Mr. Zigurds Vitols reports

SELECT SANDS PROVIDES UPDATE ON BANK FORECLOSURE ACTIONS

Select Sands Corp. is issuing an update regarding the company's status. As previously disclosed in the company's April 29, 2024, and July 22, 2024, news releases, the company's normal operations have been shut down and the company's primary lender, First Community Bank, issued a demand letter threatening foreclosure of the company's collateralized assets if the company did not make loan payments that were past due by Aug. 1, 2024. Since receiving notice from the bank of its intent to foreclose on its loans, the company has been unable to generate revenue while facing continuing challenges. The company entered into discussions with various entities that might be interested in purchasing the company's sand business, but was unable to reach an agreement with any of the parties before the foreclosure deadline.

On Oct. 2, 2024, foreclosure proceedings were initiated by the bank resulting in the transfer of control over all physical assets of the company. The physical assets were subsequently auctioned on the same day by the bank to repay the outstanding debt of almost $12-million (U.S.). The company is waiting for confirmation from the bank of the outcome of the auction which may take up to 90 days.

At present, the company is not operating and is without cash reserves. The company is evaluating its options concerning any non-physical assets it may still possess. The company notes that its U.S. subsidiary, Select Sands America Corp., has substantial tax loss carryforwards that may be of value to a potential U.S. buyer in a similar business to the company, should the subsidiary be able to fully satisfy its creditors.

As previously announced on May 13, 2024, the company remains subject to a cease trade order against the company effective May 8, 2024, issued by the British Columbia Securities Commission, for failing to file audited annual financial statements, management's discussion and analysis, and annual certifications for the year ended Dec. 31, 2023, within the time period prescribed by securities laws.

We seek Safe Harbor.