45
Seymourville Frac Sand Project in Manitoba (Canada) January 2014

Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

  • Upload
    dinhnga

  • View
    227

  • Download
    9

Embed Size (px)

Citation preview

Page 1: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Frac Sand Project

in Manitoba (Canada)

January 2014

Page 2: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Disclaimer

This presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for

any securities in Claim Post Resources Inc. (“Claim Post”), nor shall it or any part of it form the basis of, or be relied on

in connection with, or act as any inducement to enter into, any contract or commitment whatsoever. No reliance may

be placed for any purpose whatsoever on the information or opinions contained in this presentation or on any other

document or oral statement or on the completeness, accuracy or fairness of any such information and/or opinions. No

undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of Claim

Post or any of its respective directors, employees or advisers, as to the accuracy or completeness of the information or

opinions contained in this presentation, and (save in the case of fraud) no responsibility or liability is accepted by any of

them for any such information or opinions or for any errors, omissions, misstatements, negligence or otherwise

contained or referred to in this presentation.

The slides and the accompanying verbal presentation are confidential and the slides are being supplied to you solely for

your information and may not be reproduced or distributed to any other person or published, in whole or in part, for any

person. The slides contain forward-looking statements, including in relation to Claim Post’s proposed strategy, plans

and objectives. These forward looking statements are applicable only at the date of this presentation. Such forward

looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of

Claim Post that could cause the actual performance or achievements of Claim Post to be materially different from such

forward-looking statements. Accordingly, you should not rely on any forward-looking statements and Claim Post

accepts no obligation to disseminate any updates or revisions to such forward-looking statements.

2

Page 3: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Strategic Acquisitions and Partnerships

1. On April 16, 2013 Claim Post completed the acquisition of 428 hectares of silica sand quarry

leases located on the east shore of Lake Winnipeg, 200 km NE of Winnipeg, Manitoba. The

purchase price was $1,500,000 in cash(paid) plus a $1.00 per tonne production royalty for frac

sand and $.50 per tonne on other products to Char Crete Ltd.

2. On June 25, 2013 Claim Post completed an option agreement to purchase the 9 contiguous

silica sand quarry leases (306 hectares) from Gossan Resources Limited. The purchase price

was $1,1300,00 cash (payable in 3 instalments every 6 months from June 2014 to June 2015)

and 3 million Claim Post common shares (1 million issued), plus a $1.00 per tonne royalty for

frac sand and $0.50 per tonne on other products.

3. Claim Post has now consolidated the Char Crete and Gossan leases into a single silica sand

deposit totalling 734 hectares, the “Seymourville Frac Sand Project.”

4. Claim Post has met with representatives of Hollow Water First Nation and representatives from

the villages of Manigotagan and Seymourville. Hollow Water and Seymourville have expressed

a desire to joint venture with Claim Post. A draft MOU is in progress.

5. Claim Post has retained P&E Mining Consultants to complete a NI 43-101report using the

Manitoba Government and Gossan drill data which covers about 10% of the total quarry leases

area of 734 hectares.

3

Page 4: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Frac Sand Project - Location

4

Black Island

Historical Quarry

Sand Leases

Located 6 km from paved highway and 200km trucking

distance to Winnipeg

White Silica Sand

Black Island

Winnipeg

Seymourville Project

Page 5: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Drilling by Manitoba Government – 1981-1989

5

Char Crete

Gossan

Page 6: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Horizontal Drilling – Multiple Fracking

6

Page 7: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

US Oil Industry Drives the Frac Sand Market

7

Key Driver for Demand: Race to North American Self Sufficiency

Page 8: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

US Market - Projected Frac Sand Demand vs

Projected Shale Oil Production

8

80-100mt

Estimated

60-80mt

40mt

Actual

31mt

Actual

22mt

Frac Sand

Actual Consumption

of 12 million tons in

2010

Source: Hart Energy Graph - Calgary DUG Conference 2013.

