Superior Silica Sands “We’re in the Logistics Business” Rick Shearer President & CEO Superior Silica Sands

 Hydraulic fracturing is a well stimulation process to optimize or restore production of oil and gas  Over 90% of the wells drilled in the U.S. now require hydraulic fracturing to produce at economic rates, according to IPAA  Fractures created along the borehole of a well increases the surface area exposed and operators are able to produce 10 times the amount of energy while drilling 1/10 th the number of wells  Fractures created are kept open using a proppant – typically sieved round sand, a resin coated sand or a manufactured ceramic proppant  Proppant accounts for approximately 10 – 15% of the total cost of drilling and completing a typical horizontal well 1

FRAC SAND CONSUMPTION MODEL Demand for Oil & Gas GDP growth Substitutes (renewables) Regulation (carbon) Supply of Oil & Gas Decline of current fields New sources of supply Shale gas Oil sands Other Price of Oil & Gas Number of Drill Rigs Wells per Rig Sand per Well Demand for Frac Sand Technology Horizontal drilling Hydraulic fracturing Regulation Infrastructure (water, pipelines, labor, equipment, sand, other) 2

Atwood Industry Review v2 DRIVERS OF DEMAND FOR FRAC SAND NUMBER OF RIGSSAND PER WELLWELLS PER RIG The number of wells drilled per rig per year has increased by 50% since 2002 This improvement has been caused primarily by the rise of horizontal drilling and hydraulic fracturing 3.8% annual growth since 2002 There is a very modest amount of sand consumed for vertical drilling The penetration of horizontal drilling and hydraulic fracturing has greatly increased the average amount of sand used per well drilled 30.8% annual growth since 2002 Sources: EIA; US Geological Survey; Baker Hughes Frac sand consumption is a product of 3 variables: 3 Historically, the number of rigs has been primarily driven by the price of energy Horizontal drilling and hydraulic fracturing make it economic to drill at much lower price levels for oil and gas 9.5% annual growth since 2002

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 The Cambrian quartz sandstone deposits (marked in red on the attached map) found in Wisconsin are a scarce resource  The Cambrian deposits in Wisconsin are unique in that the sand:  Is of unusually high quality  Can be mined in a manner that is cost efficient and environmentally friendly WHERE THE BEST FRAC SAND IS (RED) Source: Where-the-best-sand-is – Brown Presentation 6

 St. Peter’s  Jordan  Wonewoc  To date, no high quality frac sand deposits found on the globe better than Wisconsin and Eastern Minnesota 7

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12  Rail Infra-structure at Plant  Storage Track at Plant  Rail Service  Transit Time to Strategic Destinations  One-Line Haul Capabilities  Competitive Rates  Destination Storage/Transload Services By definition, “We are in the Logistics Business”

13  New Auburn Plant: Directly on Progressive Rail Short-Line to UP ALTOONA 260 Railcar Storage Capability  Clinton Plant: Directly on CN Rail 500 Railcar Storage Capability  Providing our Customers shipment flexibility throughout North America  Building a network of storage/transload locations Oil & Gas Service Companies are demanding more…

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 Dramatic annual growth will level off to about 8% per annum  Frac Market will be cyclical, but with milder peaks and troughs  More capacity coming into the market but leaders remain  International Markets will begin to show significant frac sand demand  Sand producer base will diversify as Service Companies and E&P’s back integrate  Logistics will drive economics 15

 Shipping more sand to numerous new destinations  Unit train shipments more common  Managing bottlenecks and turnaround times becomes more crucial  With freight prices not dropping, service is king  Storage and Transload sites are over populated in some locales  Railroad Partnerships 16

 The Frac Sand Boom is a “Once in a Lifetime” event.  Wisconsin is the Global Epicenter  Efficiency and cost Effectiveness in shipping this important proppant is critical  Rail is a major focal point to complete market success  Any successful frac sand producer is actually in the Logistics Business! 17