Select Sands Corp. — Interim / Quarterly Report 2023

May 2, 2023

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Select Sands Reports Results for Fourth Quarter and Full Year 2022

MAY 1, 2023 – HOUSTON, TX, USA – Select Sands Corp. (“Select Sands” or the “Company”) (TSXV: SNS, OTC: SLSDF) today announced operational and financial results for Q4 and full year 2022, and the filing of its financial statements and associated management’s discussion and analysis on www.sedar.com. All dollar references in this release are in U.S. dollars.

KEY HIGHLIGHTS

• Sold 81,451 tons of frac and industrial sand during Q4 2022 compared to 83,222 tons in Q3 2022 and 94,670 tons in Q4 2021.

  • For full year 2022, the Company sold 355,307 tons of frac and industrial sand – an 8% increase from 328,978 tons sold during full year 2021.

• Recorded revenue of $5.4 million and gross margin of $0.5 million in Q4 2022 versus $5.4 million of revenue and gross margin of $0.7 million in Q3 2022, and revenue of $6.1 million and gross margin of $0.7 million for Q4 2021.

  • For the twelve months ended December 31, 2022, the Company recorded revenue of $22.3 million and gross margin of $3.0 million – an increase of 13% and 86%, respectively, from revenue of $19.7 million and gross margin of $1.6 million for the twelve months ended December 31, 2021.

• Reported a net loss of $0.7 million, or $0.01 per share, in Q4 2022 compared to a net loss of $0.1 million, or $0.00 per share, in Q3 2022 and a net loss of $0.8 million, or $0.01 per share, in Q4 2021.

  • For full year 2022, the Company reported a net loss of $0.9 million, or $0.01 per share, versus a net loss of $1.7 million, or $0.02 per share, for full year 2021.

• Generated adjusted EBITDA[(1)] of $0.2 million for Q4 2022 versus $0.5 million in Q3 2022 and $0.5 million for Q4 2021.

  • For the twelve months ended December 31, 2022, the Company generated adjusted EBITDA of $1.9 million – 3.4 times higher than the $0.5 million of adjusted EBITDA generated during the twelve months ended December 31, 2021.

• As of December 31, 2022, cash and cash equivalents were $0.6 million, accounts receivable was $1.0 million, inventory was $4.8 million, working capital was $1.1 million and total debt was $8.4 million (including $7.3 million long-term).

• (1) Adjusted EBITDA is a non-IFRS financial measure and is described and reconciled to net (loss) income in the table later in this release under the section titled “Non-IFRS Financial Measures”.

Zig Vitols, President and Chief Executive Officer, commented, “The fourth quarter marked the successful conclusion to another solid year for the Company, which was highlighted by year-over-year growth in sales volumes, revenue, gross margin and adjusted EBITDA. Throughout the year we continued to work closely with

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our customers to ensure we met their needs while also capitalizing on available opportunities to strategically enhance our cost structure for the benefit of our shareholders. Of course, none of this would have been possible without the efforts of our workforce and I want to thank them for their continued hard work and dedication. As in the past, we remain squarely focused on providing our customers with outstanding service as we meet growing demand for our premium quality Northern White Sand and other product offerings.”

FINANCIAL SUMMARY

The following table includes summarized financial results for the three months ended December 31, 2022, September 30, 2022 and December 31, 2021, and for full year 2022 and 2021:

Select Sands Corp. Summarized Consolidated Interim Statements of Operations and Comprehensive Loss (Expressed in United States Dollars) (Unaudited)

