smartsandresourcepropert






SMART  SAND  RESOURCE  PROPERTIES   NEW  AUBURN  PROPPANT  SAND  PROPERTY  AND   HIXTON  GREENFIELD  PROPERTY         Jackson and Barron Counties, Wisconsin  Prepared For  SMART  SAND,  INC.  By  John T. Boyd Company  Mining and Geological Consultants  Pittsburgh, Pennsylvania, USA  Report No.  3555.023  JANUARY  2022  





 






    John T. Boyd Company    Mining and Geological Consultants        January 31, 2022  File: 3555.023        Mr. Lee Beckelman  Chief Financial Officer  Smart Sand, Inc.   1725 Hughes Landing Blvd, Suite 800  The Woodlands, TX 77380    Subject: Smart Sand Resource Properties    New Auburn Proppant Sand Property                  and Hixton Greenfield Property    Jackson and Barron Counties, Wisconsin    Dear Mr. Beckelman:    This Summary Report provides John T. Boyd Company’s  (BOYD) review of Smart Sand, Inc.’s (Smart Sand) New  Auburn (NA) proppant sand property located in Barron  County, Wisconsin and the Hixton Greenfield Property  (Hixton) located in Jackson County, Wisconsin. As shown in  Figure 1, following this text, the subject properties are in  close proximity to one and other and both contain the  Wonewoc Formation frac sand resources. This report  provides an estimate of the (in-place) Resources as of  December 31, 2021. This technical report summary was  prepared for Smart Sand in support of their disclosure of frac  sand resources for the New Auburn Mine and Hixton  greenfield property in accordance with S-K 1300 Regulations.  Smart Sand is a publicly traded corporation listed on the  NASDAQ (SND) with headquarters in The Woodlands,  Texas.      1.0 Introduction and Overview  Smart Sand retained BOYD to prepare a SEC-compliant  technical report summary to support their disclosure of frac  sand resources and reserves following S-K 1300  requirements.     Chairman    James W. Boyd      President and CEO    John T. Boyd II      Managing Director and COO    Ronald L. Lewis      Vice Presidents     Robert J. Farmer    Matthew E. Robb    John L. Weiss    Michael F. Wick    William P. Wolf      Managing Director - Australia    George Cumplido      Managing Director - China    Jisheng (Jason) Han      Managing Director – South America    Carlos F. Barrera      Managing Director – Metals    Gregory B. Sparks        Pittsburgh     4000 Town Center Boulevard, Suite 300    Canonsburg, PA 15317    (724) 873-4400    (724) 873-4401 Fax    jtboydp@jtboyd.com        Denver    (303) 293-8988    jtboydd@jtboyd.com      Brisbane     61 7 3232-5000    jtboydau@jtboyd.com      Beijing     86 10 6500-5854    jtboydcn@jtboyd.com      Bogota     +57-3115382113    jtboydcol@jtboyd.com         www.jtboyd.com    





 






  2   JOHN  T. BOYD  COMPANY  After thorough discussions with Smart Sand management concerning the subject  properties and the new SK-1300 reporting requirements, management has decided to  categorize the currently idled New Auburn Mine and Hixton Greenfield Property as  resource properties. This report reviews these two resource properties.    BOYD has previously prepared reserve reports for both the New Auburn Mine  (3555.018, February 2021) and Hixton Greenfield project (3555.004, August 2014) and  classified the properties as containing reserves both proven and probable. However,  based on the current challenging economic climate pertaining to the demand and pricing  for the products produced at these sites, it was decided to classify the reserves (proven  and probable) as resources (measured and indicated) for current reporting purposes. It  should be noted that this classification is based solely on the current and short-term  future projections of market conditions. This classification is subject to change in the  future should market conditions warrant. Additionally, it should be clear that the change  in classification from reserve to resource has nothing to do with the amount of  exploration and geoscientific information available at each site.     The individuals primarily responsible for this audit and the preparation of this report are  by virtue of their education, experience, and professional association considered  qualified persons as defined in Subpart 1300 of Regulation S-K.    Neither BOYD nor its staff employed in the preparation of this report have any beneficial  interest in Smart Sand, and are not insiders, associates, or affiliates of Smart Sand. The  results of our resource estimate and subsequent audit were not dependent upon any  prior agreements concerning the conclusions to be reached, nor were there any  undisclosed understandings concerning any future business dealings between Smart  Sand and BOYD. This report was prepared in return for fees based upon agreed  commercial rates, and the payment for our services was not contingent upon our  opinions regarding the project or approval of our work by Smart Sand and its  representatives.      2.0 Resource Summary  Smart Sand controls an estimated 214.9 million tons of in-place resources at these  subject sites. Resources are defined as the raw, in-place sand that has not yet been  mined or processed into finished product. Although these resources cannot be currently  classified as reserves, if mined and processed into finished product, approximately 159.5  million tons of additional saleable material may be realized from these resources.    





