TSX-V : SNS OTCQX : SLSDF CORPORATE FIRST IN QUALITY PRESENTATION - - PowerPoint PPT Presentation

CORPORATE PRESENTATION

September 2017

FIRST IN QUALITY

TSX-V: SNS

OTCQX : SLSDF

UNIQUELY POSITIONED FOR SUCCESS

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TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

DISCLAIMER

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This presentation includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward- looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward- looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

OUR VALUE PROPOSITION

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• In demand, high purity Northern White premium silica sand located in

Arkansas

• Distance advantage
• Closer than Wisconsin/Minnesota sources to Texas, Oklahoma,

Colorado, New Mexico and Louisiana

• Positioning for step expansion to increase capacity significantly
• Solid balance sheet and financial position

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

KEY INVESTMENT HIGHLIGHTS

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• More wells drilled per rig, longer lateral lengths, more frac stages per

lateral foot and more sand per frac stage

• Rapid technological advancements are making drilling profitability

possible at current commodity prices

Strong Industry Fundamentals Commercial Silica Deposit Significant Logistics Advantage Optimal Operating Environment

• High quality and high purity Northern White
• Inferred/Indicated Resources of ~90MM tons*
• Minimal cap-ex requirement for near term expansion
• Semi regional producer utilizing truck and rail logistics
• Serving: SCOOP/STACK/Woodford, Haynesville, Permian, DJ and Eagle

Ford

• Mild winters, including optimum ground conditions (no sub-zero

temperatures) … operational year-round

• Arkansas has shown to be Pro-business with a favorable regulatory

environment

* Bell Farm 49.6MM tons inferred Mineral Resources – Keinfelder , April 2017 * Sandtown 42.0MM tons Indicated Mineral Resources – Tetra Tech, February 2016

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

TIMELINE

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TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

TIMELINE

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Oct 2014 Acquisition of Sandtown Property Mar 2017 High Volume Multi-year Contract Jan 2017 First Rail Shipment to O&G Customer Apr 2017 New 43-101. Inferred and indicated at Bell Farm and Sandtown now ~90M tons Aug 2017 Actual 2017 Q2 frac/industrial sales volumes more than 135% higher than Q1 2016 Mining, Toll Manufacturing and sales to industrial markets Jan 2017 Purchase of additional acreage at Bell Farm Mar 2017 Acquire rail loading facility Jun 2017 Pre-announce Q2 volumes double of Q1 for frac/industrial sand FYE 2017 Nameplate capacity of 600K tons by year end Dec 2016 Acquisition of Ozark Premium Sand Finalized New CEO Oct 2015 Test Mining of Sandtown Begins

* Bell Farm 49.6MM tons inferred Mineral Resources – Keinfelder , April 2017 * Sandtown 42.0MM tons Indicated Mineral Resources – Tetra Tech, February 2016

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

Another tailwind for frac sand demand growth is the continuing increase in proppant consumption per well. The amount of frac sand consumed in each well has been driven higher by longer average horizontal well lengths, closer spacing of frac stages along the wellbore and increasing amounts of sand pumped per stage. The average well completion in 2016 used 75% more frac sand than the average well completion in 2014. ….the effect of a 55% increase in the average horizontal rig count and a 20% increase in average proppant loading per well is 70-80% growth in frac sand consumption in 2017. (Energy: Oil & Gas Drilling / Diversified Metals & Mining Industry Update, January 18, 2017) “... we think the BHI U.S. working land rig count of ~761 rigs (horizontal + directional) supports annualized demand of ~69mmtpa based on ~5,000 tons per well. A progression to ~6,000 tons per well, which we think will continue to develop this year, would be supportive of ~83mmtpa of annualized demand on flat rig counts.“ (Frac Sand Update, April 28, 2017) We believe the U.S. frac sand market demand is currently running at approximately 70MM tons per year compared to approximately 35MM tons during 2016. We estimate total domestic frac sand market capacity should increase to approximately 73MM tons per year during 2017. The previous peak cycle demand for frac sand was approximately 65MM to 70MM tons per [year]. We estimate that available industry capacity is approximately 95MM tons per year with a meaningful component of that being higher cost. Additionally a percentage of the 95MM tons per year of capacity may not be the appropriate grade [mesh] demanded by the

• market. (HCLP Initiation, June 22, 2017)

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SELL SIDE: MORE SAND IS COMING