Note: Frac sand tonnage above is plotted only against shale oil production, and excludes

sand demand from an equal amount of millions/BTU of natural gas produced on average from those shale oil wells

Page 9: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Canadian Market – Projected Frac Sand Demand vs

Projected Oil & Natural Gas Production

9

50%

oil

& L

iquid

s +

50%

NG

10mt

7.5mt

2.5 mt

5mt

Hart Energy Graph

Page 10: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Frac Sand Market – US Tonnage Growth

10

0

5000000

10000000

15000000

20000000

25000000

30000000

To

ns

Consumption

(million tons)

2009 6.5

2010 13.0

2011 22.0

2012 31.0

2013 38.0

2017 (estimate) 60.0

2020 (estimate) 100.0

Supply

-Total US frac sand in 2013: 38 million tons for 2.7 million barrels/day new shale oil

- U.S. production comes from Wisconsin (75%), Oklahoma and Texas (25%)

- Wisconsin has 140 frac sand mines in production, 30 processing plants.

- Most mines have $30 to $40 per ton costs loaded on rail or barge.

-The oil industry uses coarser sand, 20- 40, 30 - 50 and 40 - 70 mesh sizes.

-The NG industry uses finer sand 40 -70 and 100 mesh (70-140 mesh) sizes.

Page 11: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Encana - Horn River Basin – Natural Gas

More Fracking - Higher Cash Flow

11

Note: each stage uses 150t of frac sand, now up to 40 fracks

Page 12: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Fracking - Types of Proppants

• Manufactured Proppants - Ceramics >$500t

• Resin Coated Proppants - usually sand $300 to $500t

• Natural sands - RBC BMO long term estimates $90t*

– Ottawa White – Illinois, Wisconsin, Minnesota

– Seymourville White – Manitoba

– Hickory or Brown Sand – Minnesota, Texas

12 (*) BMO and RBC long-term forecasts

Page 13: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Proppant History Review

Sand, 80%

Resin Coated,

10%

Ceramics, 10%

Barnett RCS

Ceramics

1st Frac Job

13

Canadian Imports

Blue color 57

Page 14: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

API - ISO 13503-2 for Frac Sand Include

• Roundness > 0.6

• Sphericity > 0.6

• Clusters

• Acid Solubility < 2%

• Turbidity < 250 FTU

• Bulk Density

• Specific Gravity

• Crush strength

• K – Value

14

Page 15: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Gossan PropTester API Test Results

15

Sample Correlation

+0 to 8.999% Variance

ISO & Published Data

Sample Correlation

+9 to 25% Variance

From ISO & Published

Quick Check

ISO

13503-2 Manitoba #155720A

Turbidity (NTU) < 250 4

Krumbein Shape Factors

Roundness > 0.6 0.6

Sphericity > 0.6 0.7

Clusters (%) < 1.0 0

Bulk Density (g/cc) 1.51

Bulk Density (lb/ft3) 94.6

Specific Gravity (g/cc) 2.63

Particle Size Distribution mm Mesh size

0.600 30 < 0.1 0

0.425 40 0.1

0.355 45 18.2

0.300 50 17.4

0.250 60 38.1

0.212 70 24.6

0.150 100 1.6

< 0.150 PAN < 1.0 0

Total 100

In Size -40+70 > 90 98.3

Median Particle Diameter, MPD, mm 0.286

Solubility: 12/3 HCL/HF, 0.5 HR, @ 150 °F, % Wt Loss < 3.0 1.2

pH of Water Extract 8.3

API Crush Analysis, wt.% fines @ 5,000 psi < 8 5.4

ISO Crush Analysis, wt.% fines @ 9,000 psi < 10 9.8

ISO Crush Analysis, wt.% fines @ 10,000 psi < 10 10.4

Source: Qualifying Fluid & Proppant Performance – Nov 20, 2009 – Prepared for Gossan Resources Limited by

PropTester Inc.

Sample Correlation -25 >

X > +25% Variance From

ISO & Published

API Testwork

ISO Proppant Analysis 40/70 mesh

PropTester Sample

ISO 135003-2 for frac sand

Roundness >.6

Sphericity >.6

Strength > 9000psi

Acid Solubility < 2%

Turbidity < 250 FTU

Bulk Density

Specific Gravity

K – Value

Page 16: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Sand Deposit – Meets API Guidelines

1. There are many sand deposits in the US and Canada, but very few

meet the rigorous specifications set out by the American Petroleum

Institute (API) as Frac Sand to be used in Hydraulic Fracturing.

2. The specs include crush resistance, roundness and sphericity,

chemical resistance and the amount of fines allowed above and

below the specific mesh size, a few % fines sludge up the hole.