 






  3   JOHN  T. BOYD  COMPANY  RESOURCES: as of December 31, 2021      Resource Tons (000s)     Measured  Indicated  Total  New Auburn*  66,164  7,961  74,125  Hixton Greenfield  140,774     140,774  *idle        214,899      3.0 New Auburn Mine  3.1 Location and Background  The NA property is located in the Town of Dovre, about 3 miles northwest of the Village  of New Auburn in Barron County, Wisconsin. As shown in Figure 2, the property is both  owned in fee and leased, and encompasses approximately 834 acres. Of the total  acreage, approximately 535.8 is available for resource extraction. Of this, 420 acres are  owned and 115.8 acres are leased. The property is underlain by Wonewoc Sandstone, a  rock type utilized to produce premium Northern White quality sand. The mine was  acquired by Smart Sand in September 2020 along with the sister Utica, Illinois operation  from Eagle Materials. The NA operation has remained idle since the purchase as a  result of the challenging economic climate for Northern White Sands. There are no plans  to open the facility in the short-term, but energy markets can change abruptly and the  facility is on standby if needed.    3.2 Geology  The NA property is underlain by the Wonewoc Formation, one of the most extensively  mined frac sand deposits in Wisconsin. The Wonewoc Formation is of Cambrian age  and consists of two members: the overlying Ironton Member and the underlying  Galesville Member. Both members are typically white, well sorted, subrounded to  rounded orthoquartzites that typically exhibit a monocrystalline grain structure lending to  the high compressive strength these sands exhibit in laboratory testing. The Wonewoc  sand formation is well accepted and has a “branding” distinction recognized by many of  the well service companies in many of the energy basins.    Drilling data provided on the NA property indicate the mineable sand deposit ranges in  thickness from approximately 22 ft to 102 ft. The mineable sand interval on this property  averages approximately 54 ft thick. The overburden within the mining area ranges in  thickness (depth) from 0 ft to 158 ft in areas of high relief, averaging 38.5 ft in thickness  throughout the property. In areas near the sand outcrop, the overburden is shallow and  can be removed without drilling and blasting using conventional excavating equipment.  In areas under the highest topography, the overburden will most likely become  competent (harder) and require drilling and blasting before excavation.  





 






  4   JOHN  T. BOYD  COMPANY  3.3 Prior Exploration Data  Based on information provided by Smart Sand, we noted that there appeared to be two  drilling programs undertaken by a previous owner of the property. A total of 37 holes  (26 from the first program and 11 from the second program) were drilled to define the  subsurface lithology and to recover samples to test for the quality of the NA sand  resource. BOYD notes that five of these holes were stopped early and not drilled through  the total thickness of the sand. As such, they were not used in the model to estimate the  sand resource, but were used for overburden thickness data. Results of available drilling  and associated laboratory testing are the principal source of information used to define  the extent, tonnage, and quality of sand underlying the NA property. Smart Sand  provided BOYD with a StimLab Report (dated August 29, 2018), which provides an API  analysis on samples received by them on August 9, 2018. This was the only API  analysis provided.     3.4 Geologic Model  Smart Sand provided BOYD with available drill hole data and laboratory grain size and  API results. This information was used to compile a database for geologic modeling of  the NA sand deposit. Aerial survey data, from a July 24, 2020 flight, was also provided  and used to determine the extent of mining to that date. BOYD notes that based on  Eagle Materials production data obtained from Smart Sand, there was not mining activity  on the property from July 24, 2020, to present; as such, no adjustments were required to  be made for depletion through the date of estimation of December 31, 2021. The model  output was used to determine the estimated remaining resource quantities and sand  product distribution throughout the property.     3.5 Sand Quality  A review of the available drill hole analysis indicates the NA property is underlain by a  Northern White grade sand deposit that is predominately medium to coarse in grain size.     Based on the StimLab Report, the samples were screened and testing performed on the  30/50-mesh, 40/70-mesh, and 100-mesh product sizes. The results of the testing are as  follows:        Sample Product Size  (mesh size increment)   Result- Acceptable Maximum   “K-value” Well Pressure (psi)  According to   ISO/API Standards      30/50      7,000  40/70      8,000  100   No Test Performed    