Johnson Rice and Co. Coker Palmer KeyBanc

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

Laredo Petroleum Completed 3 wells with 15,000'+ laterals post 2Q17 Has completed several wells testing 3,300 lbs of proppant per lateral foot. Those wells are outperforming the 1.3MMboe type curve by 86%. Pioneer Version 3+ Completions North University - LSS – ~9,000’ laterals. 3,000 lbs/ft sand Hutt - Wolfcamp B – ~9,700’ laterals. 3,000 lbs/ft sand South University - Wolfcamp B – ~9,800’ laterals. 2,500 lbs/ft sand Hess Corp We continue to test higher stage counts and proppant loading in line with our focus on maximizing the value of our DSUs. We currently have 6 - 60-stage wells online and 11 wells completed with proppant loading of up to 140,000 pounds per stage. Core Labs We are still proponents of longer laterals, more sand, closer clusters and more stages. I think the complexity of the combination of sand that will be pumped will continue to increase. Cabot O&G …they are experimenting for now with more sand not less. The company also talked about more sand per well in the Marcellus RPC …proppant per stage is higher, and lateral lengths are continuing to grow, which yields more proppant per well from both those variables.” Basic Energy …Frac sand usage was up 10% Q/Q… Patterson UTI We saw it (sand consumption/well) move slightly up with our customers…Longer horizontal laterals, combined with advancements in completion designs, are leading to more stages per well. Source: Various public documents

E&P: FRAC SAND INTENSITY IS INCREASING

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TSX-V:SNS | OTCQX: SLSDF www.selectsands.com 9

200 400 600 800 1,000 1,200 1,400 1,600 19-Feb-10 16-Apr-10 11-Jun-10 6-Aug-10 1-Oct-10 24-Nov-10 21-Jan-11 18-Mar-11 13-May-11 8-Jul-11 2-Sep-11 28-Oct-11 22-Dec-11 17-Feb-12 13-Apr-12 8-Jun-12 3-Aug-12 28-Sep-12 21-Nov-12 18-Jan-13 15-Mar-13 10-May-13 3-Jul-13 30-Aug-13 25-Oct-13 20-Dec-13 14-Feb-14 11-Apr-14 6-Jun-14 1-Aug-14 26-Sep-14 21-Nov-14 16-Jan-15 13-Mar-15 8-May-15 2-Jul-15 28-Aug-15 23-Oct-15 18-Dec-15 12-Feb-16 8-Apr-16 3-Jun-16 29-Jul-16 23-Sep-16 18-Nov-16 13-Jan-17 10-Mar-17 5-May-17 30-Jun-17

US Drilling Activity

Horizontal Vertical + Directional

STRONG INDUSTRY FUNDAMENTALS

4,500 5,000 5,500 6,000 6,500 7,000 7,500 400 23.9 63.5 40.2 43.8 47.5 51.1 54.8 500 41.1 45.6 50.2 54.8 59.3 63.9 68.4 600 49.3 54.8 60.2 65.7 71.2 16.7 82.1 700 57.5 63.9 70.3 76.7 83.0 89.4 95.8 800 65.7 73.0 80.3 87.6 94.9 102.2 109.5 900 73.9 82.1 90.3 98.6 106.8 115.0 123.2 1000 82.1 91.3 100.4 109.5 118.6 127.8 136.9 Source: CPI Research

U.S. FRAC SAND DEMAND SNESITIVITY ANALYSIS

(MM TONS)

Average Sand Per Well (tons)

Horizontal Rig Count

18.3 Wells/Rig

U.S. DRILLING ACTIVITY

2014 Current Potential Horizontal Rig Count Wells/Rig/Year 1,275 15 807 20 807 24 Horizontal Wells Sand Use/Horizontal Well 19,125 2,800 16,140 5,500 19,368 7,500 Total Sand Consumption 53,550,000 88,770,000 145,260,000

SAND CONSUMPTION TRENDS (tons)

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

2,000 4,000 6,000 8,000 10,000 12,000

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Source: Energy Information Administration

HAYNESVILLE REGION NG PRODUCTION

Platts reports that September, sample production from the Haynesville is up nearly 35% from the same two-week period in 2016. …FORWARD CURVE LIKELY UNDERESTIMATES GROWTH Million cf/day 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com 50 100 150 200 250 300 350 400 Haynesville Marcellus Williston SCOOP/STACK Eagle Ford Permian

Active Drilling Rigs

Most Active US Land Basins

Year Ago Current

• Connected to Union Pacific rail network
• 300 mile trucking radius

STRATEGICALLY LOCATED

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Processing facility Source: GE Baker Hughes.

