Preferred Sands Announces Sale of Bloomer, Wisconsin Sand Plant to Frontier Sand, LLC

The sale marks a major milestone as Preferred Sands has now fully
exited the Northern White sand market and has redirected attention to
development of multiple in-basin frac sand plants.

RADNOR, Pa.–(BUSINESS WIRE)–Preferred Proppants, LLC (“Preferred Sands” or “Preferred” or the
“Company”) today announced certain subsidiaries of Preferred have sold
its Bloomer, Wisconsin sand plant, access to frac sand reserves through
lease agreements and royalty rights, as well as corresponding facilities
and equipment (collectively, the “Bloomer” transaction) to Frontier
Sand, LLC for cash and future consideration, subject to closing and
post-closing adjustments.

Commenting on the Bloomer transaction, Founder and CEO Michael O’Neill
said, “This sale, along with our previously announced Blair, Wisconsin
transaction, is part of our strategy that was put in place during the
previous market downturn to be the regional and in-basin leader within
the space. We are strong believers in the shift to regional and local
sand as the primary source of supply to the major basins, and have now
sold all of our assets that don’t support that strategy.”

Preferred’s localized footprint will include an expected three new Texas
in-basin plants across the Permian and Eagle Ford shale to complement
its existing portfolio of assets that include its Genoa, NE and Sanders,
AZ facilities. The Genoa and Sanders facilities provide regionally
accessed sand and, at Genoa, coated proppants as well, including coarse
mesh sizes, as well as other product offerings to multiple basins.

The Bloomer transaction, as well as the sale of the previously announced
Blair, Wisconsin facility, combined with other strategic actions
undertaken by the Company, have been the culmination of a plan put in
place almost three years ago to be the lowest cost-landed-at-well (CLAW)
regional and in-basin provider of frac sand.

In pursuing a localization strategy, Preferred has been reducing its
train car fleet as the Company shifts its mine footprint locally to
position more of its sales to be delivered by truck, avoiding costly
rail freight charges for customers. In doing so, Preferred has shed
almost one-fifth of its rail cars since last quarter.

About Preferred Sands

With strategic regional plant locations in Arizona and Nebraska, as well
as several new Texas plants expected in 2018, Preferred Sands services
exploration & production and oilfield service companies throughout North
America and is continuously recognized for its environmental
responsibility and achievements in health and safety as an
industry-leading operator.

Preferred
Sands is also one of North America’s leading manufacturers and
providers of high-quality and innovative proppant technologies.
Preferred’s innovative proppant technology solutions include Preferred
Polymeric Proppants, the most advanced downhole coated proppant
technology designed for maximum production efficiency; FloPRO
PTT™, proppant transport technology designed for superior proppant
distribution; and DustPRO™,
the first dust prevention technology designed to reduce airborne
particles during all sand transfer points. These pioneering products
have earned Preferred world-wide recognition as a leader in innovative
and sustainable technologies throughout the oil and gas, chemical, and
technology industries.

The company’s various awards include a finalist for the World Petroleum
Council’s Technological Development recognition in 2017; 2014 CPI
Polyurethane Innovation Award for Improving Oil Productivity; 2014 R&D
100 Award for Improving Oil Productivity; 2013 Oil & Gas Awards for
Environmental Initiative of the Year, Industry Supplier of the Year, and
Excellence in Environmental Stewardship; and 2012 Ernst & Young
Entrepreneur of the Year in Energy, Cleantech, and Natural Resources.

For more information about Preferred Sands, visit www.PreferredSands.com.

Contacts

Preferred Sands
INVESTOR RELATIONS CONTACT:
Matthew
Skelly, 855-542-3256
[email protected]
or
MEDIA
CONTACT:
Matt Goldstein, 484-385-2953
[email protected]