Mr. Glenn Leroux reports

CANADIAN PREMIUM SAND INC. ANNOUNCES STRATEGIC REVIEW

In light of emerging opportunities and the growing demand for silica sand for use in multiple industry applications, Canadian Premium Sand Inc. has initiated a review of strategic alternatives to identify opportunities to maximize shareholder value by capitalizing on the company's strong intrinsic value.

The strategic review has been unanimously approved by the company's board of directors and it has the full support of the company's management and significant shareholders. It may include, among other alternatives, a merger, business combination, partnership, joint venture, strategic alliance, sale of the company or a portion of its assets, an equity or debt financing to finance the development of the company's sand resource and/or glass manufacturing facility, or a corporate reorganization as well as continuing to execute on the company's stand-alone strategic plan. A special committee of the board comprising the independent directors has been established to oversee the strategic review.

"As we seek to close the persistent gap between CPS's capital market valuation and the company's sum-of-the-parts intrinsic value, the board has unanimously authorized, with the support of CPS's largest shareholders, a comprehensive review of strategic alternatives," said Canadian Premium Sand president and chief executive officer Glenn Leroux. "We are approaching this process with clarity, discipline and an open mind, assisted by our financial advisers and guided by our commitment to maximize shareholder value. This is a pivotal moment for CPS -- one that allows us to evaluate all paths forward."

The company has generated significant intrinsic value and project development options over the past several years. The company's core asset is a 42.3-million-tonne measured and indicated silica sand resource suitable for fracture proppant and other industrial applications, with a subset of that resource containing 24.4 million tonnes of low-iron silica sand inferred resource suitable for production of solar-grade glass and other glass products, as outlined in the company's National Instrument 43-101-compliant technical report issued April, 2025. To support development of this resource, the company secured environmental act licence (EAL) 3285R from the province of Manitoba for the extraction, processing, transportation and sale of its Wanipigow silica sand for oil and gas and industrial purposes. The company also secured EAL 3401 for the construction and operation of a 1,200-tonne-per-day solar glass manufacturing facility. To provide additional development options, the company is investigating the ability to utilize EAL 3401 or an alteration to EAL 3401 for production of architectural float glass for use in residential and commercial construction.

The board and management team are firmly united in their commitment to a transparent and deliberate process. The company will communicate material developments with all shareholders when and if appropriate or required.

In the interim, shareholders can be confident that Canadian Premium Sand's leadership and staff will be retained and incentivized during this exciting time for the company and will continue to have a dedicated focus on Canadian Premium Sand's strategy and the company's unwavering commitment to the day-to-day business operations.

In connection with the strategic review, the company has engaged ATB Cormark Capital Markets as its financial adviser and Burnet Duckworth & Palmer LLP as its legal counsel.

Canadian Premium Sand cautions that the engagement of financial and legal advisers should not be viewed as an indication that any specific process or transaction will be pursued. There can be no assurances that the strategic review will result in any specific action, transaction or agreement or, if a transaction is undertaken, as to its timing, completion or terms. The strategic review has not been initiated as a result of receiving any transaction proposal. The company has not established a definitive timeline to complete its review and no decision on any particular alternative has been reached at this time.

About Canadian Premium Sand Inc.

The company is developing its Wanipigow silica sand resource in Manitoba to supply fracture proppant to the Western Canada sedimentary basin, along with other applications for high-purity and low-iron silica sand, including the manufacture of solar and float glass. The company is a reporting issuer in Ontario, Alberta and British Columbia. Its shares trade on the TSX Venture Exchange under the symbol CPS.

We seek Safe Harbor.