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ESPI Revenues Increase 136% for Qtr Ended 03/31/2012...

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ESP Resources, Inc. Reports First Quarter 2012 Results; Revenue Increases 136%

ESP Resources, Inc. (OTCBB:ESPI) (the "Company" or "ESP Resources"), an oil and gas services company, today announced the Company's unaudited financial results for the three months ended March 31, 2012.

Mr. David Dugas, President of ESP Resources, Inc., commented, "Benefiting from steady market demand and increased sales, specifically coming from our hydraulic fracturing customers, we saw exceptional growth in the first quarter of the year, up 136% as compared to the previous year ago quarter. In addition to more than doubling our sales volume, we boosted margins as a result of a decrease in costs as compared to the year ago period; however, due to our increases in sales of completion petrochemicals and services to customers in the hydraulic fracturing business, our margins fell 4% from December 31, 2011 levels."

Mr. Dugas continued, "Now in the second quarter of 2012, our team is focused on expansion, which will be seen in our revenue stream, domestic and international customer base, geographic location and our portfolio of services offered. We will be announcing new agreements in the international arena demonstrating our abilities in expanding our capabilities and services available to our current and future customers. We fully intend to pursue these opportunities and other lucrative revenue opportunities made available to us now and in the future."

Three Months Ended March 31, 2012

Revenues were $4,289,985, as compared to $1,815,156 for the three months ended March 31, 2011, an increase of $2,474,829, or 136%. The increase was mainly due to increased sales volume from petrochemical sales and services to customers engaged in the hydraulic fracturing of oil and gas wells as well as increased sales of production petrochemicals in the Southern Louisiana, South Texas, Southeastern Texas and Arkansas regions. The addition of field service technicians in the South Texas and Arkansas regions in previous quarters and their sales contacts resulted in a direct increase in sales volumes from these regions.

Gross profit was $2,063,462, or 48% of net sales, for the three months ended March 31, 2012, as compared to $787,165, or 43% of net sales, for the same period in 2011. The 5% increase in gross margin for the first quarter 2012 was the result of a decrease in costs as a percentage of sales for certain petrochemical components used to service customers engaged in the hydraulic fracturing of oil and gas wells, as compared to the same period in 2011.

Net loss decreased to $(395,380) for the three months ended March 31, 2012, as compared to a net loss of $(839,464) for the same period in 2011. The primary reason for the decrease in the net loss was due to a decrease, as a percentage of sales, of general and administrative expenses relating to the expansion of our sales from our existing facilities, stock compensation expense, the cost of additional infrastructure to support higher levels of sales in future periods and development of international operations.

Modified Earnings before interest, taxes, depreciation amortization and stock-based compensation ("Modified EBITDA") are a non-GAAP financial measure. Modified EBITDA for the three months ended March 31, 2012 was $233,776 compared to $(313,222) for the same period in 2011, an increase of $546,998.

As of March 31, 2012, the Company had total assets of $7,105,903, of which $4,274,565 was current assets, and total liabilities of $6,216,957, of which $5,018,926 was current liabilities.

For more information on the Company's performance in the three months ended March 31, 2012, please refer to the corresponding Form 10-Q as filed with the Securities and Exchange Commission.

About ESP Resources, Inc.:

ESP Resources, Inc. is an oil and gas services company (OTCBB:ESPI) headquartered in Scott, LA. Through its wholly owned subsidiary, ESP Petrochemicals, Inc., the Company manufactures, blends, distributes and markets specialty chemicals and analytical services to the oil and gas industry. ESP Resources supplies retail and wholesale specialty chemicals for a variety of oil field applications including production, drilling, waste remediation, cleaning, and waste water treatment. From its blending and distribution facilities, the Company distributes its product line throughout the oil and gas producing regions of Louisiana, Texas, Mississippi, Alabama, Arkansas and Oklahoma, both onshore and offshore. The wholesale division of the Company supplies specialty chemicals to several retailers operating in West Africa. The Company's senior management has over 100 years of combined operating experience in the petrochemical industry. More information is available on the Company's Website at www.espchem.com.

Legal Notice Regarding Forward-Looking Statements:

This press release contains "forward looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and actual results could differ materially from those in such forward-looking statements.

Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release. In evaluating these statements, you should consider the risks discussed, from time to time, in the reports we file with the U.S. Securities & Exchange Commission. For a discussion of some of the risks and important factors that could affect the Company's future results and financial condition, see the Company's Form 10-Ks and 10-Qs on file with the U.S. Securities & Exchange Commission.

CONTACT: Company Contact:

David Dugas, President
ESP Resources, Inc.
[e-mail]
[phone]

Investor Relations Contact:

Howard Gostfrand, President
American Capital Ventures
[e-mail]
[phone]

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