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Athabasca Minerals Announces Q1-2022 Financial Results with $22.4M Gain in Shareholders Equity and Annual Shareholder Meeting Date

May 26, 2022

Edmonton, Alberta--(Newsfile Corp. - May 26, 2022) - Athabasca Minerals Inc. (TSXV: AMI) ("AMI", "Athabasca" or the "Corporation") an integrated group of companies that develops & delivers sand & gravel products, technical services, transportation, and supply-chain solutions - announces the following highlights with the release of its Q1-2022 Financial Statements:

  • Gain in Shareholders' Equity of $22.4 million to $37.5 million, which represents $0.49 per share.

  • Property, Plant & Equipment increasing to $40.1 million primarily driven by the Corporation's Wisconsin acquisition.

  • Total comprehensive income of $22.3 million, which on a per share basis represents $0.289/share basic and $0.284/share diluted.

  • Q1-2022 consolidated gross revenue of $7.0 million, positive operating income of $0.2 million, and year-to-date revenue forecasted to exceed $9.3 million at time of filing.

  • Annual General & Special Meeting of Shareholders scheduled for June 21, 2022.

  • Availability of Q1-2022 Financial Statements (ending March-31st, 2022) and associated Management Discussion & Analysis (MD&A) on SEDAR www.sedar.com and the Corporation's website www.athabascaminerals.com.

Robert Beekhuizen, Chief Executive Officer, states: "AMI continues to grow year-over-year. We are seeing robust cash flow throughout all divisions, and the Corporation's current outlook is for at least a doubling of annual revenues versus 2021, which was also a growth year. The positive impact of our US acquisition has led to sales of sand product throughout the US and Canada. We believe that AMI is clearly undervalued in the capital markets considering the current stock price. There is tremendous upside potential and Management is focused on continuing the growth trajectory and bringing further value to our shareholders."

RECAP OF Q1-2022 KEY OPERATIONAL HIGHLIGHTS:

Q1-2022 key operational highlights noted in the MD&A and subsequent for Q2-2022 include:

  • On February 22, 2022, the Corporation announced that it commenced the mining and delivery of premium domestic sand from its Firebag Sand Resource in relation to a 1 million tonne filter sand order for a major oilsands operator under its Métis North Sand & Gravel partnership agreement. In Q1-2022, following a Temporary Field Authorization by Alberta Environment & Parks (AEP) to prepare a winter (ice) road, approximately 120,000 tonnes of Firebag sand were removed in February-March. The Corporation is preparing a regulatory application for a permanent road to Firebag for submission to AEP in Q2-2022.

  • On March 7, 2022, the Corporation announced the receipt of two purchase orders totaling $2.2 million for the supply of aggregates from the Hargwen and Coffey Lake pits. The Coffey Lake order was completed in April, and the Hargwen order will commence in June, 2022.

  • On March 16, 2022, the Corporation announced a Definitive Agreement with Alberta Pacific Forestry Industries (Al-Pac) for the construction, operation, and supply of treated industrial wastewater from Al-Pac's neighboring operations to AMI's Prosvita Sand Project.

  • On May 3, 2022, the Corporation announced that its joint-venture, AMI Silica LLC in Wisconsin, USA reached a milestone surpassing more than 100,000 tons production & sales of premium quality sand in the month of April, 2022.

  • On May 16th, 2022, the Corporation announced the appointments of David Churchill, CPA, CA, ICD.D as Chief Financial Officer, and Philip Schuman, MBA, CIP as Vice-President of AMI RockChain, respectively.

FINANCIAL AND OPERATIONAL HIGHLIGHTS

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ANNUAL GENERAL AND SPECIAL MEETING

The Corporation is also pleased to announce that it has filed a notice of meeting and management information circular (the "Circular") to its shareholders of record as of May 2, 2022 in connection with its Annual General and Special Meeting of shareholders (the "Meeting") to be held on June 21, 2021 at 9:30 a.m. (Mountain Time). The Meeting materials have been mailed out to shareholders. The Corporation will provide a Corporate Update during the Meeting.

Due to the ongoing global coronavirus (COVID-19) public health emergency and in consideration of the health and safety of our employees, shareholders, and community, the Corporation strongly encourages shareholders to vote on the matters before the Meeting by proxy, and to view the Meeting through the conference call and webcast, rather than attend in person. The routine legal requirements of the Meeting will be carried out by a limited number of Company representatives.

Athabasca encourages all shareholders to participate in the Meeting. Shareholders may submit questions to management ahead of the Meeting via email to . There will also be an opportunity to ask questions during the Meeting through the platform.

All meeting material has been filed on SEDAR.com and on the Corporation's website at: https://athabascaminerals.com/investor-relations/annual-documents/2022/.

ABOUT ATHABASCA MINERALS INC.

Athabasca Minerals is an integrated group of companies capable of full life-cycle development and supply of aggregates and industrial minerals. The Corporation is comprised of the following business units: AMI Silica, (www.amisilica.com) with resource holdings and business interests in Alberta, North-East BC, and the United States; AMI Aggregates, with aggregates from its corporate pits and which manages the Coffey Lake Public Pit for the Government of Alberta; Métis North Sand & Gravel which is a strategic partnership with the McKay Métis Group to deliver aggregates to the energy, infrastructure, and construction sectors in the Wood Buffalo region; AMI RockChain, a technology-enabled business using its proprietary RockChain™ digital platform, automated supply-chain and logistics solutions, quality-assurance & safety programs to deliver products across Canada; and TerraShift Engineering which conducts resource exploration, regulatory, mining, environmental and reclamation engineering for a growing nation-wide customer base and is also the developer of its proprietary TerraMaps™ software.

For further information, please contact:

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.

FORWARD-LOOKING STATEMENTS

This news release contains certain statements or disclosures relating to Athabasca that are based on the expectations of its management as well as assumptions made by and information currently available to Athabasca which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Athabasca anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "would", "will", "anticipates", believes", "explores" and similar expressions.

Athabasca believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: a significant expansion in COVID-19 restricting or prohibiting the operation of the Athabasca's facilities or significantly impacting the Company's supply chain; the duration and extent of the relatively low global oil prices; general economic, market and business conditions including those in the event of an epidemic, natural disaster or other event; increased costs and expenses; reliance on industry partners; and certain other risks detailed from time to time in Athabasca's public disclosure documents including, without limitation, those risks identified in this news release, and in Athabasca's annual information form, copies of which are available on Athabasca's SEDAR profile at www.sedar.com. Moreover, the duration and impact of the COVID-19 pandemic is unknown at this time and it is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Company.

Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.

Additional information on these and other factors that could affect the Corporation's operations and financial results are included in this news release and may be accessed under Athabasca's profile on SEDAR at www.sedar.com.

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