June 2016 U3O8 Corp. Investee TSX: UWE OTCQX: UWEFF SSE: - PowerPoint PPT Presentation

Frac Sand Player in the Making Frac Sand Player in the Making June 2016 U3O8 Corp. Investee – TSX: UWE OTCQX: UWEFF SSE: UWECL | www.u3o8corp.com | www.samsilica.com

Forward Looking Statements Forward-Looking Statements & Disclaimer Certain statements and concepts contained herein constitute forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of South American Silica Corp. (“SAS”), including, but not limited to, the impact of general economic conditions, industry conditions, geopolitical risks, volatility of commodity prices, risks associated with the uncertainty of exploration results and estimates and that a resource will be achieved on exploration projects, that the Carina property will be developed as anticipated and frac sand potential is realized, that resource size estimates, production and timing of development will be achieved on any target area, currency fluctuations, the uncertainty of obtaining additional financing and exploration risk, will be achieved on any target area, currency fluctuations, the uncertainty of obtaining additional financing and exploration risk, and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Potential size estimates are conceptual in nature. There has been insufficient exploration to define a resource on the specified targets. It is uncertain if further exploration will result in resources being delineated on those targets. These forward-looking statements are made as of the date hereof and SAS. assumes no obligation to update or revise them to reflect new events or circumstances. Comparisons of SAS’ properties and exploration targets with other frac sand projects are conceptual in nature, and have not been independently verified by SAS and information regarding these peer deposits are drawn from publicly available information. Information on SAS and its projects are available on the company’s web site at www.samsilicacorp.com. Industry and peer information has been drawn from publicly available sources and have not been independently verified by SAS. 2 www.samsilica.com | www.u3o8corp.com

Strategy & Execution  Di  Discovered top quality frac sands within competitive “transport distance” of the d t lit f d ithi titi “t t di t ” f th Vaca Muerta shale & ports for export opportunities;  Dominant land position defined – staking needs to be completed;  Properties have full spectrum of grain sizes required by the frac sand industry;  Properties have full spectrum of grain sizes required by the frac sand industry;  Location:  Within reasonable delivery distance of the giant Vaca Muerta shale basin;  access to deepwater ports for potential export  access to deepwater ports for potential export.  Development strategy:  Define sand resource and take the projects to commercial production;  M&A potential  M&A potential – larger sand producers likely to enter field as: larger sand producers likely to enter field as:  US$ strengthens (sands from other jurisdictions become cheaper in US$ terms); and  Size of the frac sand market for the Vaca Muerta basin grows 3 www.samsilica.com | www.u3o8corp.com

Background: Background: Top Global Oil & Gas Shale Basins Sh l Shale Oil Rankings by Country Oil R ki b C t Shale Gas Rankings by Country Technically Recoverable Shale Oil Resources Technically Recoverable Shale Gas (billions of barrels) (trillions of cubic feet) USA USA 1,161 Russia 75 China 1,115 USA 48 Argentina 802 China 32 Argentina Algeria 707 27 Libya Canada 573 26 Australia 18 Mexico 545 Venezuela 13 Australia 437 Mexico 13 South Africa 390 Pakistan 9 Russia 285 Canada 9 Brazil 245 Source: US DOE Source: US DOE 4

B Background: k d Weakening oil prices – effect on shale oil OPEC & Shale Estimated Breakeven Costs OPEC & Shale Estimated Breakeven Costs US Crude Oil Production (Mpd) US Crude Oil Production (Mpd) $0 $50 $100 $150 $200 2007 Shale Oil Libya $184 Iran $131 Vaca Muerta Vaca Muerta Algeria Algeria $130 $130 now positioned now positioned iti iti d d Nigeria $123 ~ USA 2007 ~ USA 2007 Venezuela $118 Saudi Arabia $106 Iraq $101 UAE UAE $77 $77 Current US Crude Gas Production (Tcf) Qatar $60 Brent price Argentina Shale $58 US$50 Kuwait $54 Sources: WSJ, IEA US Shale $50 Sh l Shale Gas G *Vaca Muerta Shale in Argentina; Eagle Ford & Bakken Shale in the USA Oil & gas from shale becoming more efficient, lowering production costs from shale Sources: Energy and Capital, Wall Street Journal 5 www.samsilica.com | www.u3o8corp.com

