April 13, 2020 adminsns

Select Sands Update during the Covid-19 Pandemic

April 13, 2020

Vancouver, BC, Canada Select Sands Corp. (“Select Sands” or the “Company”) (TSX-V:SNS OTC:SLSDF) announced today a business update in response to the Global Covid-19 Pandemic (the “Covid-19 Pandemic”).  On March 11, 2020, the World Health Organization declared a global pandemic.  In order to combat the spread of COVID-19 governments worldwide have enacted emergency measures including travel bans, legally enforced or self-imposed quarantine periods, social distancing and business and organization closures.  These measures have caused material disruptions to businesses, governments and other organizations resulting in an economic slowdown and increased volatility in national and global equity and commodity markets.  Select Sands is continuing operations both in Arkansas, where product is mined, processed and shipped, as well as in George West, Texas where its 100% owned subsidiary, Select Sands America Corp., operates a transload facility supplying product to the Eagle Ford Basin.

Select Sands’ largest customer has recently curtailed frac operations and temporarily halted receipt of sand shipments in the Eagle Ford Basin due to the current situation.  The Company is working closely with the customer and looks forward to the resumption of shipments as conditions improve.  Given the current environment, Select Sands has adjusted its employee staffing levels at the George West Transload Facility and will operate with a minimal crew in the near term to serve operational needs as appropriate.

The Company’s previously announced project designed to optimize and consolidate processing assets to improve cost efficiencies (the “Plant Reconfiguration Project”) is continuing in Arkansas.

The Plant Reconfiguration Project includes installation of dry-processing equipment at the Company owned Diaz Rail Facility (“Diaz”), thereby increasing process efficiency by reducing inter-plant transportation costs.  Dry processing at Diaz will immediately save approximately 16 miles of interplant transportation and over one hour in transload logistics.  In addition, Select Sands has implemented a program to increase its owned truck fleet as conditions improve.  On a per mile basis, costs savings are estimated to be approximately 25% compared to outside contract trucking.  Once completed, product will be mined and wet processed at the Company’s Sandtown Quarry near Cave City, Arkansas and transported to Diaz near Newark, Arkansas where it will be dried, stored and shipped.  Diaz also hosts rail loading.  The completion of the Plant Reconfiguration Project will result In reducing load/unload events by half.  As previously announced, all the above referenced facility improvements for Diaz and the Plant Reconfiguration Project are being funded by a secured bank loan.

Amid the Covid-19 Pandemic, the Company has been pursuing relief through the Families First Coronavirus Response Act and the Paycheck Protection Program offered through the Small Business Administration.  The Company will provide further information with respect to these relief efforts once details are known.  Similar to other businesses, to supplement its financial position Select Sands has been successful in delaying certain payments to creditors.

Select Sands is revising its sales volume expectations for its Northern White Sand product offering for the first quarter of 2020 to approximately 59,000 tons and is rescinding its previous guidance for second quarter sales volumes.

Select Sands President and CEO, Zig Vitols remarked, “These are unprecedented times and I am truly appreciative of how our collective employee base has responded and kept operations going during this challenging time.  With the temporary hold on shipments the Company is taking the opportunity to redirect the workforce to largely focus on the Plant Reconfiguration Project. With the re-assignments, management sees the prospect bringing expected cost optimization benefits online before shipments resume as the backdrop for the oil and gas industry improves.”

About Select Sands Corp.

Select Sands Corp. is an industrial silica product company developing its 100% owned, 520-acre Northern White, high quality silica sands project located in Arkansas, U.S.A.  Select Sands’ Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, and Louisiana than Wisconsin sources.

Forward-Looking Statements

This news release 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 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.  Forward looking statements include statements regarding the Company’s projected sales volumes, the timing and anticipated components of the Plant Reconfiguration Project, increasing process efficiency, reducing transport costs through internal trucking, reducing inter-plant transportation distances, cost and the impacts that the Covid-19 Pandemic will have on the Company’s business.   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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Company Contact

Please visit www.selectsands.com or contact:

Zigurds Vitols
President & CEO
Phone: 844-806-7313

W. Joe O’Rourke
Director of Sales
Phone: 713-689-8000

Arlen Hansen
Investor Relations
Phone: 604-684-6730


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Select Sands America Corp. is a subsidiary of Select Sands Corp.


Select Sands Corp.
Phone: +1-844-806-7313