3. Gossan Resources Ltd. (GSS.V) has conducted PropTester API –ISO

tests on samples from its Manitogan Silica Sand Deposit now part of

Claim Post’s Seymourville Frac Sand Project; meets API guidelines

for Frac Sand.(www.gossan.ca)

4. Gossans' test results consistently received ISO 8K or 9K Proppant

ratings for the 20-40 and 30-50 mesh fractions and ISO 9K Proppant

ratings for 40-70 and 70-140 (100 mesh) mesh fractions. The sand is

also well rated in Long Term Conductivity tests. (Gossan Press

release June 25th, 2013)

16

Page 17: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Western Canadian Market for Frac Sand

Seymourville

Project - Manitoba

17

Page 18: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Frac Sand Deposit - Main Market

18

Page 19: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Frac Sand Demand – Light Oil Fracking

19

Alberta and Saskatchewan increased light and medium oil 200,000B/d in 2012

556,000 B/D

2012 actual

+150kB/d

Page 20: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Manitoba Oil Industry Facts - 2012

• Produced 15,000 barrels per day - 2010

• Produced 50,000 barrels oil per day - 2012

• 4,365 producing oil wells

• 614 wells drilled in 2012 of which 566 were horizontal wells

• 506 wells produced oil

• There are 510 disposal wells for salt water

• Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total

of 80,000t of frac sand imported into Manitoba

• Estevan Bakken area – 800 wells – 120,000t sand

• US Bakken – Main Seymourville coarse sand market - 2,000 wells x

3,000 t/well, or an estimated 6 million tons of sand/year

• Claim Post plans to market 100,000 tons coarse sand from its

Seymourville Deposit to the Bakken area, based on an initial 400,000

tpy plant to be built.

20

Page 21: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Container – Trucking Distance to Bakken

Bakken

Seymourville Frac Sand

Project - Manitoba

Seymourville to Fort

Nelson: 2,500 km by CN Rail

for Montney, Liard and Horn

River Basins

Seymourville to Bakken oil

play - 700km

Bakken oil700 KM

Wisconsin (75% of all US frac

sand comes from a single

sandstone horizon) is 1,000

km further to Western

Canada than Seymourville

Project.

21

Page 22: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Bakkens – Frac Sand Treadmill

22

Page 23: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Frac Sand Demand – Feeding LNG Plants

Frac Sand Demand Increasing

LNG

Apache

Chevron

2015

LNG

Shell

2019

23

Page 24: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Frac Sand Projects in Canada – Very Few

24

Name Capacity Location Status

Moberly – expansion of

silica glass mine

300,000 tpy

(welded sandstone

deposit)

Golden (BC) Feasibility - $30 million

2014 start up

Claim Post (Seymourville

Frac Sand Project)

400,000 - 1,200,000

tpy (sand deposit)

on surface

Seymourville

(Manitoba)

43 -101 Resource Drilling,

Permitting, 2 years to

production, 2015 target

Athabasca Minerals 1,000,000 tpy

(dune sand deposit)

Fort McMurray

(Alberta)

Light rail, high trucking cost,

high Capex ,

Victory Nickel 300,000 tpy plant

Sand deposit - under

60m of solid rock

Medicine Hat

Northern

Manitoba

Mine Capex: $100m pre

strip for frac sand, nickel

zone below needs $12 NI

Stikine – Angus Project

- Nonda Project

Hanson Lake Sands

(Surrounds Winn Bay)

1,000,000 tpy

1,000,000 tpy

(welded sandstone)

800,000 tpy

Prince George,

Nelson (BC)

West of Flin Flon

Capex: C$314 million

Capex: C$496 million

Diesel power, 4:1 stripping

ratio, remote

Sources: Companies Press Releases - SEDAR

Page 25: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Black Island Silica Sand Profile

25

Page 26: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Phase 1 – Area for Initial NI 43-101 Report

26

Gossan

Drilling

Gossan Drilling 40 Sonic holes

10.1m thick silica sand

Page 27: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Phase 2 - 1000m Drilling Program for Global

Tonnage

27

Complete Mining

Rehabilitation Plan

has to be filed to

get mining permit

Page 28: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Phase 3 – Detail Drill Program Near