Background: Vaca Muerta could replicate USA Vaca Muerta could replicate USA shale oil & gas boom Vaca Muerta set to emulate USA oil & gas from shale success Weekly US Crude Oil Production Jan. 1983 to Nov. 2014 • Vaca Muerta – after years of decline, (Barrels per day – millions) (Barrels per day millions) oil & gas production starting to rise due to shale development • Argentina currently spends $7B on energy imports energy imports • Argentina dependent on USA Vaca Muerta at technologies to reduce production this stage costs – enhances bilateral ties – declining crude production being declining crude production being reversed by shale oil • Vaca Muerta positioned today where the USA was in 2007 6 www.samsilica.com | www.u3o8corp.com Sources: US DOE, Bloomberg

Background: Rough estimate of Supply/Demand R h ti t f S l /D d for Proppant and Frac Sand in the Vaca Muerta • Total proppant requirement in Vaca Muerta ‐ proppant supply/demand 2017 ~ 800,000 tonnes 900 • ~50% (~400,000 tonnes) of requirement is for frac sand requirement is for frac sand 800 (oportunity 1) 700 Oportunity 2 • ~50% is for ceramic proppants, nd (kT) Frac sand 600 but a 9 or 10K (good quality) frac production (kT) sand is very likely to substitute for sand is very likely to substitute for 500 500 Deman O some of the ceramic proppant Total proppant requirement, increasing the 400 demand (kT) potential market share for sands 300 of exceptional quality. Frac sands Total frac sand demand (kT) ( ) are ~20% of the price of ceramic are 20% of the price of ceramic 200 proppants Oportunity 1 100  importance of very high quality Brazilian & Uruguayan sands 0 2015 2015 2016 2016 2017 2017 7 www.samsilica.com | www.u3o8corp.com

Our Position: Domestic Frac Sand Market Emerging All about quality & logistics Strategically Located in Uruguay Brazil Argentina Strategically Located in Uruguay, Brazil, Argentina Immediate Need for Local Frac Sand Brazil Properties Supply • Oil & gas production from the Vaca Oil & gas production from the Vaca Uruguay Properties Muerta is just starting Rio Grande Rio Grande • Foreign oil majors investing >$9B so far Port Port to develop the giant Vaca Muerta shale Vaca Muerta in Argentina in Argentina Montevideo Port Montevideo Port • Frac sand / proppant market expected to Buenes Aires Buenes Aires be 800,000 tonnes per year in 2016/2017. Current local production only 6,000t per Favoured Bahia Bahia Bahia Bahia route to the route to the year ear Blanca Port Blanca Port Vaca Muerta Rail • Almost all of Argentina’s frac sand San Antonio San Antonio Argentine imported from Brazil, China & USA Port Port Properties In  Our properties near key shale basins p p y Shale Shale & infrastructure (road, rail & ports) San Jorge Comodoro Comodoro Shale Port Port

O Our Position: P iti Competitive advantages  E  Early mover status – only North American frac sand l t t l N th A i f d M Map of basins with assessed shale f b i ith d h l oil & gas company in region  Location – sands close to Vaca Muerta & deepwater ports for export p p • Properties in Uruguay, Brazil & Argentina ≈ $140 per tonne to $150 per tonne transport cost to the Vaca Muerta • From China to Argentina ~$150/t (excl. transport costs within China) & ~55 day delivery within China) & ~55 day delivery  Complete range of grain sizes – can deliver tailored product to meet client’s requirements  Hydromining potential (eliminates dust)  Hydromining potential (eliminates dust) Assessed basins with resource estimate SAS’ Frac Sand SAS’ Frac Sand SAS’ Frac Sand Properties in p Properties in Properties in Properties in Properties in Assessed basins without Brazil, Uruguay & a resource estimate Brazil, Uruguay & Brazil, Uruguay & Argentina Argentina Argentina www.samsilica.com | www.u3o8corp.com 9