Canadian Premium Sand Inc. announced a best-efforts private placement of up to 27,000,000 units at a price of CAD 0.30 per unit for gross proceeds of up to CAD 8,100,000 on July 27, 2022. Each unit will consist of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at an exercise price of CAD 0.40 for a period of twenty-four months following closing at a price of CAD 0.40 per common share.

In the event that the common shares trade at a closing price at or greater than CAD 0.90 per common share for a period of thirty consecutive trading days, the company may accelerate the expiry date of the warrants by giving notice to the holders thereof, and in such case, the warrants will expire on the 30th day after the date on which such notice is given by the company. As part of the offering, management and directors of CPS, as well as certain of the companyÆs largest shareholders, including Paramount Resources Ltd. and David J. Wilson, have indicated they will subscribe for approximately 25% of the offering, to maintain their current ownership position in the company. The offering is expected to close on or about August 31, 2022, subject to certain conditions, including, but not limited to, the receipt of all necessary approvals, including the conditional approval of the TSX Venture Exchange.

All the securities issued pursuant to the offering will have a hold period that will expire four months and one day from the date of issue.