Proposed Plant site

28

Page 29: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

What Seymourville Quarry Will Look Like

29

Page 30: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Proposed Drill Programs for NI 43-101 Updates

Sand within a flat hill (1)

Top of flat hill

Lake Winnipeg

Bedrock; below silica sand

Sand - thickest area

Gossan average – 41 holes

Sand – edges of deposit

Drilling program:

Phase 1 - NI 43 101 based on

Gossan drill data

Phase 2 – Global Tonnage

Phase 3 – NI 43-101 Updates

Drilling Cost for Sonic: $100 to

$150 per meter

2 km x 3 km area to be drilled

– 250 ml (meter level) contour line

– 218 ml water elevation

– 225 ml – 7m above Lake Winnipeg

– 17.3m (within 250ml contour line)

– 10.1 meters thick silica sand

– 6.3m thick ~ 240ml contour line

– 25m depth - 400m & 100m centers

– 40 holes – 1,000 meters

– 40 holes – 1,000 meters

30

(1) See Seymourville Frac Sand Deposit slide for elevation contour lines

Page 31: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Deposit – Proposed Mining Phases

• Total area: 734 hectares or 1,600 acres

• Plant site, stockpiles & roads – 40 acres

• Mining cells – 40 acres each, total 40 cells

• Mining Cycle - 160 acres per mining phase (4 cells per phase)

• 40 acres mining, 40 acres being rehabilitated, 40 acres water, clay and

shale storage,, 40 acres next phase

• Manitoba Permitting – up to 2.4 million tpy – 40 year plan

• Phased increases – 400,000 tpy initial to 1,200,000 tpy initial

• Phased expansions to 1.2 or 2.4 million tpy

• Products: frac sand, fine silica products, kaolin clays

• Potential for frac sand resin plant or plated-glass plant

31

Page 32: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Deposit – Proposed Mining &

Processing

Mining: 6 summer months of the year

– Loose sand, shallow overburden

– Remove trees (firewood) and strip glacial till materials

– Backhoe and truck operation or slurry pump to plant

– Haul (pump) sand to plant

– Wash clay from sand, cyclone to remove fines

– Wet screen, stockpile 50% of tonnage for winter processing

Processing and Transportation: 12 months per year

– Feed wet sand to dryer, magnetic separator

– Dry screen sand after drying to frac sand size ranges

– Sized frac sand conveyed to individual bins; weight scale below

– Truck sand to Winnipeg – 200km, 3600t storage at rail site

– Load unit trains – 100 cars, 100t per car – 10,000t per train

– Ship by CN, CP or BNSF rail from Winnipeg site

– Truck Containers to Manitoba Bakkens oil plays - 500km

32

Page 33: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Deposit – Proposed Plant of

200,000 to 400,000 tpy Capacity

33

Page 34: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

CentrePort Rail Yard - Winnipeg

34

Page 35: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Unit Trains CN, CPR, BNSF, Winnipeg

35

3600t

Storage

Designed

Page 36: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Rail 40/70 &100mesh to Fort Nelson – LNG Market

Rail Distances (CN Rail)

Claim Post

Winn Bay

36

Peace River 600 km

Winn Bay 2,200 km

Claim Post 2,500 km

Wisconsin 3,500 km

Railroad freight rates are ~ $0.04 per

ton km based on unit trains of 100,

100 ton railroad cars.

Claim Post’s freight advantage is at

least $40.00 per tonne over sand

imports from Wisconsin by CN

Winn Bay: same overall cost/t as

Claim Post to Fort Nelson but more

trucking distance (approximately

$100 tonne)

Page 37: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Comparative Analysis - Freight Advantage

ALBERTA

Winn Bay or

Seymourville

ProjectTEXAS

NEBRASKA

WISCONSIN

(in $/tonne) Low High Low High Low High Low High

Mining & Processing Costs $65 $65 $50 $50 $50 $50 $40 $40

Margins Earned at Mine Gate $10 $25 $24 $39 $18 $48 $10 $29

Price Charged at Mine Gate (1) $75 $90 $74 $89 $68 $98 $50 $69

Freight to Fort Nelson $100 $100 $96 $96 $165 $165 $171 $171

Handling to Well Site $50 $50 $63 $63 $59 $59 $59 $59

Margins Earned on Final Delivery $10 $25 $10 $25 $10 $40 $10 $29

Delivery Price (FOB Fort

Nelson) $235 $265 $243 $273 $302 $362 $290 $328

Total Margins (Mine Gate &

Delivery) $20 $50 $34 $64 $28 $88 $20 $58

(1) Claim Post's Seymourville Frac Sand Project would have similar economics to the Winn Bay Deposit in Saskatchewan

