Canadian Premium Sand Inc. Announces Successful US Incentive and Board Appointment

Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to announce that it has successfully applied for and received a US$75 million tax credit allocation to re-purpose a former glass manufacturing site in southern US to produce pattern solar glass (the “US Project”). The Company is also pleased to announce an addition to its board of directors.

Tax Credit Allocation

To support the development of the US Project, after receiving a letter of encouragement from the US Department of Energy (the “DOE”) in August of 2024, the Company submitted a detailed application to the DOE’s 48C tax credit program in October of 2024. Following a review of the application by the DOE, the Company has received notice from the US Internal Revenue Service accepting the DOE’s recommendation to grant US$75 million in tax credit allocation to the US Project.

The Company’s submission to the DOE was one of over 800 projects submitted in 2024 and one of only 140 successful projects granted a 48C tax credit allocation. This tax credit allocation is transferable, providing the Company with the option to monetize it to support construction financing. Recipients of transferable tax credits have the flexibility to sell the tax credit for cash or enter into a tax-equity transaction with a third party to support project financing. The Company is in the process of evaluating these options as it advances the US Project to a final investment decision later this year.

Strategic Partner

The Company’s wholly owned US subsidiary, CPS Glass USA Corp. is negotiating a joint venture (the “JV”) agreement with a strategic partner to advance the US Project. The strategic partner brings glass manufacturing expertise, purchasing power and in-house engineering capability. Re-purposing a former manufacturing facility with a strategic partner will allow CPS to refine the capital cost and de-risk both the development of the project and operation of the facility.

US Project Continues to Advance

The Company continues to progress engineering and commercial contracting efforts for the US Project by:

advancing pre-construction engineering and design for the US Project to finalize the capital cost estimate,

initiating an update to the existing Environmental Protection Act permit to reflect the revised operational parameters, and

advancing offtake discussions with its customer base, currently negotiating up to 60% of the US Project output under both binding contracts and memorandums of understanding.

Anshul Vishal, VP Corporate Development will continue to head commercial development of the US Project working towards a successful construction financing as the Company advances its broader vision of leveraging its low iron silica sand resource to become North America’s largest vertically integrated supplier of pattern solar glass.

Brad Virbitsky Appointed to the Board of Directors

The Company has appointed Brad Virbitsky to its board of directors, effective January 24, 2025. Mr. Virbitsky is a portfolio manager and partner at Equinox Partners LP, which currently owns 14% of the Company’s issued and outstanding common shares. Mr. Virbitsky has over a decade of experience in working with management teams and boards to help advise on long-term corporate and financial strategies. Mostly recently, Brad served as board member of Crew Energy Inc. where he participated in a process that ultimately resulted in its shareholders realizing a 70% premium through an all-stock corporate sale transaction. Mr. Virbitsky holds a Bachelor of Arts from Princeton University.

03.02.2025, Canadian Premium Sand