AMI Athabasca Minerals Inc

Athabasca Minerals Inc. (“Athabasca” or the “Corporation”) (TSX Venture: AMI (previously ABM)) announces its financial results for the third quarter ended September 30, 2019. The Corporation’s financial statements and management’s discussion and analysis (“MD&A”) for the quarter ended September 30, 2019 are available on SEDAR at www.sedar.com and on the Athabasca Minerals Inc. website at www.athabascaminerals.com.

Robert Beekhuizen, Chief Executive Officer, states: “During third quarter of 2019 the Corporation has achieved key milestones that elevate a number of opportunities across multiple business fronts. This includes repositioning the base Aggregates division for near-term revenue growth, demonstrating the potential of its AMI Silica sand division to disrupt the imported sand market in Canada, and setting the Aggregates Marketing division on a path of technology enabled growth. AMI continues to develop opportunities and strategies to unlock the asset base and drive shareholder value.”

2019 Q3 Highlights

Athabasca Minerals is pleased to report the following:

• Received approval of the Susan Lake Closure Plan by Alberta Environment and Parks (“AEP”) on August 15, 2019.
• Executed a Settlement Agreement with Syncrude Canada Ltd (“Syncrude”) effective September 26th, 2019 with respect to a legacy claim (filed by AMI Oct-2012) and counter claim (filed by Syncrude Mar-2015). The settlement agreement did not have a material impact on AMI’s cash position.
• Submitted the regulatory application in Q3-2019 to AEP for approval to operate the Coffey Lake Public Pit located approximately 50 km north of Susan Lake or 90 km north of Fort McMurray. The regulatory application is under review and has gone through progressive rounds of formal clarifications. Upon regulatory approval AMI will be the pit management contractor on behalf of the Province of Alberta for a period of 15 years.
• Completed the NI 43-101 technical report for the Duvernay premium domestic sand project (“Duvernay Project”) which includes a contiguous resource of 24.7 million metric tonnes (“MT”) measured resource, an additional 5.6 million MT indicated resource, and a further 4.9 million MT inferred resource.
• Completed the design basis in support of regulatory applications for the Duvernay Project and presented to AEP and County of Athabasca officials with respect to submissions for approval. The County development permit application was submitted in October 2019.
• Expanded its strategic relationship with Montana First Nation (“MFN”) beyond the initial 185 acres Colchester Lands situated near Ponoka, Alberta to encompass approximately 9,600 acres of both on-reserve and off-reserve Lands. Additionally, the Corporation was awarded the MFN Emergency Road Repair Contract, which will further strengthen this important relationship.
• Aggregates Marketing was awarded a contract in excess of $800,000 in revenues for integrated supply, transportation, quality control and delivery of rail ballast to the regional operations of a major oil & gas company. Work under this contract started in October 2019.

Financial Highlights

($ thousands of CDN, unless otherwise noted)	Three Months Ended Sept 30, 2019		Three Months Ended Sept 30, 2018		Nine Month Ended Sept 30, 2019		Nine Month Ended Sept 30, 2018
Aggregate sales revenue	$78		$1,769		$1,059		$2,023
Aggregate management services	$ -		$1,186		$434		$2,418
Revenue	$78		$2,955		$1,492		$4,441
Gross profit (loss)	$(445)		$1,273		$(851)		$1,323
Total income (loss) and comprehensive income (loss)	$749		$(782)		$(1,619)		$(1,577)
Cash position	$3,986		$5,703		$3,986		$5,703
Net cash generated (used) in the period	$264		$1,108		$(1,092)		$3,073
Income (loss) per share, basic ($ per share)	$0.017		$(0.023)		$(0.038)		$(0.047)
Income (loss) per share, fully diluted ($ per share)	$0.016		$(0.023)		$(0.038)		$(0.047)

• Total income and comprehensive income for the three months ended September 30, 2019 of $0.75 million was a significant improvement over the $0.78 million loss for the three months ended September 30, 2018 largely due to the gains realized by finalizing the Susan Lake Public Pit Closure Plan. This included a gain of $2.17 million realized in September 30, 2019 due to the positive impact of the change in estimate in environmental rehabilitation obligations (“ERO”) at Susan Lake as a result of the approval of the Closure Plan.
• Total loss and comprehensive loss for the nine months ended September 30, 2019 of $1.62 million was 3% greater than the $1.58 million loss for the three months ended September 30, 2018 as lower gross profit was offset by the gains realized by finalizing the Susan Lake Public Pit Closure Plan in Q3-2019.
• Working capital of $4.69 million at September 30, 2019 is up 70% from June 30, 2019 working capital of $2.77 million due primarily to maintaining a strong cash position despite the lower revenues and the reduction in reclamation obligations resulting from finalizing the Susan Lake Public Pit Closure Plan.

About Athabasca Minerals Inc. (AMI)

Athabasca Minerals Inc. (www.athabascaminerals.com), is an integrated group of companies focused on the aggregates and industrial minerals sectors, including resource development, aggregates marketing and midstream supply-logistics solutions. Business activities include aggregate production, sales and royalties from corporate-owned pits, management services of third-party pits, acquisitions of sand and gravel operations, and new venture development. Athabasca Minerals is the parent company of Aggregates Marketing Inc. (www.aggregatesmarketing.com) – a midstream technology-based business using its proprietary Rockchain™ digital platform, associated algorithm and QA/QC services to provide cost-effective integrated supply /delivery solutions of industrial minerals to industry, and the construction sector. It is also the parent company of AMI Silica Inc. (www.amisilica.com) – a subsidiary positioning to become a leading supplier of premium domestic in-basin sand with regional deposits in Alberta and NE British Columbia. It is the joint venture owner of the Montney In-Basin and Duvernay Basin Frac Sand Projects.

Additionally, the Corporation has industrial mineral leases, such as those supporting AMI’s Richardson Quarry Project, that are strategically positioned for future development in industrial regions with historically and consistently high demand for aggregates.

For further information on AMI, please contact:

Jan Cerny, VP Corporate Development & Capital MarketsTel: 403-818-8680 // Email: jan.cerny@athabascaminerals.com

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