Canadian Premium Sand Undertakes a Capital Optimization Review and Updates Investor Website and Corporate Presentation
Canadian Premium Sand Undertakes a Capital Optimization Review and
Updates Investor Website and Corporate Presentation
CALGARY, Alberta, July 18, 2019 -- Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to
announce that it is undertaking a comprehensive capital optimization review to identify cost reductions to the capital cost
figures outlined in the Preliminary Feasibility Study and Mineral Resource Update (the " Technical Report ") and in the
Company's June 12, 2019 press release relating to its Wanipigow Sand Project (the " Project"). This review, which is
anticipated to be completed by the end of September, is expected to result in lower capital cost requirements and a scaled
market-entry strategy. In conjunction with the capital optimization review, management continues to engage in ongoing
conversations with several potential customers, trucking providers and transload and railway operators in an effort to refine its
business plan.
"The capital optimization review and business plan refinement will improve an already attractive investment opportunity, with
the goal being to achieve meaningful reductions in initial capital cost,” said Glenn Leroux, President & CEO.
Management has also updated its investor website and corporate presentation (the " Presentation"). The updated website
and Presentation contain information pertaining to the Project, including a market analysis, economic projections and a
general overview of the sales and marketing and transportation logistics plan to develop the Wanipigow Sand resource. This
updated information is the culmination of the Company achieving a number of significant milestones de-risking the Project to
make it shovel ready including obtaining the independent Technical Report, Participation Agreements with stakeholders
including Hollow Water First Nations and the Environmental Assessment License. The Presentation can be found on the
Investor Relations page on the Company website at www.canadianpremiumsand.com.
About the Wanipigow Sand Resource
As per the Technical Report, press-released on June 12, 2019, prepared in accordance with National Instrument 43-101 (“NI 43
-101”), the Wanipigow Sand Resource consists of 41.5 million tonnes of Measured Resource, 8.1 million tonnes of Indicated
Resource and 97.3 million tonnes of Inferred Resource. Furthermore, the Technical Report indicates a Proven and Probable
Reserve of 30.6 million tonnes, upon which the published economics, mine-life and business plan are based. Mineral
resources are not mineral reserves and do not have demonstrated economic viability.
About Canadian Premium Sand Inc.
The Company is an exploration stage company and a reporting issuer in Ontario, Alberta and British Columbia, and its shares
trade on the TSX Venture Exchange under the symbol "CPS".
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Technical Disclosure
The Technical Report, effective May 28, 2019 prepared by Roy Eccles, P. Geol. of APEX Geoscience Ltd. and Robert Farmer
P. Eng. of John T. Boyd Company, each of whom is independent of CPS and a “qualified person” under NI-43-101, providing
details of the Project including the quality assurance program and quality control measures applied and key assumptions,
parameters and methods used to estimate the Mineral Resources and Reserves is available for review under the Company's
profile on SEDAR at www.sedar.com.
Any disclosure of conclusions and or results materially different from those supported by the Technical Report as disclosed in
the Company's June 12, 2019 press release will be supported by an updated PFS filed within 45 days of the announcement of
conclusions and or results of the capital optimization review.
Cautionary Note Regarding Mineral Reserves and Mineral Resources
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this press release are
Canadian mining terms as defined in accordance with NI 43-101 under the guidelines set out in the Canadian Institute of
Mining, Metallurgy and Petroleum (the " CIM") Standards on Mineral Resources and Mineral Reserves, as may be amended
from time to time by the CIM. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource",
"Inferred Mineral Resource" used in this press release are Canadian mining terms as defined in accordance with NI 43-101
under the guidelines set out in the CIM Standards. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
For a detailed discussion of the Company's resource and reserve estimates and related matters see the Company's Technical
Report filed under the Company's profile on SEDAR at www.sedar.com.
Forward Looking Information
Certain statements contained in this press release constitute forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information as to the future events, results of operations and the
Company’s future performance (both operational and financial) and business prospects. In certain cases, forward-looking
statements can be identified by the use of words such as “expects”, “estimates”, “forecasts”, “intends”, “anticipates”,
“believes”, “plans”, “seeks”, “projects” or variations of such words and phrases, or state that certain actions, events or results
“may” or “will” be taken, occur or be achieved. Such forward-looking statements reflect the Company's beliefs, estimates and
opinions regarding its future growth, results of operations, future performance (both operational and financial), and business
prospects and opportunities at the time such statements are made, and the Company undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking
statements are necessarily based upon a number of estimates and assumptions made by the Company that are inherently
subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking
statements are not guarantees of future performance. In particular, this press release contains forward-looking statements
pertaining, but not limited, to: the ability to refine the Company's business plan through ongoing conversations with customers
and interested parties, including the anticipated results, benefits and timing for completion of the capital optimization review
including the ability to achieve meaningful capital cost reductions and improve the investment opportunity as a result of such
review; the amount of raw sand to be extracted and produced from the Wanipigow Sand Project; the mine life of the
Wanipigow Sand Project; the design and operation of the Wanipigow Sand Project and related operating, capital and
sustaining costs; the ability to transport silica sand to market from the Wanipigow Sand Project and the ultimate uses of such
sand; the number of jobs to be created from the development of the Wanipigow Sand Project; the anticipated effects on local
sand beaches or the local water table or community wells from the Wanipigow Sand Project; the anticipated economic and
social benefits and opportunities, including employment, contracting and training initiatives; the plans with respect to financing
ongoing operating activities; the timing and approval or permitting process with respect to the Wanipigow Sand Project; the
intention to use cash on hand and proceeds from future equity issuances to fund the Company's operations and future
development plans; industry activity levels; industry conditions pertaining to the silica sand industry; the ability of and manner
by which the Company expects to meet its capital needs; and the Company's objectives, strategies and competitive strengths.