(2) RBC 2013 Price Estimate $90 per ton of frac sand

Source: www.stikineenergy.com37

Page 38: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

CN & CPR - Rail Frac Sand to Canada

38

Seymourville Project

Wisconsin

Page 39: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Winn Bay Mine - Hanson Lake (Saskatchewan)

39

The location of the Seymourville Project would give it the same freight savings as Winn Bay

Source: Talisman DUG 2013 Calgary Logistics Slide

Page 40: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Forward Sales Sand to LNG Market Players

40

Source - Company Reports BMO Capital Markets - ARC Financial Corp

Page 41: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Share Capital

Shares Issued and Outstanding: 95,092,164

Warrants Outstanding (prices between $0.10 and $0.15 expiring in 2014 and 2018): 48,882,983

Options (prices between $0.10 and $0.25 expiring in 2018): 4,050,000

Fully Diluted 148,025,147

Share Price (“CPS” on TSX V):

Recent (January 2014): $0.05

52 week low-high: $0.025- $0.07

Principal Shareholders:Management and Directors 20.01%

John Assman 14.24%

David Wilson 10.52%

41

Page 42: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Liquidity and Work Program

Cash Position (January 2014) $1,000,000

Phase 1 Work Program for 2014:

Drilling (1,000m) and additional API test work $ 200,000

NI 43 101 Report and Scoping Study $ 150,000

Lidar Survey, Engineering and Permitting $ 150,000

G & A, Marketing (1 year) + 10 % contingency $ 500,000

Total $1,000,000

Proposed Additional Financing - Up to 20 million Units at $0.05/Unit $1,000,000(Each Unit consists of 1 common share and 1 warrant which has a strike price of $0.10 and a 3-year term to maturity)

Proposed Uses of Proceeds – Phase 2 Work Program for 2014:

Drilling (1,000m) $ 200,000

Prefeasibility Study $ 300,000

Marketing $ 100,000

Site Work, G&A and contingencies $ 400,000

Total $1,000,000

42

Page 43: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Officers and Directors

Charles Gryba – President, CEO, Director

• Over 40 years experience in gold and base metal exploration plus mining both open pit and underground experience. Patented and now mine proving the DPM mining method with Penoles. President of both TSX and TSX venture companies for past 25 years – extensive experience in raising money for mineral projects. Set up the mining organizations; permitted and started 2 mills and 4 mines in the past 10 years. Industrial minerals experience with talc, magnesite, niobium and tungsten; studied frac sand extensively for past 2 years.

Directors:

John Assman - President CEO Landtran Logistics

Joel Schneyer - Senior Banker Headwaters MB (Denver)

Phil Walford - President and CEO of Marathon Gold

Lowell Jackson - Chairman Kaiser Energy Ltd

Rick Williams - CEO Blackwell Investor Relations

Consultants:Don Hains - Hains Geophysics

Eugene Puritch - P&E Consultants

Richard Wagner - SGS Lakefield

43

Page 44: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Seymourville Frac Sand Project - Summary

1. High quality natural frac sand - meets all API ISO standards.

2. Draft MOU – 70/30 Joint Venture with Hollow Water and Seymourville.

3. Simple mine/mill process with reasonable capital investment

4. Lead time to production is about 2 years; subject to successful

marketing of forward sales of frac sand towards project financing.

5. Strategically located to displace imported Wisconsin frac sand.

6. Railroad access to all major light oil and natural gas plays in Western

Canada.

7. Container access to Manitoba and Estevan and US Bakkens.

8. Major LNG plants being permitted would be production drilling for NG

by the time Claim Post’s Seymourville Frac Sand Project starts

production.

9. Dedicated and experienced team to advance and develop the

Seymourville Frac Sand Project through to production.

44

Page 45: Seymourville Frac Sand Project in Manitoba (Canada) · ISO Crush Analysis, ... • Manitoba Bakken fracking - Estimated 566 wells x 150t/well, or a total ... Chevron 2015 LNG Shell

Contact

45