Mr. Glenn Leroux reports

CANADIAN PREMIUM SAND INC. PROVIDES OPERATIONAL UPDATE

Canadian Premium Sand Inc. has provided an operational update on development of its solar glass manufacturing plans.

U.S. project

The company continues to advance development of its proposed southern U.S. pattern solar glass manufacturing facility anticipated to produce four gigawatts equivalent pattern solar glass annually.

The company has executed a letter of intent proposal for a 12-year lease of a property where a glass manufacturing facility operated prior to it shutting down in 2020. With existing infrastructure for logistics, material handling on site and an 850,000-square-foot building, the site provides an opportunity for capital-efficient market entry for a pattern solar glass manufacturing operation. Under the lease terms, the company will have an option to purchase the site at a predetermined price during the lease period.

The selected site for the U.S. project supports the company's customers' efforts to develop a transparent and domestic U.S. manufacturing supply chain and aligns with the stated goal of the U.S. federal administration to reshore manufacturing. The company has executed memorandums of understanding (MOUs) with customers for offtakes representing approximately 50 per cent of production capacity. In addition to the executed MOUs, the company is advancing negotiations with key customers to secure binding take-or-pay offtake agreements.

The company continues to progress engineering and design efforts for the U.S. project and has completed a front-end engineering and design study that indicates a capital cost of approximately $350-million (U.S.). The process for selecting engineering, procurement and construction contractors and equipment suppliers for the preconstruction process has been completed. The company has selected Toledo Engineering Co. Inc. and Bottero SpA to advance preconstruction engineering, working with Green City Glass as the owner's engineer. The preconstruction engineering effort will result in a refined capital cost and construction schedule to support the company's construction financing efforts.

While the company continues to pursue strategic partners for development of its U.S. project, no definitive or binding agreements are in place at this time.

Selkirk project

With annual domestic solar panel manufacturing capacity in the United States at 52 gigawatts, demand for solar glass has reached a new high. While the company continues to pursue financing options for its proposed vertically integrated Canadian pattern solar glass manufacturing facility in Selkirk, Man., the uncertainty related to announced U.S. import tariffs on Canadian goods as well as the potential for Canadian countertariffs has resulted in a challenging financing environment for a Canadian project. Stability in the Canada-U.S. trade relationship will be key for the company to advance the Selkirk project. As such, the company's near-term focus is on advancing the U.S. project to prepare for construction financing.

Changes to policy impacting the North American solar market

In addition to the U.S. and Canadian tariff uncertainty impacting the Selkirk project, legislative amendments proposed to the previously enacted Inflation Reduction Act (IRA) passed by the U.S. House of Representatives on May 21, 2025, create uncertainty related to the sustainability of the IRA and associated incentives for domestic production. The recent amendments eliminate the domestic content bonus provision from 2028 onward that would otherwise be available to end-users of solar panels that utilize a higher portion of components manufactured in the United States. If the amendments as currently proposed are enacted into law, there will be an adverse effect on the company's ability to secure premium pricing for U.S.-made pattern solar glass over Asia-Pacific import glass prices.

The policy amendments in the United States also propose rigorous regulations targeting prohibited foreign entities (PFE). Companies with their principal place of business in China would be categorized as a PFE in the proposed legislation. The majority of global production of pattern solar glass is currently supplied by companies based in China. Enacting this policy could have significant negative impacts on the import of pattern solar glass from Asia-Pacific, a scenario that would enhance the value proposition and commercial viability of North American pattern solar glass supply for solar panel components, particularly glass.

The company continues to advance both the U.S. and Selkirk projects and is closely monitoring legislative actions in the United States, the impact of proposed legislation to IRA incentives, and continuing trade matters, particularly between Canada and the United States. Further, the company awaits clarity on Canadian domestic economic policy following the April 28, 2025, Canadian federal election. The outcome of these actions and policies will influence the company's strategy and timeline of securing financing for its projects.

About Canadian Premium Sand Inc.

The company owns a large silica sand deposit as detailed in a National Instrument 43-101-compliant technical report dated April 9, 2025. The contents of this technical report support the company's plans to develop pattern solar glass manufacturing capacity utilizing its silica sand supply of the necessary physical characteristics for the operating life of the proposed facilities.

The company is developing North American manufacturing capacity for ultrahigh-clarity pattern solar glass through multiple facilities, utilizing high-purity, low-iron silica sand from its wholly owned Wanipigow quarry leases. The company's proposed low-carbon facility located in Selkirk, Man., will utilize renewable Manitoba hydroelectricity and is forecasted to produce six gigawatts of low-carbon solar glass. The company's planned facility located in the United States is forecasted to produce four gigawatts of domestic solar glass. With a combined 10 gigawatts of annual proposed pattern solar glass manufacturing capacity, the company is positioning to become the largest and preferred supplier in North America. The company is a reporting issuer in Ontario, Alberta and British Columbia. Its shares trade on the TSX Venture Exchange under the symbol CPS.

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