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Athabasca Minerals frac sand project approved


August 28, 2014
By Rock to Road

August 28, 2014, Edmonton, Alta. – Athabasca Minerals Inc. announced
that it has received approval from Alberta Environment and Sustainable Resource
Development (ESRD) for the right to work and remove sand from SML 130021 for a
term of 10 years commencing on August 25th, 2014.

August 28, 2014, Edmonton, Alta. – Athabasca Minerals Inc. announced
that it has received approval from Alberta Environment and Sustainable Resource
Development (ESRD) for the right to work and remove sand from SML 130021 for a
term of 10 years commencing on August 25th, 2014.

 

The 80-acre parcel (SML 130021) will provide several years
of raw silica sand resource to be utilized as frac sand in the oil and gas
industry. This 80-acre parcel is the first phase of development of the overall
500 acre Firebag Silica Sand Project. The Corporation has completed a number of
independent tests of the Firebag Projects silica sand demonstrating its use as
frac sand. Initial testing was completed in 2011 by Stim-lab Inc. of Duncan,
Okla., a recognized leader in the testing of proppants. Additional tests in
2014 undertaken by Stim-lab Inc. and PropTester, of Cypress, Texas,
another recognized leader in testing of proppants confirmed that the Firebag
Project Silica sand is suitable to be utilized as frac sand.

 

"We are extremely pleased to have received final
approval to move forward on the development of our Firebag Project. We commend
the Alberta government for recognizing the significance of the project that
will develop an Alberta resource for use by Western Canada's oil and gas
industry," said Dom Kriangkum, President and CEO of the Corporation.
"Through our analysis and discussion with end users, we believe that Athabasca
can become an Alberta based industry leader by supplying high quality local
frac sand to a growing Canadian market on a long term basis. Athabasca's
Firebag Silica Sand Project is located in close proximity to western Canadian
oil and gas exploration and development projects currently using frac sand from
suppliers outside of Canada."

 

The Corporation commissioned Mr. Mark Zdunczyk, CPG, a New
York based consulting geologist specializing in sand and aggregates, to conduct
a testing program on the Firebag property. The Corporation also retained the
services of Apex Geoscience Ltd. of Edmonton Alberta to complete a National
Instrument 43-101 report ("NI 43-101") to assess the Firebag resource
size. It is anticipated that this report will be completed in Fiscal 2014.

 

The Corporation retained NorWest Corporation of Calgary,
Alberta to complete a Preliminary Economic Assessment ("PEA") to
demonstrate the viability of the Firebag Project silica sand resource. The
Corporation is expecting the PEA to be completed during Fiscal 2014.

 

Athabasca has also been in active discussions with a major
railway company and the Regional Municipality of Wood Buffalo in developing a
private switch and transloading facility in Fort McMurray.