisitions. Saw Mill Capital partners with senior leadership teams to make control investments in businesses headquartered in North America.

About GulfStar Group

GulfStar is a leading middle market investment and merchant bank headquartered in Houston. GulfStar specializes in providing merger and acquisition advisory services, institutional private placements of equity and debt, and general corporate finance advisory services to companies with revenues or enterprise values generally ranging from $25 million to $350 million. Since its formation in 1990, GulfStar has completed over 575 transactions in more than 30 states and seven foreign countries across a variety of industries. Through its merchant banking affiliate, the firm also makes equity and subordinated debt co-investments.

Securities offered through GulfStar Group I, Ltd. an affiliated entity, member FINRA – SIPC.