WHITE SILICA SAND OCTOBER 2019 SUPPLEMENTAL INFORMATION
Conductivity and Permeability CPS Wanipigow 3 rd Party Conductivity Results are similar to typical Tier-1 Wisconsin Sand Results Tier-1 and Tier-2 are commonly used terms in the industry and are used herein for illustration purposes only Conductivity at 8,000 psi, 150 o F and 2 lb/ft 2 for 50 hours between Ohio Sandstone Permeability at 8,000 psi, 150 o F and 2 lb/ft 2 for 50 hours, between Ohio Sandstone 5 6 350 20 7 6 5 1 Wisconsin (NWS) Wisconsin 1 7 40/70 Range 300 18 (NWS) CPS CPS 40/70 Range 40/70 40/70 4 2 2 3 Tier-1 (NWS) 4 250 16 md-ft Darcy Tier-2 (Regional) 8 10 200 14 Regional Tier-2 8 40/70 Sand 9 Regional Tier-2 150 12 40/70 Sand 11 11 9 Graph approximately to scale Conductivity of 40/70 sand (md-ft) Permeability of 40/70 sand (Darcy) StimLab Test Results for two samples from CPS Wanipigow Deposit Based on Wisconsin Sand Suppliers’ published data (Tier-1) Based on regional Alberta and Permian (TX) Suppliers’ published data (Tier-2) 1) US Silica NWS 4) BadgerFrac NWS T4070 7) Wisconsin Proppants LLC (WI) 8) Badger Pure Permian TM 11) Wisconsin Proppants LLC (TX) 9) Black Mountain Winkler White TM 2) Hi-Crush NWS 5) Covia (Fairmont) 3) Superior Silica NWS 6) BadgerFrac NWS FW4070 10) Athabasca Minerals Firebag 2
Conductivity and Permeability StimLab Conductivity Test Results for CPS Wanipigow Deposit StimLab Permeability Test Results for CPS Wanipigow Deposit 3
Crush Strength Results CPS Wanipigow Crush Strength Test Results 30/50 40/70 50/140 70/140 October 2019 Test Results 5 7K 1 8K 2 11K - 12K 3 10K - 11K 4 API 19C Crush Strength Rating (<10% fines) Lowest % Fines at 8,000 psi 11.77% 8.48% - - Lowest % Fines at 9,000 psi - 11.08% - - Lowest % Fines at 11,000 psi - - - 9.53% Lowest % Fines at 12,000 psi - - 8.03% 13.43% Lowest % Fines at 13,000 psi - - 10.23% - Notes 1. One 30/50 sample tested at 7K, with 11.77% fines at 8K 2. Three 40/70 test samples tested at 8K, with lowest fines of the three samples at 9K testing at 11.08% 3. One 50/140 sample tested at 12K, with 10.23% fines at 13K 4. Three 70/140 test samples resulting in a range of 10K – 11K 5. 95lbs of bulk samples from six different boreholes from the 2018 sampling program at varying depths were sent to Lonquist Lab Preliminary Test Results from Raw Samples that were washed, run through an attrition scrubber and dried at Lonquist Labs in Edmonton, AB. See the Technical Report published by CPS on SEDAR prepared in accordance with NI43-101 for Test Results completed in 2018 at StimLab, which did not include attrition scrubbing as part of the wash process. (Technical Report Section 11 contains test results from 263 tests conducted at TPS, and 14 bulk samples conducted at StimLab) 4
Disclaimer Technical Disclosure The technical information in this Presentation has been extracted or summarized based on the information contained in the independent Preliminary Feasibility Study (“PFS”, the “Study” or the "Technical Report") and Mineral Resource update of Wanipigow Sand Project, on the Company’s 100% owned Ordovician silica sand deposit in southeastern Manitoba, reviewed and approved 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 National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI-43-101”). Readers are cautioned not to solely rely on the summary of this information in the Presentation, but should read the PFS in its entirety which is available for review on the Company's profile on SEDAR at www.sedar.com. Additional information related to conductivity, permeability, additional testing of crush strength and comparison to other suppliers is based on publicly disclosed 3 rd party information available for various suppliers in Wisconsin, Texas and Alberta. CPS makes no representation as to the accuracy of this information and has included this information for reference purposes only. Forward Looking Information Certain statements contained in this Presentation 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 Presentation contains forward-looking statements pertaining, but not limited, to: 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 Presentation, 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 5
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