 






  5   JOHN  T. BOYD  COMPANY   Summary of Select ISO/API Test Parameters and Associated Specification Limits  Test  Result  Limit  Result  Limit  Result  Limit  Roundness 0.7  0.6 ≥ 0.7  0.6 ≥ NTP  0.6 ≥ Sphericity 0.7  0.6 ≥ 0.7  0.6 ≥ NTP  0.6 ≥ Turbidity (NTU) 21 ≤ 250.0 21 ≤ 250.0 35 ≤ 250.0 Acid Solubility (%) 1.0 ≤ 2.0 1.2 ≤ 3.0 NTP ≤ 3.0 K-Value (psi) 7,000 * 8,000 * NTP NTP: No Test Performed by StimLab, as not requested by Northern White Sand, LLC * Falls within or is greater than typical K Value range.  30/50-mesh  100-mesh  40/70-mesh      Based on our experience, these results are indicative of (consistent with) high quality  Northern White sand mined and processed from the Wonewoc Formation in this area of  Wisconsin.     3.6 Resource Estimate and Classification  The product size distribution data, obtained from Smart Sand, were compiled into a  database for use in modeling the quality (product size distribution) of the mineable sand  underlying the NA property. The defined mineable resource area is shown on Figure 2.     The mineable area within the property boundary was initially defined by applying a 50-ft  offset inside of the entire property boundary line. Wet processing areas, fines ponds, and  storm runoff ponds were delineated and excluded from the mineable portion of the  property. Final pit highwalls were then defined by applying an 80-degree slope around the  perimeter of the remaining mineable area, from the top of the sandstone interval to the  bottom of the sandstone interval. Additionally, two areas within the NA property boundary  were excluded, as there were insufficient data available to evaluate resource potential:  (1) an isolated tract (two parcels) on the north side of 2nd Avenue, and (2) a small area in  the northwestern corner of the main property that becomes isolated due to a stream that  bisects the property. Minimal additional drilling and testing would be required to define  sand resource occurrence underlying these currently unexplored areas.    Available drilling data are used to establish the top and bottom of overburden and  mineable sandstone intervals in the geologic model of the deposit. The model then  generates the volumes of mineable sandstone resources and overlying overburden. An  in-place sandstone density of 3,200 lbs per cubic yard (dry) was utilized to convert the  sand volume to tons.          





 






  6   JOHN  T. BOYD  COMPANY  A summary of the calculated mineable sandstone resources and overburden volume  follows:    Mineable Acres:  536  Thickness of the Mineable Sandstone (ft)     Range:  22 – 102   Average:  53.6  In-Place Resources (tons -000):  74,125  Overburden Volume (million cu yds)  21.5    Resources within the NA property were estimated using Carlson geological modeling  software, which is a modeling software package widely used and accepted in the mining  industry throughout the United States. Mineral resources are typically classified by  confidence levels based on the level of exploration and assurance from geologic  knowledge of the deposit. All of the resources underlying NA are classified as Measured  or Indicated as listed in Section 2.0 of this report. The definitions of the relevant  categories and subdivisions follow:     Mineral Resources - concentration or occurrence of material of economic interest in  or on the Earth’s crust in such form, quality, and quantity that there are reasonable  prospects for eventual economic extraction. The location, quantity, grade, continuity,  and other geological characteristics of a Mineral Resource are known, estimated, or  interpreted from specific geological evidence, sampling, and knowledge. Mineral  Resources are sub-divided in order of increasing geological confidence into Inferred,  Indicated, and Measured categories.  a. Inferred Mineral Resources - that part of a Mineral Resource for which tonnage,  grade, and mineral content can be estimated with a low level of confidence. It is  inferred from geological evidence, sampling, and assumed but not verified  geological and/or grade continuity. It is based on information gathered through  appropriate techniques from locations such as outcrops, trenches, pits, workings,  and drill holes, which is limited or of uncertain quality and reliability.  b. Indicated Mineral Resources - that part of a Mineral Resource for which tonnage,  densities, shape, physical characteristics, grade, and mineral content can be  estimated with a reasonable level of confidence. It is based on exploration,  sampling, and testing information gathered through appropriate techniques from  locations such as outcrops, trenches, pits, workings, and drill holes. The  locations are too widely or inappropriately spaced to confirm geological and/or  grade continuity but are spaced closely enough for continuity to be assumed.  c. Measured Mineral Resources - that part of a Mineral Resource for which  tonnage, densities, shape, physical characteristics, grade, and mineral content  can be estimated with a high level of confidence. It is based on detailed and  reliable exploration, sampling, and testing information gathered through  appropriate techniques from locations such as outcrops, trenches, pits, workings,  





