Athabasca Minerals Announces $2.7M USD Non-Dilutive Financing for Expansion of Frac Sand Operations and Enters into Investor Relations Agreement

Calgary, Alberta--(Newsfile Corp. - September 27, 2022) - Athabasca Minerals Inc. (TSXV: AMI) ("AMI" or the "Corporation") an innovative and integrated group of companies that develops and delivers sand and gravel products, technical services, and supply-chain solutions, is pleased to announce that its joint venture partnership, AMI Silica LLC ("Silica LLC"), has finalized a non-dilutive financing for $2.7 Million USD (the "Financing") to support expansion initiatives at its Hixton operations. The Corporation also announces that it has entered into an arms-length investor relations agreement (the "Agreement") with Boardmarker Group ("Boardmarker"), led by Mr. Dean Stuart.

AMI Silica LLC Financing

AMI Silica LLC has entered into a non-dilutive debt financing facility for $2.7 Million USD. Under the terms of this financing, the facility is backed by eligible equipment owned by AMI Silica LLC. This loan will mature on August 1, 2025 unless paid out at an earlier date.

Dana Archibald, AMI Silica LLC's President and AMI's Chief Executive Officer comments, "This funding will support AMI Silica LLC's expansion and growth strategy. As market demand continues to grow we are working on initiatives that will provide increased logistics capabilities to support the demand and provide added revenue streams. We have a strong customer base and are finding ways to grow strategically to satisfy their requirements."

The Board of Directors of AMI Silica LLC has approved, based on this new financing and the company's strengthened working capital, to repay a portion of the original shareholders loan to both partners. Both JMAC Energy Services LLC and AMI received a payment of USD$600 Thousand, equal to $800,500 Canadian dollars.

Investor Relations Agreement

The Corporation has signed an Agreement with Boardmarker Group to provide investor relations and communications services with a focus on shareholder engagement and strategic capital market outreach.

David Churchill, AMI's Chief Financial Officer states, "We are excited to bring Dean on board to support our Investor Relations initiatives and to bring greater outreach to the market, in addition to raising our profile with current and potential investors. Dean has a long history with the company, dating back to 2007, with a solid understanding of our assets as well as strong relationships with our shareholder base. We look forward to working with Dean as we continue to introduce a more focused and aligned organization, driven by the many opportunities that we have before us."

Under the terms of the Agreement, AMI will pay Boardmarker a monthly retainer, in the amount of $3,500, for an indefinite term. The Agreement may be terminated at any time, without penalty, by either party giving 30 days' notice. In addition, the Corporation will issue 75,000 stock options using the market price at close of trading on September 26, 2022 of $0.185 and an additional 25,000 stock options at a price that is $0.05 above the market price at close of trading on September 26, 2022 of $0.235.

The scope of these services will include communication with current and prospective shareholders, a market engagement strategy designed to introduce the Corporation to key banking and investment dealers, and supporting the Corporation on the development of external communications such as press releases, marketing materials and presentations. In addition, the Agreement allows for AMI to increase the scope of services, at its discretion, appointing Mr. Stuart as the primary investor relations contact for the Corporation, adding the tracking and reporting of key market data, and the participation of Mr. Stuart in key conferences and investor trips. As per the terms of the Agreement, if the additional services are added the monthly retainer increases to $5,000.

Upon execution of the Agreement 150,000 stock options will be placed in escrow and released pending Mr. Stuart meeting strategic targets that have been pre-determined. Upon the Corporation's share price trading above $0.30 for 10 consecutive trading days Mr. Stuart will be eligible to receive 50,000 stock options from escrow and upon the Corporation's share price trading above $0.40 for 10 consecutive trading days Mr. Stuart will be eligible to receive 100,000 stock options from escrow.

All stock option issuances are subject to applicable stock exchange approvals and shall be made in accordance with applicable securities legislation and as per the terms of the Corporation's stock option plan. As per the Corporation's stock option plan, options will vest over a period of eighteen months with one third vesting at six months, another third vesting at one year and the final third vesting at eighteen months.

ABOUT ATHABASCA MINERALS INC.
Athabasca Minerals is an integrated group of companies capable of full life-cycle development and supply of aggregates and industrial minerals. The Corporation is comprised of the following business units:

• AMI Silica division (www.amisilica.com) is a leading supplier of premium industrial sand with operations in Wisconsin and regional deposits located in Alberta and North-East BC, currently in the development phase.
• AMI Aggregates division produces and sells aggregates out of its corporate pits and manages the Coffey Lake Public Pit on behalf of the Government of Alberta.
• Métis North Sand & Gravel (www.metisnorthrocks.com) is a strategic partnership between Athabasca Minerals Inc. and the McKay MetisGroup to deliver aggergates to the energy, infrastructure, and construction sectors in the Wood Buffalo region.
• AMI RockChain division (www.amirockchain.com) is North America's largest platform for buying, selling, and transporting gravel, sand, and other surface materials. It is a technology-enabled business that deploys its proprietary RockChain™ digital platform, associated industry econometrics, supply-chain algorithms, quality-assurance & safety programs to bring customers integrated supply-delivery solutions of industrial minerals to industry, infrastructure and construction sectors.

For further information, please contact:
Cheryl Grue, Director, Corporate Affairs
Tel: 587-392-5862 / Email: cheryl.grue@athabascaminerals.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING STATEMENTS
This news release contains certain statements or disclosures relating to Athabasca that are based on the expectations of its management as well as assumptions made by and information currently available to Athabasca which may constitute forward-looking statements or information ("forward-looking statements") under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Athabasca anticipates or expects may, or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words "would", "will", "anticipates", believes", "explores" and similar expressions. Athabasca believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.
Readers are cautioned not to place undue reliance on these forward-looking statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Corporation does not undertake any obligation to update or revise any of the forward-looking statements, except as may be required by applicable securities laws.
Additional information on these and other factors that could affect the Corporation's operations and financial results are included in this news release and may be accessed under Athabasca's profile on SEDAR at www.sedar.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/138510