(Expressed in United States Dollars) (Unaudited)
Revenue Cost ofgoods sold(excludingdepreciation and depletion)	December 31, September 30, December 31, 2022 2022 2021 5,442,711 $ 5,397,797 $ 6,066,700 $ 4,951,989 4,658,925 5,383,435 490,722 738,872 683,265 272,031 258,439 403,401 430,277 505,855 499,597 132,394 132,804 215,222 (343,980) (158,226) (434,955) 435 199 31 2,679 12,178 924 - - - For the Three Months Ended	December 31, December 31, 2022 2021 22,297,548 $ 19,742,762 $ 19,329,532 18,145,749 For the Twelve Months Ended Audited
Gross Margin		2,968,016 $ 1,597,013 $
General and administrative ("G&A") expenses Depreciation and depletion Interest on long-term debt		1,181,143 1,274,754 1,741,737 1,711,604 558,117 630,332
Operating Loss		(512,981) $ (2,019,677) $
Interest income Foreign exchange gain Gain on settlement of debt		837 344 44,080 21,127 - 574,990
Gain on sale of investments	- - -	- 105,207
Loss on sale/disposals and impairments of equipment	(356,282) (2,733) (169,829) (697,148) $ (148,582) $ (832,726) $ - - - (697,148) $ (148,582) $ (832,726) $ (3,798) (15,809) (5,290) (700,946) $ (164,391) $ (838,016) $ (0.01) $ (0.00) $ (0.01) $ 88,563,316 88,563,316 88,563,316 221,805 $ 492,810 $ 481,058 $	(400,066) (157,285)
Loss Before Income Taxes Income tax expense		(868,130) $ (1,677,374) $ - -
Net Loss Foreign currencytranslation adjustment		(868,130) $ (1,677,374) $ (52,178) (30,019)
Comprehensive Loss Diluted Loss Per Share Weighted Average Number of Shares Outstanding Adjusted EBITDA(1)		(920,308) $ (1,707,393) $ (0.01) $ (0.02) $ 88,563,316 88,563,316 1,856,273 $ 543,969 $

(1) See "Reconciliation of Net (Loss) Income to EBITDA to Adjusted EBITDA" in "Non-IFRS Financial Measures" section later in this release for more details.

SALES VOLUMES

Frac sand Industrial sand Frac and Industrial sand Other sand & gravel Total	For the Three Months Ended For the Twelve Months Ended December 31, September 30, December 31, December 31, December 31, 2022 2022 2021 2022 2021 81,451 83,222 94,670 355,307 328,978 - - - - - 81,451 83,222 94,670 355,307 328,978 2,260 2,400 25,103 7,935 31,932 83,711 85,622 119,773 363,242 360,910

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Select Sands sold 81,451 tons of frac and industrial sand during Q4 2022, with sales levels impacted by certain early shutdown of fracking operations late in the period, which was contrary to expectations developed during Q3 2022. Sales volume levels for Q4 2022 were below the full shipment capability of the Company’s Arkansas’ 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 Q1 2023, the Company expects frac and industrial sand sales volumes of approximately 83,000 tons.

OPERATIONS UPDATE

Contributing to Select Sands’ positive outlook is Baker Hughes’ recently published weekly drilling rig count estimates that show a U.S. onshore count of 748 rigs as of April 14, 2023 – an 8% increase from the same time last year. The Company remains focused on positioning its operations to capitalize on this positive trend by further leveraging its high-quality product offerings. This includes serving the increasing needs of customers in the Eagle Ford shale basin in South Texas. Select Sands’ George West transload facility continues to operate 24 hours per day and seven days per week, including offering transload for other rail shippers as appropriate.

OUTLOOK

Mr. Vitols concluded, “Supported by an expected ongoing positive hydrocarbon pricing backdrop as a result of solid industry fundamentals, we anticipate oil and gas operators will continue to need significant volumes of frac sand to develop their respective asset bases throughout 2023. With the superior quality characteristics of our Northern White and other product offerings, we will continue to provide our customers excellent products and service at a compelling price point as our operations are located much closer to key oil basins in the Southern U.S. compared to the majority of other Northern White Sand producers. We appreciate the ongoing support of our shareholders as we remain focused on growing the business through targeted internal initiatives. Complementing these efforts, we will also continue to evaluate external opportunities designed to prudently expand our scope and/or footprint of operations at attractive risk-adjusted rates of return on investment.”

ADDITIONAL MANAGEMENT COMMENTARY

An audio recording of management’s additional comments related to its results and outlook will be posted to the Company’s website (https://www.selectsands.com/) under the Investors section before the market opens Tuesday, May 2, 2023.

ABOUT SELECT SANDS CORP.

Select Sands Corporation is an industrial silica product company, which wholly owns a Northern White silica sands property and related production facilities located near Sandtown, Arkansas. 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 mid-west area such as Wisconsin. Select Sands also operates a transload facility in George West, Texas 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.

FORWARD-LOOKING STATEMENTS

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This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to comments that include, but are not limited to, statements related to expected current and future state of operations, sales volumes for 2023, customer activity levels, and the unique market position of the Company. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forwardlooking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.

COMPANY CONTACTS

Please visit www.selectsands.com or contact:

Zigurds Vitols President & CEO Phone 844-806-7313	W. Joe O’Rourke
	Vice President Sales & Marketing
	Phone: (713) 689-8000 Joe.orourke@selectsands.com

Neither 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.

