Rock Products

NOV 2017

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16 • ROCK products • November 2017 www.rockproducts.com FRAC SAND INSIDER The National Industrial Sand Association (NISA) awarded Mark Krumenacher, a senior principal and senior vice pres- ident of GZA GeoEnvironmental Inc., with its Recognition of Excellence Award. The award is NISA's highest honor and typ- ically recognizes a lifetime of achievement and contributions to the industrial sand industry. "It was both an honor and humbling to be recognized by my peers with this award," said Krumenacher. "Active participa- tion in organizations like NISA is critical to advancing our field and to our collective ability to operate in a way that supports environmental health and safety." Based in Waukesha, Wis., Krumenacher is widely recognized as a leading expert on aggregate and industrial mineral mining, providing testimony before a wide range of state and federal boards, local environmental groups and community advisory councils on issues associated with non-metallic mining. A member of the Wisconsin Industrial Sand Association board of directors, Krumenacher is actively involved in NISA; National Stone, Sand and Gravel Association; Illinois Association of Aggregate Producers; Industrial Minerals Association – North America; and Society for Mining Metallurgy and Exploration. "It is no surprise that Mark was chosen for this recognition," said William Hadge, CEO of GZA. "He offers both expert insights and a practical, hands on knowledge that is valuable to clients and the entire geotechnical community. We are enor- mously proud of his accomplishments." Krumenacher has served as principal, project manager and project hydrogeologist during the past 30 years with GZA, focused on environmental, geologic, hydrogeologic and engi- neering projects throughout North America. A professional geologist and a certified hazardous materials manager, he has managed and conducted geologic, hydrogeologic and engineering studies, remedial investigations, environmental assessments, pre-acquisition environmental due diligence and hazardous waste management at various properties including surface and underground mines, large industrial, commercial and urban redevelopment projects, federal Super- fund sites and state-lead environmental projects. Krumenacher has also been a featured speaker at Rock Products' Frac Sand Insider Conference. Source Energy Purchases Select Preferred Proppants Assets Source Energy Services Ltd. entered into an asset purchase to acquire a Northern White proppant mine in Blair, Wis., two large frac sand terminals located in Chetwynd and Fort Nelson, British Columbia, and exploration rights to more than 3,600 acres of land in the Peace River Valley of Alberta from certain affiliates of Preferred Proppants LLC. The consideration for the acquisition includes $80 million in cash, subject to closing and post-closing adjustments. The transaction: •  Increases Source's expected 2018 Northern White prop- pant production capacity to 4.8 million metric tons per annum (mmtpa) including the addition of 1.0 mmtpa of low-cost production from the Blair II Facility. •  Enables expected enhanced margins on acquired assets by redirecting volumes through Source's integrated mine to wellsite model. • Provides additional frac sand that can be used to continue to expand Source's offering. •  Increases the coverage of Source's WCSB terminal network by adding two large-scale frac sand terminals in British Columbia. • Secures an opportunity to develop a local frac sand mine and processing facility suited for supplying sand to the Montney region. • Provides significant cash flow per share accretion in 2018 while reducing Source's debt leverage ratios. The acquisition is consistent with Source's strategy of expanding its Northern White proppant processing capacity and its integrated terminal network, to meet the increasing proppant needs of its customers in the WCSB. The acquisi- tion will immediately expand Source's logistics network and increase the company's ability to provide reliable and timely delivery of proppant to its customers. Brad Thomson, president and CEO of Source Energy, stated, "The acquisition provides Source with a package of assets that nicely complements our existing facilities and immedi- ately enables us to increase the level of service we provide to our customers. From the production facilities at Blair to the rail assets and the western Canadian terminals, the entire Preferred package fits like a glove. With this acquisition, we'll continue to meet the growing demand we're witness- ing in the WCSB. We're excited about the acquisition and the opportunity to work with the employees that will be joining us from Preferred." Krumenacher Awarded NISA's Recognition of Excellence Award

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