Rainmaker Resources Ltd. Drills High Quality Frac Sand on the Bray Property, Arkansas


CALGARY, ALBERTA--(Marketwired - Nov. 25, 2014) - Rainmaker Resources Ltd. (TSX VENTURE:RMG) ("Rainmaker") is pleased to announce results of lab testing from its 20-hole sonic drill program on the Bray Property, Izard County, N-C Arkansas. From the test work, all samples met or exceeded the standards for roundness, sphericity, acid solubility and crush resistance.

Rainmaker has entered into a binding Letter Agreement with Arkansas Silica LLC ("ASL") to acquire an Option to Purchase the 304-acre Bray Frac Sand property, located in NE Arkansas. ASL has entered into an Option to Purchase Agreement (the "Option") with the landowners, dated May 30, 2014. This Option gives ASL the right to purchase the property outright for CAN$1,100,000 on or before January 5, 2015.

The drill program was carried out by Terra Sonic International, of Aiken South Carolina. The program was supervised by BRS Inc., an independent consulting engineering company, of Riverton WY. Laboratory testing was performed by Stim-Lab of Duncan OK.

The Company intends to now complete an NI 43-101 resource estimate, to be carried out by BRS Inc.

All of the drill holes were collared in sandstone. The maximum depth of the sandstone encountered was 151 ft, with an average over the whole property of approximately 50 ft (using a 20-foort minimum). A total of 24 samples were shipped to Stim-Labs to be tested for suitability for use as a proppant in hydraulic fracturing operations. The samples were dried, weighed and washed through a 200 mesh screen. The two composites were then tested for sphericity, roundness, acid solubility, bulk density, apparent density and crush resistance (K-value). The procedures followed were as stated in ISO 13503-2:2006/API RP19C:2008.

The sieve test yielded the following results (Please note: these percentages add up to more than 100% because the ranges of the size fractions overlap.)

Size fraction Average
20/40 6.7%
30/50 31.0%
40/70 61.9%
70/140 29.5%

Full testing was carried out on 8 separate composite samples. Results are shown on the following table:

Comp 1 Comp2 Comp 3 Comp 4 Comp 5 Comp 6 Comp 7 Comp 8
Size fraction 30/50 40/70 70/140 40/70 40/70 20/40 30/50 70/140
Sphericity 0.7 0.7 0.6 0.7 0.7 0.7 0.7 0.6
Roundness 0.7 0.6 0.6 0.6 0.6 0.7 0.7 0.6
Acid Solubility 1.2 1.3 2 1.8 1.4 4.1 1.5 2.2
Crush resistance 6k 7k 9k 8k 8k 5k 6k 9k

Notes:

  1. Recommended sphericity and roundness for proppants = 0.6 or greater (ISO/DIS 13503-2/Amd. 1:2009)
  2. Recommended maximum acid solubility for proppants 6/12 through 30/50 = 2.0%, and for 40/7- through 70/140 =3.0% (ISO/DIS 13503-2/Amd. 1:2009)
  3. K value is the highest stress level at which the proppant generates no more than 10% fines, rounded down to the nearest 1000 psi.

Bray Property:

The Bray Frac Sand property is located in Izard County, north-central Arkansas, and has excellent access from State highways. The property is approximately 30 miles north of the city of Batesville, AR. Rail access is available in Batesville, with several potential loading sites present. The currently operating Bluebird Sand LLC Frac Sand operation is located approximately 5 miles southwest of the Bray property.

The property is underlain by the St Peter Sandstone, of Ordovician age, and is homogeneous pure quartz sand. The St Peter sandstone (also known as the Ottawa sand in commercial operations) is considered to be a major source of Frac Sand within the United States, especially in Wisconsin. Bluebird Sand LLC produces Frac Sand from the same formation.

Rainmaker President and CEO, Rick Patmore commented, "I am extremely pleased to finally announce our findings for a prolific field of Frac Sand we discovered in Izard County, north-central Arkansas. Rainmaker has signed an agreement to purchase 304 acres from a family farm that has been identified as a potentially large source of Frac Sand. As the test results clearly demonstrates there is a significant quantity of very high quality Frac Sand on the property. Arkansas, in my opinion, and others that attended the recent Frac Sand symposium in Houston, is a better location to mine due to many factors.

"The sands on this property are identified as the St Peter sandstone which is the host formation for the Wisconsin production, and which are some of the highest quality sands available on the market.

"Another factor is the weather - in Arkansas you can mine year round, 24 hours a day vs. Wisconsin where cold weather plays a key role in limiting the ability to produce to an average of 9 months a year. There are currently only two operating Frac sand mines in Arkansas vs. 120 in Wisconsin. The Arkansas state is very Frac Sand friendly and has come to realize the economic benefits of the Frac Sand universe.

"The Bray property is only 17 miles from a railway location that is connected to main line rail for easier access to the markets. Further, the property is only one hour away from a barging site to transport the Frac Sand product down the Arkansas River to the Mississippi and on to locations such as Corpus Christi that is a main staging port for Frac Sands. Transportation is not an issue on the trucking side as there is a large Frac Sand transportation company based approximately two hours away.

"The opportunity for employment for the people in Melbourne/Batesville Arkansas is very apparent. There is an abundance of people who are qualified and wanting to work in the Frac Sand industry. If it is developed, we currently believe there will be no problem getting qualified staff to manage our plant.

"The Frac Sand Industries future looks promising, while the oil producers may drill and complete fewer new wells during periods of lower prices, production will be maintained by maximizing the productivity of existing wells, which means that the amount of proppant sand used for well stimulation will not decline, and may well increase.

"I am very pleased to finally be able to show the patient shareholders of Rainmaker that indeed the Board of Directors has been working very hard to bring this piece of the puzzle to fruition and look forward to adding more pieces in the very near future".

About Rainmaker:

Rainmaker Resource Ltd., a well-rounded Frac Sand company, has acquired Frac Sand assets in Canada and the United States: Jayjay Lake project in north-central Saskatchewan and the Bray Property in Arkansas. Both projects have excellent access to key infrastructure and are close to existing Frac Sand producers.

Rainmaker is focused on the development, acquisition, and exploration of Western Canadian proppant projects with the goal of being amongst the lowest cost producers. Proppant or Frac Sands are used in unconventional oil and gas production from tight shale formations. This special sand is used to provide a pathway for hydrocarbons to flow by propping open fractures. Wells are being drilled deeper and more hydraulic fractures placed, therefore, the demand for Frac Sand will continue increasing.

Chris M. Healey, P.Geo, a Director of Rainmaker, is the qualified person who prepared the technical content of this release and who approves its release.

On behalf of the Board of Directors
"Rick Patmore"
Rick Patmore, President and CEO
Rainmaker Resources Ltd.

For additional information, visit the company website at: www.rainmakerresources.ca. The company's profile may also be viewed on www.sedar.com.

The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release."

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. WARNING: The Company relies on litigation protection for `forward looking" statements. Actual results could differ materially from those described in the news release as a result of numerous factors, some of which are outside the control of the Company. This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act') or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Contact Information:

Denby Greenslade
Corporate Communications
604.638.8030
news@rainmakerresources.ca