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Select Sands Corp.

Consolidated Statements of Operations and Comprehensive Loss (Expressed in United States Dollars)

(Expressed in United States Dollars)
Revenue Cost of Goods Sold (excluding depreciation and depletion) Gross Margin Operating Expenses Compensation and consulting Depreciation and depletion Interest expense Selling, general and administrative Share-based compensation Total Operating Expenses Operating Loss Other (Expense) Income Interest income Foreign exchange gain Gain on extinguishment of debt Unrealized gain on investments Gain on sale of investments Provision for impairment of property, plant and equipment Loss on sale of property, plant and equipment Reversal of accrual for repairs and maintenance Loss on settlement with gas utility Total Other (Loss) Income Net Loss for the Year Other Comprehensive Loss Foreign currency translation adjustment Comprehensive Loss for the Year Basic and Diluted Loss per Share Weighted Average Number of Shares Outstanding	December 31, December 31, 2022 2021 $ 22,297,548 $ 19,742,762 19,329,532 18,145,749 2,968,016 1,597,013 707,488 655,010 1,741,737 1,711,604 558,117 630,332 449,172 419,505 24,483 200,239 3,480,997 3,616,690 (512,981) (2,019,677) 837 344 44,080 21,127 - 574,990 - 26,817 - 105,207 (328,984) (170,353) (71,082) (157,285) - 70,000 - (128,544) (355,149) 342,303 (868,130) (1,677,374) (52,178) (30,019) $(920,308) $(1,707,393) For the Years Ended
	$(0.01) $(0.02)
	88,563,316 88,563,316

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Select Sands Corp.

Consolidated Interim Statements of Financial Position

(Expressed in United States Dollars)

ASSETS Current Cash and cash equivalents Accounts receivable Inventory Prepaid expenses Total Current Assets Deposits Right-of-use assets Property, plant and equipment Total Assets

December 31, December 31, 2,022 2,021 $ 644,216 $ 632,042 1,038,958 1,114,192 4,796,915 3,901,978 69,731 104,680 6,549,820 5,752,892 300,101 290,037 2,462,840 451,570 11,595,009 12,661,684 $ 20,907,770 $ 19,156,183

LIABILITIES Current Line of credit Accounts payable and accrued liabilities Deferred revenue Current portion of lease liability Current portion of long-term debt Total Current Liabilities Decommissioning liability Lease liability Long-term debt Total Liabilities EQUITY Share capital Share-based payment reserve Accumulated other comprehensive (loss) income Deficit Total Equity Total Liabilities and Equity

$ 1,285,034 $ 1,375,034 1,625,954 1,532,910 988,491 - 403,198 474,398 1,137,197 1,043,169 5,439,874 4,425,511 78,100 78,100 2,059,642 - 7,278,714 7,705,307 14,856,330 12,208,918 34,803,135 34,803,135 5,734,350 5,709,867 (70,465) (18,287) (34,415,580) (33,547,450) 6,051,440 6,947,265 $ 20,907,770 $ 19,156,183

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Select Sands Corp.

Consolidated Statements of Cash Flows

(Expressed in United States Dollars)

	For the Years Ended
	December 31, December 31,
Operating Activities Net loss for the year Adjustments for non-cash items: Depreciation and depletion Share-based compensation Gain on extinguishment of debt Unrealized (gain) loss on investments Gain on sale of investments Provision for impairment of property, plant and equipment Loss on sale of property, plant and equipment Reversal of accrual for repairs and maintenance Accretion on finance leases Changes in non-cash operating assets and liabilities: Accounts receivable Inventory Prepaid expenses Accounts payable and accrued liabilities Deferred revenue Total Cash Provided by Operating Activities Investing Activities Proceeds from sale of investments Deposits Proceeds from disposal of equipment Purchases of property, plant and equipment Total Cash Provided (Used in) by Investing Activities Financing Activities Proceeds from line of credit Repayment of line of credit Proceeds from long-term debt Principal repayments of long-term debt Repayment of lease liability Total Cash Used in Financing Activities Effect of Exchange Rate Changes on Cash Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year	2022 2021 $ (868,130) $ (1,677,374) 1,741,737 1,711,604 24,483 200,239 - (574,990) - (26,817) - (105,207) 328,984 170,353 71,082 157,285 - (70,000) 28,065 82,335 75,234 439,729 (894,937) (960,261) 34,949 (14,240) 93,044 685,738 988,491 - 1,623,002 18,394 - 400,696 (10,064) 134,807 428,047 216,163 (1,051,605) (229,226) (633,622) 522,440 3,310,000 4,296,933 (3,400,000) (3,455,000) 936,747 1,088,628 (1,269,312) (1,548,474) (502,463) (526,821) (925,028) (144,734) (52,178) (30,019) 12,174 366,081 632,042 265,961 $ 644,216 $ 632,042

