TSX-V: SNS OTCQX : SLSDF - Select Sands Corp · 2017. 4. 21. · Sands Corp. (the “Corporation”) for shareholders about the frac/silica sand industry as well as the Corporation's

CORPORATE PRESENTATION

APRIL, 2017

HIGH QUALITY SILICA SAND

TSX-V: SNS

OTCQX : SLSDF

The Economically Essential Component

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Elliott A. Mallard, PG of Kleinfelder is the qualified person as per the National Instrument 43‐101 ("NI 43-101") and has reviewed and approved the scientific and technical information contained in this Presentation

TSX-V:SNS | OTCQX: SLSDF

www.selectsandscorp.com

This corporate presentation (the “Presentation”) has been prepared by management of Select Sands Corp. (the “Corporation”) for shareholders about the frac/silica sand industry as well as the Corporation's business. This Presentation does not constitute an offer to sell to any person, or a general offer to the public of, or the general solicitation from the public of offers to subscribe or purchase, any of the Corporation's securities. The information contained in this Presentation, the presentation made to you verbally and any other information provided to you (in writing or otherwise) in connection with the Corporation and its business (the “Presentation Materials”) is subject to updating and amendment without notice which may result in material changes.The Presentation Materials are not intended to provide financial, tax, legal or accounting advice and do not purport to contain all the information that a prospective investor may require. Each prospective investor should perform and rely on its own investigation and analysis of the Corporation and the terms of any offering of the Corporation’s securities, including the merits and risks involved, and are advised to seek their own professional advice on the legal, financial and taxation consequences of making an investment in the Corporation.No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this Presentation, and any representation to the contrary is an offence. Neither the Corporation nor any agent of the Corporation makes any representation or warranty, express or implied, and assumes no responsibility for the accuracy or completeness of the information contained in this Presentation, and nothing contained in this Presentation is, or shall be relied upon as, a promise or representation by the Corporation as to the past or future performance of the Corporation.The Corporation does not undertake to provide any additional further information.Certain statements contained in this Presentation are forward looking statements. These forward looking statements are not based on historical facts but rather on the expectations of management of the Corporation regarding the Corporation's future performance. All statements, other than statements of historical fact, may be forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”, “propose”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Although the Corporation believes in light of the experience of its officers and directors, current conditions and expected future developments and other factors that have been considered appropriate that the expectations reflected in the forward‐looking statements are reasonable, undue reliance should not be placed on them because the Corporation can give no assurance that they will prove to be correct, and actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward‐looking statements. Forward‐looking statements contained in this Presentation include, but are not limited to, statements with respect to . Forward‐looking statements contained in this Presentation reflect the current beliefs and assumptions of the Corporation's management based on information in its possession as of the date of this Presentation.All forward looking information entails various risks and uncertainties that are based on current expectations and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, risks relating to the ability of exploration activities to accurately predict mineralization; errors in geological modelling, the ability to complete further exploration activities as well as the risk and uncertainties set forth in the Corporation's disclosure materials filed with the securities regulatory authorities in Canada, which are available under the Corporation's profile on www.sedar.com. Readers are urged to read these materials and should not place undue reliance on any forward‐looking statement and information contained in this Presentation. Readers are cautioned that the foregoing list is not exhaustive. The forward‐looking statements contained herein are expressly qualified in their

