Ms. Cheryl Grue reports

ATHABASCA MINERALS INC. ANNOUNCES Q3 - 2023 FINANCIAL RESULTS, RESIGNATION OF DONALD PAULENCU AS DIRECTOR AND CHAIRMAN, AND UPDATE ON NOTICE OF INTENTION PROCESS

Athabasca Minerals Inc. has released its financial and operating results for the three and nine months ended Sept. 30, 2023, along with the associated management's discussion and analysis (MD&A). Donald Paulencu has tendered his resignation as director and chairman of the corporation.

Third quarter financial update

The financial results for the three and nine months ended Sept. 30, 2023, reflect the amendment and restatement of the 2021 and 2022 financial year-ends announced on Nov. 14, 2023. The corporation has determined that the investment in the AMI Silica LLC joint arrangement (Silica LLC) should be accounted for as a joint venture. The result of this amendment is that revenue, liabilities, assets and expenses, associated with Silica LLC, are now reflected as an investment on the corporation's balance sheet.

Third quarter business highlights

Athabasca Minerals reports the following key financial highlights for the three and nine months ended Sept. 30, 2023:

• Consolidated revenue, net of royalties, for the three months ended Sept. 30, 2023, was $300,000, versus restated consolidated revenues, net of royalties, of $4.6-million for the three months ended Sept. 30, 2022. The decrease in 2023 was due to lower revenues in RockChain, offset by increased aggregate sales from Coffey Lake. Consolidated revenue, net of royalties, for the nine months ended Sept. 30, 2023, was $2.0-million, versus restated consolidated revenues, net of royalties, of $10.4-million for 2022, with the decrease caused by decreased revenues in RockChain and the aggregates business.
• The company had an operating loss of $1.0-million in Q3 2023, versus a restated operating loss of $1.1-million in Q3 2022. While gross profit was higher in 2023, general and administrative expenses were higher as well. The company had an operating loss of $3.1-million for the nine months ended Sept. 30, 2023, versus a restated operating loss of $6.1-million for the nine months ended Sept. 30, 2022. The operating loss in 2023 was due to lower aggregate revenues and increased general and administrative expenses. The 2022 restated operating loss was due mainly to significant severance expenses and large writedowns, which included inventory, contract costs and resource properties.
• For the three months ended Sept. 30, 2023, the corporation reported a net loss of $2.6-million, versus a restated net loss of $700,000 for the three months ended Sept. 30, 2022. The net loss in 2023 was caused mainly by a $1.4-million share of loss from the AMI Silica LLC joint venture. For the nine months ended Sept. 30, 2023, the corporation reported a net loss of $5.1-million, versus a restated net income of $16.9-million for the nine months ended Sept. 30, 2022.
• For the three months ended Sept. 30, 2023, on a per-share basis, net loss was 3.4 cents basic and diluted, versus a restated net loss of 0.8 cent basic and diluted for the three months ended Sept. 30, 2022. For the nine months ended Sept. 30, 2023, on a per-share basis, net loss was 6.5 cents basic and diluted, versus a restated net income of 21.7 cents basic and 21.4 cents diluted for the nine months ended Sept. 30, 2022.
• On Oct. 30, 2023, the corporation executed a settlement agreement and mutual release with an independent arm's-length supplier. The agreement, valued at $375,000, is the result of extensive negotiations between the corporation and the supplier, and is aimed at resolving outstanding financial obligations. As part of the agreement, the corporation will transfer ownership of five non-core and non-cash generating resource properties, namely Cowper, Emerson, Hargwen, Pelican and Poplar Creek North, to the supplier. In addition to the asset transfer, the corporation will make a one-time payment of $60,000 to the supplier. The corporation estimates a gain of about $175,000 will be recognized on this transaction.

Corporate update

On Nov. 14, 2023, the corporation elected to pro-actively and voluntarily file for a notice of intention (NOI) to make a proposal pursuant to provisions of the Bankruptcy and Insolvency Act (Canada). The filing of the NOI had the effect of imposing an automatic 30-day stay of proceedings that will protect the corporation and its assets from the claims of creditors while the corporation pursues restructuring efforts. This 30-day period may be extended with the authorization of the Alberta Court of King's Bench and the corporation intends to seek such extension. The corporation will continue to provide further updates as developments occur.

The corporation announces that, effective Nov. 21, 2023, it has accepted the resignation of Mr. Paulencu as chairman and director of the board. Mr. Paulencu was appointed to the board of directors in 2015 and has served in his role with dedication and commitment to the corporation, and the company wishes him all the best in his future endeavours. The corporation will be identifying and evaluating alternatives with respect to the appointment of new independent directors to fill the recent vacancies.

About Athabasca Minerals Inc.

Athabasca Minerals is an integrated industrial minerals company focused on the production and delivery of frac 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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