 






  7   JOHN  T. BOYD  COMPANY  and drill holes. The locations are spaced closely enough to confirm geological  and grade continuity.    3.7 Existing Operation    The NA operation, which has been idle since the acquisition, is capable of producing  20/40-mesh, 30/50-mesh, 40/70-mesh, and 70/140-mesh (100-mesh) frac sand  products. According to Eagle Materials’s 10-Ks, the mine produced 2.0 million tons per  year (Mtpy) in FY2018, 1.7 Mtpy in FY2019, and 0.4 Mtpy in FY2020. In addition, the wet  plant has a production capacity of 2.8 Mtpy and the two dry plants have a combined  capacity of 1.9 Mtpy. The washed product material from the wet plant is trucked  approximately 4.5 miles to the to the dry plant, which is located adjacent to State Route  53, for further processing (drying). The dry plant has rail access via a short line, which  connects with the mainline of the Union Pacific (UP) railway. The mine and wet  processing plant will generally operate between seven to nine months annually due to  cold weather conditions during the winter season. However, the dry plant facility is  capable of producing sand products year-round with the dry processing and loading  operations scheduled for continuous (24/7) operation. This information is summarized in  the table below.    Tons Mined, Wet Plant and Dry Plant Capacities 10-K Reports* Period Ending Fiscal Year Tons Mined (000) Wet Plant Dry Plant March 31, 2018 FY 2018 2,000 2,800 1,900 March 31, 2019 FY 2019 1,700 2,800 1,900 March 31, 2020 FY 2020 430 2,800 1,900 * Eagle Materials Inc. ** Throughput Plant Feed Capacity. Capacity (000 tons)**       4.0 Hixton Greenfield Property   4.1 Location and Background  Smart Sand’s Hixton greenfield property is located approximately 2.5 miles southwest of  the village of Hixton, in Jackson County, Wisconsin, and 38 miles southeast of Eau  Claire, Wisconsin. The 832-acre property is bisected into a north block (637 acres) and a  south block (196 acres proposed for infrastructure). The resource area is located in the  property’s north block and consists of an estimated 444 mineable acres (approximately  70% of the northern block/parcel. Smart Sand owns 100% of the mineral rights and  100% of the surface rights to the entire subject property. Please refer to Figure 1 for the  location. The property has had no prior mining operations and has a MSHA identification  number (4703745) which was assigned in 2015.   





 






  8   JOHN  T. BOYD  COMPANY  4.2 Geology  The Hixton property is underlain by the Wonewoc Formation, one of the most  extensively mined frac sand deposits in Wisconsin. The Wonewoc Formation is of  Cambrian age and consists of two members: the overlying Ironton Member and the  underlying Galesville Member. Both members are typically white, well sorted,  subrounded to rounded orthoquartzites that typically exhibit a monocrystalline grain  structure lending to the high compressive strength these sands exhibit in laboratory  testing. The Wonewoc sand formation is well accepted and has a “branding” distinction  recognized by many of the well service companies in many of the energy basins.    The surface of the Hixton property is overlain by topsoil and a weathered, clayey layer of  material, which averages 20 ft to 25 ft in thickness. Beneath this material is the  Wonewoc Formation.    Within the property, the surface topography is predominately flat lying except for the  western portion of the property where the surface elevation increases as a series of  bluffs are present. Grain size distribution of the upper half of the deposit shows a  tendency to be a primarily finer grained product than the lower half of the deposit which  shows an overall coarser product.    Structure of the Wonewoc Formation, on the Hixton property, appears to be flat lying  with no evidence of faulting or other geologic features. Total thickness of the Wonewoc  Formation contained on the property was not determined as the average drilling depth of  140 ft to 150 ft indicated that the sand deposit was present throughout the entire depth  of the drilling. As the drilling stopped while still in the sandstone formation, the potential  occurrence of Wonewoc Sandstone strata below the base of the drill hole depths has not  been included in this report.     4.3 Exploration Data  Between 2011 and 2014, six exploration holes were drilled on the property. The drilling  and sampling were performed on all six exploration core holes by Soils and Engineering  Services (SES) from Madison, Wisconsin, under the supervision of Smart Sand staff.  The placement of the six exploration drill holes was distributed throughout the site. The  holes were drilled utilizing the air rotary drill to a depth of approximately 150 ft. Sampling  of the cuttings from each core hole was typically completed on 10-ft increments,  beginning near the bottom of the weathered, clayey overburden interval, and continuing  through the entire depth of each hole. The samples were delivered to the Smart Sand  laboratory at the Oakdale, Wisconsin facility where they performed the wash tests and  grain size (gradation) analysis. In addition, the Smart Sand laboratory prepared  





