Mr. Zig Vitols reports

SELECT SANDS REPORTS RESULTS FOR THIRD QUARTER 2023

Select Sands Corp. has released operational and financial results for the three months ended Sept. 30, 2023 (Q3 2023), and a discussion concerning the opportunities to expand the sale of the company's product offerings beyond the oil and gas industry. In addition, Select has filed its financial statements and associated management's discussion and analysis on SEDAR+. All dollar references in this release are in U.S. dollars.

Key highlights:

• Sold 43,081 tons of frac and industrial sand during Q3 2023 compared with 53,894 tons in the three months ended June 30, 2023 (Q2 2023), and 83,222 tons in the three months ended Sept. 30, 2022 (Q3 2022).
• Recorded revenue of $2.1-million and a gross loss of $200,000 in Q3 2023 versus $3.2-million of revenue and a gross loss of $100,000 in Q2 2023, and revenue of $5.4-million and gross margin of $700,000 for Q3 2022.
• Reported a net loss of $1-million, or one cent per share, in Q3 2023 compared with a net loss of $1-million, or one cent per share, in Q2 2023 and a net loss of $100,000, or nil per share, in Q3 2022.
• Generated an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) loss of $400,000 for Q3 2023 versus an adjusted EBITDA loss of $400,000 in Q2 2023 and adjusted EBITDA of $500,000 for Q3 2022.
• As of Sept. 30, 2023, cash and cash equivalents were $300,000, accounts receivable was $1-million, and inventory was $3.6-million.

Zig Vitols, president and chief executive officer, commented: "The reduction in sequential sales volumes reflects the continued evolvement of one of our largest customer's schedule of field development activities and previous product purchase obligations. In addition, we faced a challenging spot sales market that, along with other considerations, affected brokerage and transload opportunities at our flagship George West facility located in the heart of the Eagle Ford. While we expect this trend to continue through the fourth quarter, we have been pleased to recently see an uptick in orders albeit primarily for delivery beginning in the first quarter of next year. Also impacting sales volumes is the further evolution by the balance of the company's oil and gas customers to now primarily focus on our coarser-mesh product offerings. This provides the opportunity to market our finer-mesh sand products in alternative markets as we continue to serve the evolving needs of our highly valued base of loyal oil and gas customers."

Financial summary

The attached table includes summarized financial results for the three months ended Sept. 30, 2023, June 30, 2023, and Sept. 30, 2022, as well as for the nine months ended Sept. 30, 2023, and Sept. 30, 2022.

Select Sands sold 43,081 tons of frac and industrial sand during Q32 2023 compared with 53,894 tons in Q2 2023. Sequential quarterly sales volumes were primarily impacted by lower sales activity from the company's (historically) largest customer as its field development schedule continues to evolve, as well as a challenging spot sales market that, along with other considerations, affected brokerage and transload opportunities at the company's George West facility. As a result, sales volume levels for Q3 2023 were below the full shipment capability of the company's Arkansas's operations (approximately 150,000 tons per quarter). This presents the opportunity for continued improvement in sales volumes (and the ability to spread fixed costs over a wider base of tons produced) over time.

For Q4 2023, the company expects frac and industrial sand sales volumes of 25,000 to 40,000 tons. In addition to the impacts discussed previously, contributing to the expected decrease in sales volumes for Q4 2023 is anticipated seasonal holiday slowdown in customers' development activities. On a positive note, Select Sands has recently received an uptick in customer interest for products, although it is substantially for deliveries that will occur beginning in the first quarter of 2024.

Additional market opportunities

The company is continually reviewing potential acquisitions and joint venture transactions and opportunities that could enhance shareholder value. Recently, the company initiated a strategic move to introduce glass sand supply as a supplementary offering to bolster its sales in the petroleum sector. Previously, the company had maintained a singular focus on the petroleum sector, adapting to the fluctuations in demand for its diverse product range. The petroleum industry seems to have established preferences for specific products offered by the company, leaving room for the sale of other products in alternative markets. The glass industry has welcomed these products positively, and there is a vision that both sectors may embrace Select Sands' entire product range.

Outlook

Mr. Vitols further commented: "Over the past years, the petroleum sector has shown varying preferences, alternating between a propensity for predominantly fine or coarse sands supplied by the company. However, it appears that the industry -- or at least our current oil and gas customer base with development activities under way in the Eagle Ford -- has now shifted towards to primarily procuring the coarse fractions of our product range. In our commitment to our loyal oil field customers, we have consistently ensured a steady supply of both fine and coarse sand products in response to changing demands. The current trend, where the industry seems to clearly be settling on coarse fractions to support development in the Eagle Ford, presents an exciting opportunity for us to focus on two industries that consistently seek specific products offered by Select Sands. As a result, we are strategically adjusting our marketing efforts to now cater to both the petroleum and glass industries."

Mr. Vitols concluded: "We will remain squarely focused on continuing to serve the oil and gas industry, but given the continued evolvement in our current customers' requirement of coarser products, we are squarely focused on capitalizing on the recent enthusiastic reception from the glass industry regarding our fine sand product offerings. Given our capability to meet the stringent specifications of the glass industry, we are optimistic about the potential opportunity for future sales and market expansion for our complete product line. It's important to note that while these actions are not guaranteed, they underline the proactive steps we have taken in the past and will continue to take to further position the company in response to continued evolving market dynamics. We continue to have a positive outlook as we continue to capitalize on the potential opportunities afforded by our business. More important, we appreciate the continued support of our shareholders and look forward to keeping everyone apprised on our progress."

About Select Sands Corp.

Select Sands is an industrial silica product company, which wholly owns a Northern White silica sands property and related production facilities located near Sandtown, Ark. Select Sands' goal is to become a key supplier of premium industrial silica sand and frac sand to North American markets. Select Sands' Arkansas properties have a significant logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, Louisiana and New Mexico than the majority of sources of similar sands from the northern Midwest area such as Wisconsin. Select Sands also operates a transload facility in George West, Tex., in Live Oak county that serves customers operating in the Eagle Ford shale basin. The facility has a capacity for 180 rail cars and is equipped with two offload/loading stations with dedicated silos for a high-throughput capacity. In addition to transloading Select Sands products, the company sells other sand products from this facility and is able to offer transload services.

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