Mr. Dana Archibald reports

ATHABASCA MINERALS ANNOUNCES Q2 2023 FINANCIAL RESULTS AND POSTPONEMENT OF SHAREHOLDER MEETING DATE

Athabasca Minerals Inc. has released its Q2 financial statements for the second quarter ending June 30, 2023. The Q2 2023 financial statements and management's discussion and analysis are available on SEDAR+ and on the corporation's website.

Q2 2023 highlights:

• Signed multiyear transload agreement for the delivery of silica sand into the Grande Prairie, Alta., region;
• Signed an 18-month sand supply agreement with a leading North American oil field services firm for a total minimum commitment of 360,000 tons, subject to pricing adjustments;
• Closed a definitive sale agreement with an arm's-length purchaser to divest of certain non-core assets within the aggregates division for total cash consideration of $3.2-million (Canadian);
• Canaccord Genuity continued the exploration of strategic alternatives for the corporation.

Q2 2023 financial results

In the second quarter of 2023, Athabasca reported consolidated revenue of $14.4-million (compared with $7.5-million in Q2 2022), a gain of 92 per cent, driven mainly by increasing revenue from industrial sand. Industrial sand revenue was $13.0-million, which is 90 per cent of reported consolidated revenue. Total comprehensive loss in Q2 2023 is $606,145, versus a total comprehensive loss of $4,770,632 in Q2 2022, an improvement of $4,164,487. Athabasca recognized a gross profit of negative $453,272 in Q2 2023, versus gross profit of negative $401,098 in Q2 2022. The corporation incurred a depreciation, depletion and amortization (DDA) expense of $1,306,036 in Q2 2023, versus a DDA expense of $1,012,177 in Q2 2022.

Dana Archibald, chief executive officer, states: "AMI Silica LLC's transload network has proven to be a key part of the corporation's sales growth over the last several months. We are seeing higher demand for our sand despite the challenges that we faced throughout the second quarter, including wildfires, rail outages and floods. April and May of this year proved to be extremely challenging throughout our industry, and Silica LLC was no exception, however, we saw a healthy rebound in June. In addition, the recent disposition of non-core assets in Alberta provides AMI the opportunity to allocate resources to focus on our sand assets in both Canada and the U.S."

Annual general and special meeting update

The corporation received an order from the Court of King's Bench of Alberta pursuant to the Business Corporations Act (Alberta), allowing the corporation to extend the time in which the next annual meeting of Athabasca shareholders will be held. The court granted an order extending the time for the corporation to hold the meeting until on or before Dec. 31, 2023. The meeting had previously been scheduled for Sept. 21, 2023.

On March 28, 2023, the corporation announced that it initiated a process to evaluate potential strategic alternatives intended to maximize shareholder value. As part of the process, the corporation's board of directors is considering a full range of strategic alternatives, which may include financing alternatives, a merger, amalgamation, plan of arrangement, consolidation, reorganization or other business combinations, and other alternatives intended to increase shareholder value.

The consummation of a transaction as part of the process may require shareholder approval at a special meeting of shareholders, pursuant to one or more provisions of the act, applicable securities laws, and the policies of the TSX Venture Exchange. In order to conserve its financial and human resources, the corporation plans to hold the meeting concurrently with the potential special meeting, if any, to the extent that such potential special meeting would be held on or prior to Dec. 31, 2023.

The corporation will file an amended notice of meeting on SEDAR+ when a new meeting date has been chosen.

We seek Safe Harbor.