By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or achievements of the Company to differ materially from
those anticipated by the Company and described in the forward-looking statements.
With respect to the forward-looking statements contained in this press release, assumptions have been made regarding,
among other things: the ability to obtain the necessary stakeholder, regulatory and environmental approval to advance the
development of the Wanipigow Sand Project; the ability to continue to consult with, and address feedback received from
interested stake holders including the Hollow Water First Nation and surrounding communities; environmental risks and
regulations; future global economic and financial conditions; future commodity prices; operating, capital and sustaining costs;
that the regulatory environment in which the Company operates will be maintained in the manner currently anticipated by the
Company; future exchange and interest rates; geological and engineering estimates in respect of the Company's silica sand
quantities; the recoverability of the Company’s silica sand and its quality; the accuracy and veracity of information and
projections sourced from third parties respecting, among other things, future industry conditions and product demand; demand
for horizontal drilling and hydraulic fracturing and the maintenance of current techniques and procedures, particularly with
respect to the use of silica sand; the Company's ability to obtain qualified staff and equipment in a timely and cost-efficient
manner; the regulatory framework governing royalties, taxes and environmental matters in the jurisdictions in which the
Company conducts its business and any other jurisdictions in which the Company may conduct its business in the future;
future capital expenditures to be made by the Company; future sources of funding for the Company's capital program; the
Company's future debt levels; the impact of competition on the Company; and the Company's ability to obtain financing on
acceptable terms.
A number of factors, risks and uncertainties could cause results to differ materially from those anticipated and described
herein including, among others: the effects of competition and pricing pressures; effects of fluctuations in the price of
proppants; risks related to indebtedness and liquidity, including the Company's capital requirements; risks related to interest
rate fluctuations and foreign exchange rate fluctuations; changes in general economic, financial, market and business
conditions in the markets in which the Company operates; changes in the technologies used to drill for and produce oil and
natural gas; the Company's ability to obtain, maintain and renew required permits, licenses and approvals from regulatory
authorities; the stringent requirements of and potential changes to applicable legislation, regulations and standards; the ability
of the Company to comply with unexpected costs of government regulations; liabilities resulting from the Company's
operations; the results of litigation or regulatory proceedings that may be brought against the Company; uninsured and
underinsured losses; risks related to the transportation of the Company's products, including potential rail line interruptions or
a reduction in rail car availability; the geographic and customer concentration of the Company; the ability of the Company to
retain and attract qualified management and staff in the markets in which the Company operates; labour disputes and work
stoppages and risks related to employee health and safety; general risks associated with the oil and natural gas industry, loss
of markets, consumer and business spending and borrowing trends; limited, unfavourable, or a lack of access to capital
markets; uncertainties inherent in estimating quantities of mineral resources; sand processing problems; and the use and
suitability of the Company's accounting estimates and judgments.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ
materially from those described in its forward-looking statements, there may be other factors that cause actions, events or
results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will
materialize or prove to be accurate, as actual results and future events could differ materially from those anticipated in such
statements. The forward-looking statements contained in this press release are expressly qualified by this cautionary
statement. Readers should not place undue reliance on forward-looking statements. These statements speak only as of the
date of this press release. Except as may be required by law, the Company expressly disclaims any intention or obligation to
revise or update any forward-looking statements or information whether as a result of new information, future events or
otherwise.
Any financial outlook and future-oriented financial information contained in this press release regarding prospective financial
performance, financial position or cash flows is based on assumptions about future events, including economic conditions
and proposed courses of action based on management’s assessment of the relevant information that is currently available.
Projected operational information contains forward-looking information and is based on a number of material assumptions and
factors, as are set out above. These projections may also be considered to contain future oriented financial information or a
financial outlook. The actual results of the Company's operations for any period will likely vary from the amounts set forth in
these projections and such variations may be material. Actual results will vary from projected results. Readers are cautioned
that any such financial outlook and future-oriented financial information contained herein should not be used for purposes
other than those for which it is disclosed herein. The forward-looking information and statements contained in this document
speak only as of the date hereof and the Company does not assume any obligation to publicly update or revise them to reflect
new events or circumstances, except as may be required pursuant to applicable laws.
CONTACT INFORMATION:
Canadian Premium Sand Inc.
Glenn Leroux
President and Chief Executive Officer
587.350.5772
Investor Relations
www.canadianpremiumsand.com