 






  9   JOHN  T. BOYD  COMPANY  composite samples which were sent to Stim-Lab, LLC in Duncan, Oklahoma for API RP  19C/ISO 13503-2 proppant sand characteristic testing.    4.4 Geologic Model  BOYD independently prepared estimates of in-place frac sand resources for the Hixton  property by performing the following tasks. Please refer to Figure 3 for the defined  resource area.    1. The property is bisected into two blocks (northern and southern). Smart Sand  designated the northern block as the mineable resource area for the Hixton property,  and the southern block for operating infrastructure (plants, storage, rail loadout,  other).  2. The geologic database utilized for modeling and estimation consists of results of six  drillholes: four holes from their 2011 drilling program and two holes drilled in 2014  that were recommended by BOYD. The geologic data were imported into Carlson  Software, a geologic modeling and mine planning software suite that is widely used  and accepted by the mining industry.  3. A geologic model of the deposit was created in Carlson Software using  industry-standard grid modeling methods well-suited for simple stratigraphic  deposits. The geologic model delineates the top and bottom of the mineable sand  horizon and the distribution of the product size fractions across the deposit. The top  and bottom of the mineable frac sand interval were established as follows:  a. From the drilling data, the overburden within the resource area averages 20 ft to  25 ft in thickness over the resource property. The top of the mineable sand  interval was defined as the Wonewoc sand formation below the overburden.  b. Drilling on the property extended to an average depth of 140 ft to 150 ft. The  sand deposit was present at the bottom of those holes. The bottom elevation of  the holes ranged from 772 mean sea level (msl) to 867 msl, and as such mark to  the bottom of the mineable frac sand interval.   c. The sand formation extends below the mineable frac sand interval, as defined by  the drilling depths of the six holes, however, no sand below the bottom of the  mineable frac sand interval was included in this report, even though historically  this formation has been mined to greater depths than examined herein. In the  future, the deeper sand material could be evaluated for resource/reserve  consideration if additional exploration work is conducted as to define the  presence and extent of these deeper potential sand resources.  4. After reviewing the continuity and variability of the deposit, the entire mineable area  was classified as a Measured Resource.  5. BOYD applied the following setback requirements:  a. 50-ft offset was applied adjacent to all property lines.  b. 100-ft offset was assigned adjacent to Highway 95.  





 






  10   JOHN  T. BOYD  COMPANY  c. Any site infrastructures were eliminated from the resource areas.  6. In-place volume for the proposed northern mining block was calculated from the  geologic model within Carlson Software. A dry, in-place, sandstone density of  118.5 pounds per cubic foot was used to calculate the in-place tonnage of frac sand.    4.5 Sand Quality  The results of select laboratory testing performed in 2011 on select core samples are  presented below.    November 2011 - Average API/ISO Test Results By Product Size (from 4 bore holes) API RP19C Result API RP19C Test 20/40-mesh 30/50-mesh Specification 40/70-mesh Specification Sphericity 0.7 0.6 - 0.7 ≥ 0.6 0.7 ≥ 0.6 Roundness 0.6 - 0.7 0.6 - 0.7 ≥ 0.6 0.6 ≥ 0.6 Acid Solubility (%) Not Tested Not Tested ≤ 2.0 Not Tested ≤ 3.0 Turbidity (NTU) Not Tested Not Tested ≤ 250 Not Tested ≤ 250 K-Value (000 psi) 5 4 - 7 No Spec 4 - 8 No Spec Number of samples 8 11 NA 11 NA     The composited sample testing suggested that the Hixton property could produce frac  sands which meet minimum API/ISO recommended testing characteristics.    Sieve testing to determine an estimate for the particle size distribution is as follows:    Average In-Place Partice Size Distribution % Retained by Mesh Size 20/40 40/70 70/140 +20 & -140 20.54 32.04 19.42 28.00     The 28% (+20&-140-mesh) is generally classified as the waste product that does not fall  within typical frac sand size requirements.    4.6 Resource Estimate and Classification  Based on the methodology discussed in Section 4.4 above, the estimated reportable frac  sand resources controlled by Smart Sand within the defined boundaries of the northern  block of the Hixton property are presented as follows:    Hixton Property as of December 31, 2021  Measured Resource Tons (000) 140,774         





