TSX-V: SNS | OTC: SLSDF Corporate Presentation | February 2020 Uniquely Positioned for Success www.selectsands.com
TSX-V: SNS | OTC: SLSDF TSX-V: SNS | OTC: SLSDF Disclaimer 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 Select Sands Corp. (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. All cash figures shown in this presentation are in US dollars unless otherwise noted. www.selectsands.com 2
TSX-V: SNS | OTC: SLSDF TSX-V: SNS | OTC: SLSDF About Select Sands Select Sands is a supplier of Select Sands Corp. is an industrial Silica Sand products company in premium commercial silica ❑ production on its 100% owned project in Arkansas, U.S.A.; sand and industrial frac sand to the North American The company produces Northern White, finer mesh sand- 40/70 ❑ markets. Mesh and 70/140 Mesh (100 Mesh) and has a combined Inferred/Indicated Resources of ~40MM tons* (2016); The Arkansas mine is strategically located to oil & gas (O&G) and ❑ industrial customers in Texas, Oklahoma, Louisiana, Colorado, and New Mexico; Year-round production and shipping capabilities with access to ❑ three modes of delivery by truck, rail and barge; * Sandtown 42.0MM tons of Indicated Mineral Resources (Tetra Tech, February 2016). National Instrument 43-101 technical reports are available on www.sedar.com. www.selectsands.com 3
TSX-V: SNS | OTC: SLSDF Nor th ern Wh ite S ilica ( NWS ) : A S up er ior P roduct High quality sand available based on preferred O&G specifications ❑ NWS is predominantly mined in the North Midwestern US ❑ (Wisconsin, Minnesota and Illinois) and transported to basins in the Southern US E&P companies have continued to shift from coarser grains and ❑ vicious fluid to finer mesh and slickwater treatments to increase recoveries Select Sands provides a relatively spherical, preferred crush range ❑ ACC Thematics, AltaCorp Capital, Investing in the North American Proppant Industry, June, 2018 product closer to the basins in the Southern U.S. than many Northern sources www.selectsands.com www.selectsands.com 4
TSX-V: SNS | OTC: SLSDF Recent U p dates S ummar y Opening of transload facility in George West, Texas to service the Eagle Ford ❑ basin Long Term Contract with major E&P , announced in December 2019. ❑ • Three years with a fourth-year option $4.5 million in new debt financing obtained from bank at 5.25% ❑ • Reconfigure processing facilities for cost optimization • Finalized purchase of Rail loading facility in Diaz, Arkansas by executing option to purchase leased facility • Reduce interplant transportation through consolidation of processing facilities Continuing discussions to explore M&A opportunities* ❑ * There is no guarantee that the Company will be able to complete the M&A opportunities being ❑ reviewed www.selectsands.com www.selectsands.com 5
TSX-V: SNS | OTC: SLSDF Strategic Loca tion Destinations that have been shipped to: FRAC INDUSTRIAL ❑ Positioned closer to the most active onshore basins (Permian, Eagle Ford, Haynesville, etc.) relative to competing Northern White sand operations for lower mine-to-market transportation costs; ❑ Barging capabilities on Mississippi River allows for large (8-10k ton) cost-effective movements. ❑ Year-round production, combines favorably with Arkansas as a business friendly state. ❑ Majority of shipments go to the Texas Basins with the remainder heading to Colorado, Louisiana and Oklahoma Strategically located for rail, barge, and highway delivery 6 www.selectsands.com 6
TSX-V: SNS | OTC: SLSDF S elect S ands Assets Location Sandtown Ozark Diaz, George West, Processing AR TX Facility Mine Wet & Dry Rail Loading Rail Transload Processing Type 40MM 600,000 32 car 180 car holding Capacity Tons* Tons per holding or 20 or 150 car Year car loading transloading Status Active Mine In Active Active Transload Production Loading • Indicated resource as per TetraTech 43-101 report February 2016 National Instrument 43-101 technical reports are available on www.sedaar.com Arkansas Mining & Processing George West Transload 7 www.selectsands.com www.selectsands.com 7 7
TSX-V: SNS | OTC: SLSDF TSX-V: SNS | OTC: SLSDF F inancial & O p era tiona l High ligh ts Metric Performance Revenue and continued Q3 2019 revenues of $1.1M (USD) with 39,669 tons operations sold. A 32% increase from Q3 2018 but industry downturn continues to effect the frac sand market. 109,719 total tonnage sold in first three quarters of 2019. Cash Preservation Company remains focused on preserving cash during industry wide downturn through reducing staffing and other related expenses. Recently announced sale of Bell Farm asset for $700,000 to strengthen balance sheet. www.selectsands.com 8
TSX-V: SNS | OTC: SLSDF TSX-V: SNS | OTC: SLSDF EBIT DA Reconciliation of Net Income (Loss) to EBITDA to Adjusted EBITDA Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2019 2018 2019 2018 Net (Loss) Income $ (1,992,381) $ (136,140) $ (5,876,712) $ 2,042,996 Add Back: Depreciation and depletion 276,748 243,818 829,234 704,344 Share-based compensation - 60,910 74,700 488,154 Interest on long-term debt 49,313 44,840 138,036 117,750 Provision for income taxes - (60,197) - 526,075 Deferred income tax expense - - 1,754,361 - EBITDA* $ (1,666,320) $ 153,231 $ (3,080,381) $ 3,879,319 Add Back: Share of loss of equity investee 111,291 17,815 287,283 67,548 Gain on extinguishment of debt - - (21,195) - Adjusted EBITDA* $ (1,555,029) $ 171,046 $ (2,814,293) $ 3,946,867 • See note re non-IFRS financial measures on second last slide www.selectsands.com 9
TSX-V: SNS | OTC: SLSDF Share Structure Data as of September 30th, 2019 Shares Issued & Outstanding 88,563,316 SNS Warrants 0 Options (avg $0.68) 5,245,000 Fully Diluted 93,808,316 SLSDF www.selectsands.com 10
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