entirety by this cautionary statement. The forward‐looking statements included in this presentation are made as of the date of this presentation and the Corporation does not undertake and is not obligated to publicly update such forward‐looking statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.This Presentation contains information regarding mineral resources estimated at the projects of the Corporation referenced herein. Mineral resources are not mineral reserves and do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, socio‐political, marketing or other relevant issues. In particular, quantity and grade of reported inferred mineral resources in the estimates referenced in this Presentation are uncertain in nature and there is insufficient exploration to defined these inferred mineral resources as an indicated or measured mineral resource in all cases. It is uncertain in all cases whether further exploration will result in upgrading the inferred mineral resources to an indicated or measured mineral resource category..For details regarding the key assumptions, parameters and methods used to estimate the mineral resources referenced herein please see the technical reports titled "MINERAL RESOURCE ESTIMATE AND PRELIMINARY ECONOMIC ASSESSMENT FOR THE SANDTOWN PROPERTY, CAVE CITY, ARKANSAS" dated 30 JUNE 2015 and titled "Updated Technical Report for the Sandtown Project, Cave City, Arkansas" dated March 21, 2016, each filed on SEDAR under the Corporation's profile.Cautionary Note: Mineral resources that are not mineral reserves do not have demonstrated economic viability and there is no certainty that the Corporation's preliminary economic assessment will be realized. The Company advises that the production decision on the Sandtown deposit made by the Corporation was not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any particular level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will occur as anticipated or that anticipated production costs will be achieved. The Company further cautions that it’s previously disclosed preliminary economic assessment is preliminary in nature. No mining study has been completed. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that the preliminary economic assessment will be realized.Elliott A. Mallard, PG of Kleinfelder is the qualified person as per the National Instrument 43‐101 ("NI 43‐101") and has reviewed and approved the scientific and technical information contained in this Presentation

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DISCLAIMER



OPERATIONS OVERVIEW

Hottest Commodity in Oil Patch

“…frac sand industry, where we expect demand to grow by 80% in 2017 – the highest growth among all oil services sub-sectors.”

Goldman Sachs June, 2016

“…higher concentration of 40/70 and 100 mesh product, this is a potential windfall for southern mines while a potential headwind for select northern mines who tend to produce a greater relative volume of coarse product

Simmons and Company June, 2016

Currently trading at below $3/ton of inground reserve estimates while being geographically closer that Northern sources to Texas, Louisiana and Oklahoma O&G fields.

Average sand consumption increased from 2,000 tons per well (Q1 2012) to 4,000 tons per well (Q1 2016) (Source: IHS)

Acquisition of Ozark Premium Sand completed in late December, 2016. Currently producing and shipping to industrial and O&G customers (trucking and rail)

Attractive Value Proposition

Attractive upside

Owned and OperationalProcessing Facilities

Growing frac intensities & potential tight markets

We produce what is in high demand

Current annual run rate capacity of 600k tons expandable to over 1MM tons. Bell Farm has 49.6MM tons of Inferred Resources (see press release April 13, 2017)

We produce what is in high demand

Fine grades of sand (40/70 and 100 mesh) account for 80% of the frac sand market in US.Wisconsin and Illinois account for 62% of installed frac sand capacity in North America

IHS Markit January 2017



North American frac sand demand is expected to recover in 2017

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NAM frac sand demand Frac Sand Industry Update / February 2017

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Millions of tons annually ( ,000,000)

Source: IHS Markit



SELECT SANDS TIMELINE

JUNE 2015Sandtown,

Engineering Studies

Complete

SEPT 2014LaRonge

acquires 22% equity in Canfrac

Sands

NOV 2014LaRonge

changes name to Select Sands

Corp.

OCT 2014LaRonge options Arkansas USA

Frac Sands Prospect

SEPT 2015Start test mining and production at

Sandtown Arkansas USA

FEB 2016Resource

increases to 41.98M tons

AUG 2016Gold asset

sale to Comstock

Metals

SEPT 2016Wet

processing plant

acquisition

DEC 2016Complete

acquisition of Ozark Premium

Sand,New CEO

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MAR 2017Liberty Oil & GasMillion Ton/Year

Multi-year Contract

JAN 2017Purchase of additional

acreage now being

evaluated

JAN 2017First Rail

Shipment to O&G

Customer

MAR 2017Dedicated rail

siding for exclusive

movement of sand

APR 2017Bell Farm 43-101 completed, total 49.62MM Tons Inferred Mineral

Resources



+ Indicated Mineral Resources (Silica Sand)

+ Sandtown 42.0MM tons (TetraTech Report Feb.,2016)

+ Inferred Mineral Resources (Silica Sand)

+ Bell Farm 49.6MM tons (Kleinfelder Report April, 2017)

+ Finer mesh / grade deposits of 40/70 & 100 mesh (70/140mesh)

+ Contains high-purity Silica Sand (+99% SiO2), with high roundness and

sphericity, exceeds or meets various industrial and API Tier-1

Specifications

+ Crush Resistance: 9K-10K of 40/70 & 10K of 100 mesh (Stim-Lab Inc Results)

