Mr. Dean Stuart reports

ATHABASCA MINERALS INC. ANNOUNCES THIRTEEN MONTHS ENDED 2014 RESULTS

Athabasca Minerals Inc. has released its financial results for the fourth quarter and 13 months ended Dec. 31, 2014. The corporation's audited financial statements and management's discussion and analysis for the 13 months ended Dec. 31, 2014, are available on SEDAR and on the Athabasca Minerals website.

Highlights in 2014:

Aggregate operations:

• Revenue, net of royalties at Susan Lake, was $26.33-million for 2014 as compared with $25.36-million in 2013.
• Earnings before interest, taxes, depreciation and amortization for 2014 (13 months) improved significantly as the year progressed due to improved sales volumes and improved production costs. Annual EBITDA of $3.5-million consisted of $5.1-million from June to December, 2014, as compared with $(1.6-million) from December, 2013, to May, 2014.
• A net loss of $830,000 was recorded for the 13-month period in 2014 as compared with a net profit of $1.92-million for the 12-month period in 2013.
• The company developed two new aggregate operations at the Cowper and KM248 pits through agreements with DeneCo Aggregates Ltd., a first nations company.
• Management entered into a joint venture agreement with Wood Buffalo Metis Corp. to explore, develop and produce aggregates for 10 years.

Firebag silica sand project development:

• Received the completed National Instrument 43-101 technical report titled "Inferred frac sand resource estimate for the Firebag property, northeastern Alberta, Canada," dated effective Sept. 19, 2014, and prepared by Roy Eccles, MSc, PGeol, and Steven Nicholls, BASc, MAIG, of Apex Geoscience Ltd., headquartered in Edmonton, Alta., and Mark Zdunczyk, CPG, a New York-based consulting geologist specializing in sand and aggregates (each a qualified person as defined under NI 43-101), with respect to the corporation's Firebag property located in northeastern Alberta, Canada, approximately 95 kilometres north of Fort McMurray; the technical report was filed, and is available for viewing, on the corporation's SEDAR profile;
• Engaged Norwest Corp. of Calgary, Alta., to complete a preliminary economic assessment to demonstrate the viability of the Firebag silica sand project, the results of which are set forth in the report titled "Preliminary economic assessment -- Firebag River sand property," dated March 3, 2015, and effective as at Nov. 26, 2014, which was filed, and is available for viewing, on the corporation's SEDAR profile;
• Submitted the conservation and reclamation business plan to the Alberta Environment and Sustainable Resource Development;
• The Firebag project approval received for the surface material lease and the right to work and remove sand from phase 1 from Alberta ESRD;
• Retained the services of AECOM of Edmonton, Alta., for engineering work on the development of the Lynton transloading facility near Fort McMurray.

President and chief executive officer Dom Kriangkum said: "We have recognized significant success through the implementation of a number of cost reduction opportunities in the extraction and processing of aggregates in 2014. Despite slow demand during the first two quarters, we supplied in excess of eight million tonnes of aggregates to regional customers, and built up significant inventory at our corporate-owned aggregate operations to meet future demand. In addition to our aggregates business, we are extremely pleased with the positive results of the preliminary economic assessment for the Firebag project, and will continue development in 2015, targeting becoming a quality frack sand supplier to the oil and gas industry in Western Canada in 2016."

Operations update

Susan Lake sales volumes in 2014 of 7.5 million tonnes were 20 per cent lower than 2013. Demand levels were impacted by poor weather in the first half of the year and the impact of dropping oil prices in the last quarter of the year. Management maintained operations at historical levels, while continuing to clear land and strip topsoil, which should enable the corporation to maximize sales volumes in future periods.

Athabasca managed to increase aggregate sales volumes slightly from the corporate-owned pits in 2014 to 571,000 tonnes. In the latter half of 2014, Athabasca management implemented several cost improvement strategies, which enabled the corporation to produce gravel at a lower operating cost. By optimizing production levels at the crusher, labour requirements were reduced, and associated equipment hours were minimized, reducing maintenance and operational costs to ensure a higher-margin product going forward.