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NON-IFRS FINANCIAL MEASURES

The following information is included for convenience only. Generally, a non-IFRS financial measure is a numerical measure of a company’s performance, cash flows or financial position that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Adjusted EBITDA is not a measure of financial performance (nor does it have a standardized meaning) under IFRS. In evaluating non-IFRS financial measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts.

The Company uses both IFRS and certain non-IFRS measures to assess operational performance and as a component of employee remuneration. Management believes certain non-IFRS measures provide useful supplemental information to investors in order that they may evaluate Select Sands' financial performance using the same measures as management. Management believes that, as a result, the investor is afforded greater transparency in assessing the financial performance of the Company. These non-IFRS financial measures should not be considered as a substitute for, nor superior to, measures of financial performance prepared in accordance with IFRS.

Select Sands Corp.

December 31, September 30, December 31, 2022 2022 2021 Net Loss $ (697,148) $ (148,582) $ (832,726) Add Back: Depreciation and depletion 430,277 505,855 499,597 Share-based compensation - - 200,239 Interest expense 132,394 132,804 215,222 EBITDA $ (134,477) $ 490,077 $ 82,332 Add Back: Reversal of accrual for repairs and maintenance - - (70,000) Loss on settlement with gas uitility - - 128,544 Gain on extinguishment of debt - - - Gain on sale of investments - - - Unrealized gain on investments - - - Provision for impairment of property, plant and equipment 328,984 - 170,353 Loss on sale of property, plant and equipment 27,298 2,733 169,829 Adjusted EBITDA $ 221,805 $ 492,810 $ 481,058 Reconciliation of Net Loss to EBITDA to Adjusted EBITDA Three Months Ended	December 31, September 30, December 31, 2022 2022 2021 Net Loss $ (697,148) $ (148,582) $ (832,726) Add Back: Depreciation and depletion 430,277 505,855 499,597 Share-based compensation - - 200,239 Interest expense 132,394 132,804 215,222 EBITDA $ (134,477) $ 490,077 $ 82,332 Add Back: Reversal of accrual for repairs and maintenance - - (70,000) Loss on settlement with gas uitility - - 128,544 Gain on extinguishment of debt - - - Gain on sale of investments - - - Unrealized gain on investments - - - Provision for impairment of property, plant and equipment 328,984 - 170,353 Loss on sale of property, plant and equipment 27,298 2,733 169,829 Adjusted EBITDA $ 221,805 $ 492,810 $ 481,058 Reconciliation of Net Loss to EBITDA to Adjusted EBITDA Three Months Ended	2022 2021 $ (868,130) $(1,677,374) 1,741,737 1,711,604 24,483 200,239 558,117 630,332 $1,456,207 $ 864,801 - (70,000) - 128,544 - (574,990) - (26,817) - (105,207) 328,984 170,353 71,082 157,285 $1,856,273 $ 543,969 Twelve Months Ended December 31,

As reflected in the above tables for the periods presented, the Company defines EBITDA as net loss adjusted for items listed. The Company defines Adjusted EBITDA as net loss adjusted for select items used to estimate EBITDA

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with additional adjustments as listed in the above table to estimate Adjusted EBITDA. Select Sands uses Adjusted EBITDA as a supplemental financial measure of its operational performance. Management believes Adjusted EBITDA to be an important measure as they exclude the effects of items that primarily reflect the impact of longterm investment and financing decisions, rather than the performance of the Company’s day-to-day operations. As compared to net loss according to IFRS, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in the Company's business, the charges associated with impairments, termination costs, transaction costs or other items management views as unusual or one-time in nature. Management evaluates such items through other financial measures such as capital expenditures and cash flow provided by operating activities. The Company believes that these measurements are useful to measure a company’s ability to service debt and to meet other payment obligations or as a valuation measurement.

INDICATED RESOURCES DISCLOSURE

The Company advises that the production decision on the Sandtown deposit (the Company’s current “Sand Operations”) was not based on a Feasibility Study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will occur as anticipated or that anticipated production costs will be achieved.

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