Claim Post’s NI 43-101 inf. at 25M t of 94% SiO2

Apr 30, 2014

CLAIM POST ANNOUNCES COMPLETION OF INITIAL NI 43-101 INFERRED RESOURCE ESTIMATE OF 25 MILLION TONNES OF SILICA SAND/CLAY MATRIX AT SEYMOURVILLE PROJECT ON APPROXIMATELY 20% OF THE PROJECT LICENSE AREA

P&E Mining Consultants Inc. has estimated Claim Post Resources Inc.’s Seymourville project NI 43-101 inferred resource estimate at 15 million cubic metres or at a bulk density of 1.73 tonnes per cubic metre; 25 million tonnes at a composite grade of 94 per cent Si02. The sand composite is a mixture of 99 per cent pure silica sand with a matrix of clay, fine silica and iron minerals which will be removed when processed as frac sand. This high-grade silica sand deposit is located 200 kilometres northeast of Winnipeg, Man., just off of paved Highway 304 on the east shore of Lake Winnipeg.

The Seymourville project is being evaluated for use as a natural sand proppant (frac sand) for the oil and gas industry. The initial NI 43-101 resource estimate is the first key step to advance the Seymourville frac sand project to production. Preliminary screening at SGS labs in Lakefield, Ont., indicates approximately 80 per cent of the sand/clay matrix is in the frac sand size range of 20 to 140 mesh. SGS testwork will also investigate the recovery of the minus-140 mesh silica and perhaps clay minerals such as kaolinite.

The president of Claim Post Resources, Charles Gryba, stated: “We are very pleased with this report; it confirms that we have a very substantial silica sand resource, which we can grow with additional drilling. The next step in derisking the project is contracting an independent preliminary economic assessment in order that we can evaluate the potential economics of the project once the SGS — API testwork is completed. Based on the resources delineated in this report, and if one assumes a mine life of 20 years, we are now in a position to evaluate the economics of a mine processing plant with a production capacity of around one million tonnes per year of frac sand.”

Claim Post previously announced (March 11, 2014, press release filed on SEDAR) that a 1,000-kilogram representative sample of sand from 20 individual sonic drill holes was delivered to the SGS Lab in Lakefield, Ont., for bench scale metallurgical test work which was followed by, API ISO frac sand test work. Ultimately the remainder of the sand was processed into one kg samples for test marketing frac sand to oil and natural gas operators.

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 U.S. frac sand. U.S. frac sand production has grown from 20 million tonnes in 2011, to 28 million tonnes in 2012 and to about 40 million tonnes in 2013. The vice-president of Union Pacific Railroads at the September, 2013, Frac Sand conference in Minneapolis, based on their extensive studies, forecast that the U.S. market will be 67 million tonnes of frac sand by 2017.

Claim Post’s Seymourville frac sand deposit is approximately 1,000 km closer to the Canadian market than Wisconsin sand deposits; this indicates the potential for significant transportation savings. Claim Post is evaluating a transload facility at the Centre Port site in Winnipeg which will provide unit train loading and access to CN, CPR and the BNSF railways plus provide bulk truck or container service to the oil industry in Manitoba, Saskatchewan and the U.S. side of the Williston basin.

Charles Gryba, PEng, is the company qualified person for this press release. Eugene Puritch, PEng, president of P&E Mining Consultants Inc. and an independent qualified person, has reviewed and approved the technical content of this press release.

http://www.claimpostresources.com/news.php