Claim Post Resources Inc. Enters Into an Agreement to Purchase Manigotagan Frac Sand Project

TORONTO, ONTARIO--(Marketwired - June 25, 2013) - Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company") is pleased to announce that the Company has entered an agreement to purchase the Manigotagan Frac Sand Project ("Manigotagan Property") from Gossan Resources Limited GSS-V ("Gossan"). The property encompasses 9 quarry leases (306 hectares) and is contiguous to Claim Post's wholly owned Seymourville Property (428 hectares). The properties are located 3km from a paved highway 200 km north-east of Winnipeg, Manitoba (Canada).

The total payable to Gossan for the purchase of the Manigotagan Property subject to Regulatory Approval will be as follows:

1)	1,000,000 common shares of Claim Post or $50,000, at Claim Post's sole discretion on signing the Agreement;
2)	2,000,000 common shares of Claim Post or $200,000, at Claim Post's sole discretion on or before the day which is 6 months after the signing of the Agreement;
3)	$350,000 payable 12 months after the signing of the Agreement;
4)	$350,000 payable 18 months after the signing of the Agreement;
5)	$430,000 payable 24 months after the signing of the Agreement.

By purchasing the Manigotagan Property Claim Post is obligated to pay a Royalty Interest (collectively "The Royalty") to Gossan in the amount of $1.00 dollar per tonne of frac sand plus $0.50 per tonne for other silica sand or clay products sold from the Manigotagan Property. Claim Post can acquire 50% of the Royalty for $1,500,000 any time after the company completes the property payments.

Gossan has previously drilled a 500 m by 1500 m area and recovered silica sand from 41 holes. Sand intersections ranged from 6 m to 18 m thick with an average thickness of 10.1 meters. Gossan also completed ISO testwork at Prop Tester - Cypress, Texas confirming that the sand meets the American Petroleum Institute (API) specifications for frac sand (www.gossan.ca).

The four government drill holes located on the adjacent Claim Post 100% owned Seymourville Char Crete property averaged 16.9 meters thick. (Claim Post Press Release dated Aug 27, 2012). The Manigotagan Property and Seymourville Char Crete Property will be merged into a single project called the "Seymourville Frac Sand Project."

Frac Sand Fundamentals

The main driver for the very rapid, steadily increasing demand of frac sand is the United States focus on becoming self-sufficient in energy by the year 2020 or if not sooner. The demand has been generated by the technology breakthrough of horizontal drilling combined with multiple fracking. Natural sand is the least expensive proppant used in fracking thus the demand for frac sand continues to grow and is now 90% of the market; expensive ceramic proppants are now less than 10%.

Total US frac sand production in 2012 was 31 million tons of which about 3 million tons were exported mainly to Canada. Most (75%) of the US frac sand is currently produced in Wisconsin and neighbouring states. Just in the state of Wisconsin alone; in the past 5 years, a total of 105 frac sand mines feeding 65 processing plants have been put into production. In comparison Canada only has 4 frac sand mines in production producing about 2 million tons of sand per day.

According to Hart Energy, a major US consulting firm which focuses on the shale oil and gas industry, in 2012, the US to produced about 2 million of barrels of shale oil per day, mainly from the Bakkens and Eagle Ford basins in Texas. The USGS statistics show that 28 million tons of frac sand was used in 2012 thus on average a million barrels of new oil requires about 14 million tons of frac sand. It is estimated that to increase the US oil production to 6 million barrels of shale oil per day would require 80 to 100 million tons of frac sand by 2020.

In 2012, the US added 1 million barrels of new shale oil per day whereas Canada added 200,000 barrels of new oil per day mainly in Saskatchewan and Alberta (Government web sites). Provincial 2012 production of light and medium crude in Manitoba, Saskatchewan and Alberta were 50,000b/y, 462,000b/y, and 560,000b/y respectively; totalling 1,170,000 barrels of oil per day. As all the Western Canadian oil fields get redrilled and fracked; Canadian demand will increase. For example the 200,000 b/d increase in 2012 would have required about 2.8 million tonnes of frac sand.

The other main driver of the growth of the Canadian frac sand market will for drilling natural gas to feed the large Liquefied Natural Gas (LNG) plants planned in British Columbia. Compared to sand imported from Wisconsin, Claim Post's Seymourville Frac Sand Project is approximately 1000km closer to the entire Western Canadian market for both oil and natural gas. As such, the Company would benefit from a substantial freight advantage.

Charles Gryba, CEO of Claim Post Resources, stated: "With this Gossan transaction, we will have 100% ownership of the combined Seymourville sand leases totaling 730 hectares or 2.5 square miles. We are now evaluating the most cost effective way to complete an initial NI 43-101 report and a scoping study. We will start test marketing frac sand in parallel as drilling and ISO testwork is confirmed. Finally, we are pleased to have commenced our negotiations with the First Nations, a process required to advance any mining project in Canada today."

The Seymourville Silica Sand deposit was discovered in 1977 and was drilled by Manitoba government geologists in 1981 and again in 1989. The results indicated an estimated resource of 45 million tons of high silica sand (Manitoba Open File Report OF 96-4). The deposit is hosted within a 25m high hill composed mainly of Lake Winnipeg Formation which is the on-shore extension of the Historical Black Island silica deposits that were mined from 1928 to 2004. The 99% pure silica sand was evaluated to feasibility in the 1980's to make 500 tons per day of plate glass; including glass melt tests. (The same geological formation as Black Island hosts the 600,000 tpy Winn Bay Frac Sand operation located about 30km west of Flin Flon near Hanson Lake, Saskatchewan). The historical estimates are not current and do not meet the standards prescribed by NI 43-101. The Company has not completed the work necessary to have the historical estimate verified by a QP. The Company is not treating the estimate as a current NI 43-101 defined resource and the historical estimate should not be relied upon.

Charles Gryba P. Eng. acted as the Qualified Person for this press release.

Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company now has a 100% ownership right in 9 quarry leases near Seymourville, Manitoba which the Company intends to develop as a source of fracking sand for the oil and gas industry. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 48,288,831 common shares of the Company issued and outstanding.

Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly. The Company does not assume the obligation to update any forward-looking statement.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.