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

Industrial Frac

DESTINATIONS

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

PROPERTIES

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Sandtown Bell Farm

Quarry Type Resource Quantity Mile to Rail Status

Sandtown

Mono Crystalline Silica Indicated 42MM Tons 11-39 Miles Active

Bell Farm

Mono Crystalline Silica Inferred 49MM Tons 13-42 Miles Cleared Ready

* Bell Farm 49.6MM tons inferred Mineral Resources – Keinfelder , April 2017 * Sandtown 42.0MM tons Indicated Mineral Resources – Tetra Tech, February 2016

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

FROM MINE TO MARKET

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TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

Q2 2017: OPERATIONAL HIGHLIGHTS

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• Q2 2017 sales volumes for total frac and industrial sand increased 136% from Q1
• Process facility now has capability to produce at rate of 600K tons per year
• Numerous strategies to increase volumes and reduce costs
• Secured additional rail car storage to improve train sequencing
• Future plant capacity expansion

 Certain long lead time equipment has been purchased  Will be installed along with other components once enhanced logistics capabilities in place

Percent Q2 2017 Q1 2017 Change Frac sand 52,480 19,968 163% Industrial sand 466 2,459

• 81%

Frac and industrial sand 52,946 22,427 136% Other sand & gravel 4,146 6,801

• 39%

57,092 29,228 95%

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com 16

Q2 2017: SOLID FINANCIAL IMPROVEMENT

Three Months Three Months Ended Ended June 30, 2017 March 31, 2017 Revenue 3,083,192 $ 1,458,553 $ Cost of Goods Sold 2,116,518 1,766,126 Depreciation and Depletion 189,126 121,289 Income from Sand Operations 777,548 $ (428,862) $ General and Administrative ("G&A") Expenses (1) 1,173,682 2,684,280 Depreciation in G&A Expenses 320

• Operating Loss

(396,454) $ (3,113,142) $ Interest income 8,045 10,424 Foreign exchange (loss) gain (631,708) 170,999 Gain on sale of equipment 1,596

• Loss from flooding at plant

(76,737)

• Share of loss in equity investee

(57,554) (157,059) Net Loss (1,152,812) $ (3,088,778) $ Foreign currency translation adjustment 356,876 (308,736) Comprehensive Loss (795,936) $ (3,397,514) $ Basic and Diluted Loss Per Common Share (0.01) $ (0.04) $ Weighted average number of shares outstanding 86,959,360 85,484,729 Adjusted EBITDA (2) (254,315) $ (771,071) $

(1) Excludes depreciation. Includes non-cash share-based compensation of $633,910 and $2,196,418 for the second and first quarters, respectively. (2) Excludes depreciation, depletion and amortization; non-cash share-based compensation; gain on sale of fixed assets; and loss from flooding at plant. See appendix for reconciliation to net loss.

(In Canadian dollars)

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

UNIQUELY POSITIONED FOR SUCCESS

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➢ Arkansas location and quality ➢ Advantaged semi-regional sand provider with the quality characteristics of Northern White Premium Sand ➢ Positioned closer than Wisconsin/Minnesota sources to oil & gas basins in Texas, Oklahoma, Colorado, New Mexico and Louisiana than Northern White mines in the Upper Midwest ➢ Continued growth of sand intensity ➢ Upside opportunity ➢ Grow to >1MM tons per year with minimal capital investment ➢ Positioning for major step expansion ➢ Solid balance sheet and financial position

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com

APPENDIX

TSX-V:SNS | OTCQX: SLSDF www.selectsands.com 19

NON-IFRS RECONCILIATION: ADJ. EBITDA

Three Months Three Months Ended Ended June 30, 2017 March 31, 2017 Net Loss (1,152,812) $ (3,088,778) $ Add Back Depreciation and depletion 189,446 121,289 Share-based compensation 633,910 2,196,418 EBITDA (329,456) $ (771,071) $ Add Back Loss from flooding at plant 76,737

• Deduct For

Gain on sale of fixed assets (1,596)

• Adjusted EBITDA

(254,315) $ (771,071) $

(In Canadian dollars)

The above information is included for convenience only. Generally, a non-IFRS financial measure is a numerical measure of a Company’s performance, cash flows or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA is not a measure of financial performance (nor does it have a standardized meanings) under IFRS. In evaluating non-IFRS financial measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. The Company uses both IFRS and certain non-IFRS measures to assess operational performance and as a component of employee remuneration. Management believes certain non-IFRS measures provide useful supplemental information to investors in order that they may evaluate Select Sands' financial performance using the same measures as management. Management believes that, as a result, the investor is afforded greater transparency in assessing the financial performance of the Company. These non-IFRS financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS.

SELECT SANDS CORPORATION

310 – 850 West Hasting Street, Vancouver, British Columbia, Canada V6C 1E1 +1 (604) 639-4533 OZARK OPERATIONS 9470 Harrison Street Newark, AR 72562 SELECT SANDS AMERICA CORPORATION 363 North Sam Houston Parkway, Suite 1050 Houston, TX 77060

www.selectsandscorp.com info@slectsandscorp.com