+ Annual production capacity of 600,000 tons, in the process of being

expanded to 1 MM tons of commercial Silica Sand products; operational

year-round

+ Target markets are Energy (oil and gas), Industrial & Specialty Products

+ Sandtown is closer to the major Texas, Oklahoma and Louisiana energy

and industrial markets than Northern silica mines, offering up to US$15/ton

savings in transportation costs (Source: UP & BNSF Rail Quotes)

SANDTOWN PROJECT

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Overview of Ozark Premium Sand Acquisition

+ Permitted Wet Processing Plant

+ Permitted Dry Processing Plant On Union Pacific Rail

+ 7,000 tons of dry storage

+ 26-Acres Real Estate

+ Office & Truck Shop

+ Earth Moving Equipment etc,

+ Customer List

+ Good Will

+ Inventory

(See Press Releases dated October 9, 2016 and November 24, 2016)

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BELL FARM VS SANDTOWN PROJECT

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+ Location:

+ Two Miles or 3.2km

Northwest of Sandtown

Quarry

+ Paved Road Access

+ Mostly Cleared

+ Gravel road through the

property

+ Access to nearby three-

phase power

One mile (1609 m)

Bell Farm

Sandtown

Cave City, AR



Bell Farm Recent Addition

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability(see press release April 13, 2017)



Major Basins, UP Rail Network and a 400 Mile Trucking Radius

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Select Sands Operations



EVOLUTION OF THE FRAC SAND MARKET

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Potential Upside Scenario

Source: NavPort

Completion by Mesh Sizes

Source:NavPortOct., 2-16



COMMENTS – SHALE LEADER SAND/ LATERAL FOOT

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EOG BakkenEOG used 2700 lbs/ft of sand in 10,000’ lateral

well (13,500 tons of sand per well)

CHK HaynesvilleCHK utilized 3000 lbs/ft of sand in a 10,000’

lateral well (15,000 tons of sand per well)

XEC PermianXEC is using 3500 lbs/ft of sand in a 10,000’


RICE MarcellusRice is using 5400 lbs/ft of sand in a 10,000’


Sources include : Public Filings ; Simmons Company



BOARD OF DIRECTORS & SENIOR MANAGEMENT

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Zigurds R. “Zig” Vitols

• 16 years experience with Martin Marietta Materials, as President of Mid-South Division, VP General Manager Arkansas District, and VP General Manager Houston District

• 17 year experience with W. R. Grace & Co., as Northeast General Manager, Canadian Sales & Marketing Manager, Western RegionManager, & Branch Manager.

• MBA, International Business, Heriot Watt University, Edinburgh, Scotland

• Civil Engineering Technology, Mohawk College, Hamilton, Canada

Rasool Mohammad

• Over 20 years’ experience in the mining and mineral exploration industry• Mineral exploration and development projects in Canada, the United

States, Mexico, Colombia, Peru, and Brazil.• Projects from grassroots level to over 50,000 tons per day operations in the

Americas• Bachelor of Science in Mining Engineering from UET, Peshawar, Pakistan

(1991)

Vincent PalomarezDirector of Sales North America• Mr. Palomarez graduated from Texas A&M University in College Station,

Texas with a Bachelor of Science. • Ten years with Baker Hughes Incorporated, where he held various sales and

leadership roles for Drilling & Completions products and services within the North America market including pressure pumping services.

• With a specific focus on unconventional applications in key basins such as the Permian Basin, Eagle Ford Shale, Marcellus Shale, and the Bakken, Vincent brings vast knowledge of the value drivers required to develop successful product campaigns in the highly volatile shale plays.

David Gianinni

• David Giannini is an investment banker registered with Scarsdale Equities LLC working from both Houston, Texas and Ottawa, Ontario. David has over 30 years experience in the investment sector.

• Prior to joining Scarsdale Equities in 2006, he was with Sanders Morris Harris in institutional sales, Jefferies & Company, Inc., Simmons & Company International

• In recent years he has specialized in oil & gas, metal mining, and related industries. Mr. Giannini graduated with a B.A. and LL.B. from the University of Western Ontario, and an LL.M. from the London School of Economics.

