Mr. Dana Archibald reports

ATHABASCA MINERALS ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Athabasca Minerals Inc. has released its financial results for the first quarter ended March 31, 2023. The Q1 2023 financial statements, management's discussion and analysis, as well as the chief executive officer certification and chief financial officer certification (together the Q1 financials) are available on SEDAR and on the company's website.

In an effort to adapt to changing market dynamics and capitalize on emerging opportunities, Athabasca Minerals has implemented a comprehensive business refocusing plan. This strategic shift has involved reevaluating core competencies, streamlining operations and realigning resources to ensure sustainable long-term growth.

Increased demand for Athabasca Minerals's sand products has been instrumental in driving revenue growth in the first quarter. Revenue of $12.9-million for Q1 2023 is an 85-per-cent increase from the previous year's comparable quarter revenue of $7-million. The corporation continues to identify and implement operational and production efficiencies that are anticipated to positively impact future profitability.

"Our Q1 earnings report reflects the ongoing efforts and commitment of our team as we navigate through this period of refocusing and alignment," said Dana Archibald, chief executive officer of Athabasca Minerals. "While we are aware of the current challenges, we remain confident in our strategic plan to create value for our shareholders. We are steadfast in our commitment to delivering premium sand products, expanding market reach and capitalizing on emerging opportunities that will fuel our future growth."

Business highlights

Athabasca Minerals reports the following key financial highlights for Q1 2023, the three months ended March 31, 2023:

• Consolidated revenue, net of royalties, for Q1 2023 was $12.9-million versus $7-million for Q1 2022, driven by increased demand for industrial sand in AMI Silica LLC. The United States sand mine and facilities in Hixton, Wis., was acquired in February, 2022, so revenue for Q1 2022 was lower, as operations had just started, and Q1 2023 has a full three months of operations in comparison.
• An operating loss of $1.3-million in Q1 2023 versus operating income of $200,000 in Q1 2022. The increase in loss was due to increased operating expenses, and increased depreciation expense of $1.2-million resulting from the acquisition of the U.S. sand mine and facilities in Hixton, Wis., in February, 2022, and increased general and administrative expenses, and severance of $200,000.
• For the three months ended March 31, 2023, the corporation reported a net loss of $1.7-million versus net income of $22.6-million for the three months ended March 31, 2022. Net income in Q1 2022 was driven by a $22.3-million gain recognized on the Hixton sand mine acquisition.
• For the three months ended March 31, 2023, the corporation reported a total comprehensive loss of $2.6-million versus total comprehensive income of $22.3-million for the three months ended March 31, 2022.
• For the three months ended March 31, 2023, on a per-share basis, total comprehensive loss was 3.3 cents/share, basic and diluted, versus total comprehensive income of 28.9 cents/share, basic, and 28.4 cents/share, diluted, for the three months ended March 31, 2022.

Key operational highlights:

• On Feb. 28, 2023, the corporation announced a $2-million bridge loan secured through JMAC Energy Services LLC, the proceeds being used to pay off the existing loan with Canadian Western Bank (CWB) and for general working capital purposes.
• On March 28, 2023, the corporation announced that its board of directors, together with the support of management, has initiated a process to evaluate potential strategic alternatives to maximize shareholder value. As part of the process, the board is considering a full range of strategic alternatives, which may include financing alternatives, merger, amalgamation, plan of arrangement, reorganization, other business combinations, sale of assets or other transactions. There can be no assurance that the evaluation of strategic alternatives will result in any strategic alternative, or any assurance as to its outcome or timing.
• On April 5, 2023, AMI Silica LLC (AMIS) signed a multiyear transload agreement for the delivery of its silica sand into the Grande Prairie, Alta., region. In addition, AMIS signed an 18-month sand supply agreement with a total minimum commitment of 360,000 tons, subject to pricing adjustments.

Financial and operational highlights

About Athabasca Minerals Inc.

Athabasca Minerals is an integrated industrial minerals company focused on the production and delivery of frack sand to Canada and the United States. Athabasca also operates aggregate operations in Western Canada, and maintains the largest platform for buying, selling and transporting of aggregates through its 100-per-cent-owned technology platform, AMI RockChain.

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