                             FINANCIAL HIGHLIGHTS
               (in thousands of Cdn $, unless otherwise noted)

                                               Thirteen months  Twelve months
                    Four months   Three months           ended          ended
                        Q4 2014        Q4 2013   Dec. 31, 2014  Nov. 30, 2013
Aggregate
management
fees                     $3,283         $2,884          $8,709        $10,419
Net aggregate
sales                    $6,396         $3,759         $17,623        $14,944
Total revenue            $9,679         $6,643         $26,332        $25,364
Gross profit             $3,105         $2,453          $6,287         $7,954
Net income and
comprehensive
income                      $12           $390          $(831)         $1,922
Total aggregate
tonnes sold
(MT)                  3,013,860      2,704,301       8,085,480      9,911,381
Basic income
per common
share
($/share)                $0.000         $0.014        $(0.026)         $0.068

Net (loss) during fiscal 2014 decreased to $(830,000) from a net income of $1.92-million in the prior year, a reduction of $2.75-million. There were four primary contributing factors: (1) a $1.71-million reduction in aggregate management fees resulting from a $1.8-million (or 20 per cent) reduction in aggregate tonnes sold from Susan Lake; (2) higher operating costs in the first half of 2014; (3) higher share-based compensation expense of $860,000 due to the non-cash expense booked on the options issued in 2014; and (4) higher general and administrative costs due primarily to potential acquisition due diligence, and additional expenses related to the development and analysis of the Firebag project.

Outlook

Aggregate operations

Corporate-owned pits

The corporation is well positioned from a resource and equipment base to increase production tonnes based on the successful award of contracts and overall demand in the target areas. Management continues to focus on further developing existing relationships with the major oil sands and SAGD operators, including continued analysis and exploration of new aggregate deposits.

Sales guidance for 2015 at the corporate pits is 500,000 tonnes. Management continues to strive for production optimization levels and tighter cost controls as it prepares for the heavy-demand aggregate season. Inventory was established in 2014 in core areas, which will allow management to quickly react to any sudden demand changes as the economy changes.

Capital spending in 2015 for the existing gravel operations is anticipated to be lower than previous years as the existing infrastructure allows management to meet the forecasted product demands.

The company has secured contracts for approximately 50 per cent of its production for 2015.

Susan Lake public pit

With the uncertainty in the region due to the drop in oil prices, sales from Susan Lake in 2015 have been forecasted for 6.5 million tonnes. While recognizing that the potential impact of lower oil prices could be significant, management believes that this projected tonnage is still appropriate and conservative, as it would be comparable with the 2009 annual sales volume recorded at Susan Lake.

Exploraton and development projects

Firebag silica sand project

The corporation's Firebag project is located 95 kilometres north of Fort McMurray and is accessible by Highway 63. The planned operation is for the production of industrial proppant for use in the fracking industry.

During August, 2014, the corporation received approval from the Alberta ESRD for an 80-acre SML for the development of a silica sand mining operation, which is the first phase of development of an overall 500-acre project. The corporation also received the completed technical report, disclosing an inferred mineral resource of approximately 45 million tonnes of silica sand within the corporation's Firebag property located in northeastern Alberta, Canada, approximately 95 km north of Fort McMurray. The technical report was filed, and is available for viewing, on the corporation's SEDAR profile.

A significant amount of testing was conducted on the Firebag project sand to verify the consistency of the silica sand at various depths within the deposit. Independent testing by both Stim-Lab Inc. and PropTester Inc. confirms a high-quality product, with crush strength meeting or exceeding API and ISO standards for frack sand. The preliminary economic assessment report is filed on SEDAR, and the press release "Athabasca Minerals' Firebag pretax NPV at $368-million" dated Feb. 12, 2015, will provide the detailed analysis and results.

Advancements on the transloading sites and detailed engineering are under way. Athabasca has been in active discussions with a major railway company and the regional municipality of Wood Buffalo in developing a private switch and transloading facility in Fort McMurray.

The corporation's second phase of development includes plans to develop a larger adjacent 420-acre SML for which applications have been submitted. The corporation holds 100 per cent of the rights to seven industrial and metallic mineral leases covering 12,800 hectares (31,629 acres) in the Fort McMurray region of northeast Alberta.

Resources have been allocated to advance the engineering surrounding the final plant design, complete permitting at both transloading sites and evaluate procurement opportunities on longer-lead-time items. The majority of capital spending in 2015 will be in relation to the Firebag project. Management is identifying cost-saving opportunities to reduce the initial capital estimates, and is looking at several options surrounding financing of the Firebag project, which includes joint venture, off-take arrangements and alternative financing options. Management has been able to finance the development of the Firebag project to date from its existing cash flow.

The corporation is committed to becoming a major domestic supplier of high-quality industrial proppant for use in the fracking industry as it actively pursue the development of its Firebag project.

The complete financial statements for Athabasca for the year ended Dec. 31, 2014, and management's discussion and analysis for the same period are available for viewing on the corporation's website and on SEDAR.

We seek Safe Harbor.