Douglas TurnbullDirector & Compensation Committee Chairman

• Consulting geologist with over 30 years experience in diamond, precious and base metal exploration

• Bachelor of Science degree with Honours in Geology and is a Qualified Professional Geoscientist

• Director on the boards of Comstock Metals Corp. and Grizzly Discoveries Inc.

Darren Urquhart• Chartered Accountant and B.A.Sc. (Electrical Engineering)

with more than 10 years of experience working in both public practice and industry

John KimeIndependent Director & Audit Committee Chairman

• President and CEO of iBD Advisors Inc.• From 1991 to 1998, served as Director of International

Development for Big ‘O’ Inc.• BA from Western University, has a significant business

operating, accounting and financial experience.

Director

President, CEO & Director

COO & Director



BALANCE SHEET

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Capital Structure as of March 31, 2017

Shares Issued and Outstanding: .................................. 86,528,316Warrants Outstanding: .................................................... 5,824,780Options Outstanding: ...................................................... 4,989,333Fully Diluted: ....................................................................97,342,429

No Debt

Pro- forma Cash: .......................................................................... US$11.4MM**

** Assuming all Warrants and Options are exercised

Select Sands’ Newport Rail Loading Photo Apr., 2017



INVESTMENT UPSIDE

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+ Sandtown Project has an Indicated Mineral Resource of 42.0MM tons (38.08MM tonnes) of high purity silica resources

+ Bell Farm reports Inferred Mineral Resources of 49.6MM tons.

+ SNS’ PEA report (dated June 10, 2015) Pre-tax NPV at 8% of US$160 million based on 20M tons of Indicated Mineral

Resources

+ Premium Silica Sand product attributes which are in constant demand in both industrial and energy markets

+ Superior location of SNS Silica Sand quarry in Arkansas, USA to service industrial product suppliers and oil/gas fracking

markets in the southern U.S., providing significant and sustainable logistic advantages and cost savings

+ $US 6MM cash (No debt)

+ Currently in production-both rail and trucking options to ship products to customers

+ Select Sands owns 20MM of Comstock (V.CSL) common shares issued as consideration for the sale of the company's

gold assets in 2016

SIGNIFICANT POSSIBLE OPPORTUNITIES

+ Become a significant Tier-1 Silica Sand Supplier into Oil & Gas market

+ Potential to generate profitable business very rapidly with low capex

+ Value of SNS investment in CSL could increase substantially with the CSL ongoing exploration efforts

Cautionary Note: See Disclaimer on page 2; The PEA is preliminary in nature , and there is no certainty that the PEA will be realized. For details of the

PEA see company’s press release dated June 10, 2015 and the company’s technical report available at www.sedar.com



Developing a Tier 1 commercial Silica Sand deposit in Arkansas with low capex and currently in production.

+ Quality Tier 1 Grade Advantage + Logistics Advantage + Year Round Mining Advantage

+ Regional Producer

+ Situated to Serve Southern U.S.A

+ Cost Effective

+ Mild Winters

+ Optimum Ground Conditions (No Sub-Zero Temperatures)

+ Operational Year-Round

+ Critical in a Variety of Industries

+ ”Northern White” Premium

FINAL TAKE AWAY

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SELECT SANDS CORPORATION310 – 850 West Hasting Street, Vancouver, British Columbia, Canada V6C 1E1

+1 (604) 639-4533

SELECT SANDS CORPORATION310 – 850 West Hasting Street, Vancouver, British Columbia, Canada V6C 1E1

+1 (604) 639-4533

OZARK OPERATIONS9470 Harrison StreetNewark, AR 72562

OZARK OPERATIONS9470 Harrison StreetNewark, AR 72562

SELECT SANDS AMERICA CORPORATION5005 Riverway DriveHouston, Texas 77056

SELECT SANDS AMERICA CORPORATION5005 Riverway DriveHouston, Texas 77056

www.Selectsandscorp.com [email protected]

Documents

TSX-V: SNS OTCQX : SLSDF - Select Sands Corp · 2017. 4. 21. · Sands Corp. (the “Corporation”) for shareholders about the frac/silica sand industry as well as the Corporation's