Claim Post starts Seymourville NI 43-101 estimate

Jan 21, 2014

CLAIM POST RESOURCES INC. RETAINS P&E MINING CONSULTANTS INC. FOR COMPLETION OF A NI 43 -101 RESOURCE ESTIMATE TECHNICAL REPORT

Claim Post Resources Inc. has retained P&E Mining Consultants Inc. of Brampton, Ont., to complete a National Instrument 43-101 resource estimate technical report on Claim Post’s Seymourville frac sand project located 200 kilometres northeast of Winnipeg, Man., just off Highway 304 on the east shore of Lake Winnipeg.

The Seymourville deposit is the onshore extension of the Black River formation mined for high-purity silica from 1928 to 2003 on Black Island. A thin layer of glacial till effectively hid the sand deposit located within a 25-metre-high, flat-topped hill. Government geologists identified the deposit from a road cut. The drilling of 12 diamond drill holes in the 1980s plus trenching of shallow outcropping sand, led to the publishing of a historical 45-million-ton resource of silica sand (Manitoba open file report OF 96-4). The sand was evaluated to a historical feasibility study level in 1996 as silicon dioxide feed for 500 tons per day plate glass plant (Manitoba open file OF 96-7). A qualified person has not done sufficient work to classify the historical estimate as current mineral resources. The issuer is not treating the historical estimate as current mineral resources.

Claim Post has purchased or optioned 734 hectares of Quarry leases covering most of the Seymourville sand deposit from Char Crete Ltd. and Gossan Resources Ltd. Gossan completed three drill campaigns, totalling 58 drill holes, from 2004 to 2008 on the Gossan portion of the sand leases. The 2008 drill program was 25 sonic drill holes, 3.5 inches in diameter, drilled to a maximum 30-metre depth. In 2009, Gossan processed sand from three sonic drill holes to frac sand size ranges and retained the PropTester Labs in Texas to complete a range of API ISO testwork for potential marketing to the oil and gas industry as a proppant. Sand from the remaining 22 sonic drill holes has been in locked storage in Winnipeg since 2008. Four of the government drill holes were drilled on the Char Crete leases; the remaining eight holes were drilled for general exploration of the sand deposit.

The president of Claim Post Resources, Charles Gryba, stated: “We are concentrating on derisking the Seymourville frac sand project. We want to independently compile all of the Gossan and government drilling into a single database prior to starting our own sonic drill program to confirm and expand the size of the resource. We have just completed a Lidar survey that gives us a 0.5-metre interval contour map which allows the 70 drill hole collar elevations and locations to be plotted accurately on a base map. It is anticipated that P&E would be able to calculate an indicated resource. We expect to have the P&E technical report press released before the end of the first quarter of 2014.”

The historical metallurgical testwork for glass manufacturing indicates that the Black River formation sand stone has been mainly disintegrated into individual sand grains surrounded entirely by clay. Simply scrubbing off the clay or washing the sand with water results in pure white, round sand grains grading over 99 per cent pure silicon dioxide ideal for processing into frac sand. The company is in the process of structuring a program to derisk the processing side of the Seymourville project.

The market for natural frac sand continues to grow at a high rate. The State of Wisconsin alone produces about 75 per cent of all the United States frac sand. Production has grown from 22 million tons in 2011, to 31 million tons in 2012 and to 38 million tons in 2013. The vice-president of Union Pacific Railroads at the September, 2013, frac sand conference in Minneapolis predicted, based on its extensive studies, that the U.S. market will reach 70 million tons of frac sand by 2017.

Claim Post’s Seymourville frac sand deposit is about 1,000 kilometres closer to the Canadian market than Wisconsin sand deposits; this indicates the potential for significant transportation savings.

Charles Gryba, PEng, is the company’s qualified person for this press release, and Gene Puritch, PEng, P&E, will be the independent qualified person.

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