The Corporation’s silica sand deposit “Firebag Project” is located 95 km north of Fort McMurray and is accessible via Highway 63. The planned operation is for the production of industrial proppants for use in the hydraulic fracturing of oil and gas wells. Independent testing by both Stim Lab and Proptester confirmed a high-quality product with crush strength meeting or exceeding American Petroleum Institute and International Standards Organization standards for frac sand. A Preliminary Economic Assessment (“PEA”) confirmed that the Corporation’s Firebag Project has considerable potential for development as a frac sand resource, which includes the potential for a large, highly economical deposit with high margin, rapid payback and 25 years of open pit mining. The PEA was prepared by Norwest Corporation (“Norwest”), headquartered in Calgary, Alberta. As silica sand demand continues to increase, Athabasca Minerals has focused on establishing what will be needed to bring product from its Firebag asset to market in an effort to capitalize on the renewed increase in silica sand demand.

Athabasca Minerals Inc. has purchased 49.2% ownership of a private Alberta corporation (“Privco”) that owns the Montney In-Basin frac sand project (“MIB Project”) located in the vicinity of Dawson Creek and Fort St John. The MIB Project broadens the strategic growth and advancement of the Corporation’s wholly-owned subsidiary, AMI Silica Inc, in becoming the ‘in-basin’ leader for the supply of Premium Domestic Sand and frac sand solutions. STIM-LAB Inc. and Loring Laboratories Ltd. completed testing on a 70/170 fraction size domestic sand, which had sphericity of 0.7, roundness of 0.6, acid solubility of 2.3%, Silicon Dioxide (SiO2) content of 98.5%, and a crush value of 8K. These preliminary results indicate that the MIB Project sand aligns with API Standard 19C, which provides the specifications for sands used in hydraulic fracturing. The Montney basin represents over 50% of the entire frac sand demand in Canada.

Athabasca Minerals Inc. has purchased initial investment of $280,000 in cash and the issuance of 420,000 Athabasca (‘ABM’) shares was made for 16.2% interest in Privco2. An additional 33.4% interest will be acquired for $742,000 and the issuance of 1,680,000 Athabasca (‘ABM’) shares pending resource delineation results expected in April-2019. Early laboratory results of the Duvernay Project sand, as conducted by Stim-Lab Inc on samples taken from the deposit, showed favorable physical properties, with sphericity and roundness factors of 0.7 each, acid solubility of 2.6% and crush strength values of 9k psi (40/70 granularity) and test results of 10k psi (70/140 granularity). These preliminary results indicate that the Duvernay Project sand complies with API Standard 19C specifications for sands used in hydraulic fracturing.