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PROVINCE INVESTS IN SILICA SAND PRODUCTION COMPANY

Released on October 6, 2000

A new northern company will mine and process a deposit of silica sand at Hanson

Lake in northern Saskatchewan as a result of a $1 million investment from the

Saskatchewan Opportunities Corporation (SOCO).



Hanson Lake Sand Corporation owns a large pure silica sand deposit. The sand

is very important in the development of oil and gas wells. Current suppliers

import more than 300,000 tonnes of similar sand every year from the mid-western

US.



"This investment is a milestone for SOCO because it is the corporation's first

investment in northern Saskatchewan." Minister Responsible for SOCO Janice

MacKinnon said. "It is also an investment in innovation in the north and the

use of northern natural resources to create jobs and opportunities for

northerners. This investment will create 16 jobs in the first year of

operation with the potential for more as quarrying increases in subsequent

years."



Given the nature of the product and the similarity in processing technology,

Hanson Lake Sand Corporation has a significant advantage over existing

suppliers as both lower transportation costs and no exchange rate which will

make its product very attractive to Canadian oil and gas companies.



There is currently no other silica sand quarry in Saskatchewan so Hanson Lake

Sand Corporation will be launching a new industry in the province.



Hanson Lake Sand Corporation President Jamie Punt says, "Creating a demand for

a natural resource located here in Saskatchewan is what this opportunity is all

about. Due to the unique nature of the silica sand at Hanson Lake, we will be

able to supply 'sand proppants' to Western Canadian oil and gas service

companies."



In addition to announcing the investment, Minister MacKinnon also announced

SOCO has set up its first office in northern Saskatchewan. The La Ronge

location will pursue more investment opportunities in the north.



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For more information, contact:



Irene Rau Jamie Punt

Director, Corporate Affairs President

SOCO Hanson Lake Sand Corporation

Phone: (306) 787-8576 Phone: (604) 684-0188

irene.rau@soco.sk.ca jpunt@uniserve.com

www.soco.sk.ca

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