 






  11   JOHN  T. BOYD  COMPANY  Resources within the Hixton property were estimated using Carlson geological modeling  software, which is a modeling software package widely used and accepted in the mining  industry throughout the United States. Mineral resources are typically classified by  confidence levels based on the level of exploration and assurance from geologic  knowledge of the deposit.    The borehole spacing employed in the drilling of the northern block of the property  ranged from 1,800 ft to 3,000 ft (radius of between 900 ft to 1,500 ft). In addition, the  Wonewoc Formation has a history of mining in the area of the Hixton property. This  information coupled with the known structural and quality information on the Wonewoc  Formation in the area and Hixton property exploration data enabled the Qualified Person  to set a Normal Maximum Spacing Requirement of 3,000 ft for a Measured Resource  Classification for the Hixton property.    The Qualified Person has determined that all of the estimated frac sand resources within  the northern block of the Hixton property can be classified as Measured Resources, and  BOYD is of the opinion that there is a low degree of uncertainty associated with this  measured resource classification.     The definitions of the relevant categories and subdivisions follow:     Mineral Resources - concentration or occurrence of material of economic interest in  or on the Earth’s crust in such form, quality, and quantity that there are reasonable  prospects for eventual economic extraction. The location, quantity, grade, continuity,  and other geological characteristics of a Mineral Resource are known, estimated, or  interpreted from specific geological evidence, sampling, and knowledge. Mineral  Resources are sub-divided in order of increasing geological confidence into Inferred,  Indicated, and Measured categories.  a. Inferred Mineral Resources - that part of a Mineral Resource for which tonnage,  grade, and mineral content can be estimated with a low level of confidence. It is  inferred from geological evidence, sampling, and assumed but not verified  geological and/or grade continuity. It is based on information gathered through  appropriate techniques from locations such as outcrops, trenches, pits, workings,  and drill holes, which is limited or of uncertain quality and reliability.  b. Indicated Mineral Resources - that part of a Mineral Resource for which tonnage,  densities, shape, physical characteristics, grade, and mineral content can be  estimated with a reasonable level of confidence. It is based on exploration,  sampling, and testing information gathered through appropriate techniques from  locations such as outcrops, trenches, pits, workings, and drill holes. The  locations are too widely or inappropriately spaced to confirm geological and/or  grade continuity but are spaced closely enough for continuity to be assumed.  





 






  12   JOHN  T. BOYD  COMPANY  c. Measured Mineral Resources - that part of a Mineral Resource for which  tonnage, densities, shape, physical characteristics, grade, and mineral content  can be estimated with a high level of confidence. It is based on detailed and  reliable exploration, sampling, and testing information gathered through  appropriate techniques from locations such as outcrops, trenches, pits, workings,  and drill holes. The locations are spaced closely enough to confirm geological  and grade continuity.      5.0 Report Qualifications   Our review has been completed and is intended to provide our independent professional  opinions on the quantity and quality of resource underlying the NA and Hixton properties,  and our comments on the mine and plant operations. The opinions expressed herein are  based on data provided by Smart Sand, including the drilling data and laboratory test  results, and BOYD’s extensive frac sand experience.    Mineral mining and processing is a unique and specialized industry. The competency of  BOYD as a consultancy and the principal staff assigned to this project are well  established by:     Reputation and experience developed over the 75-plus years of company existence.   Educational and work background of individuals completing work under this  engagement.   Recognition and acceptance of BOYD’s senior management and staff as individual  experts in minerals valuation in numerous county, state, and federal (US) courts, as  well as international venues.   Experience with review and valuation of numerous major US industrial sand  producers.    While we do not warrant the findings and conclusions in any manner, we believe they  are reasonable and realistic. BOYD certifies that, to the best of our knowledge and  belief:     The statements of fact contained in this report are true and correct.   The reported analyses, opinions, and conclusions are limited only by the reported  assumptions and limiting conditions and are our impartial and unbiased professional  analyses, opinions, and conclusions.   We have no present or prospective interest in the property that is the subject of this  report, and we have no personal interest with respect to the parties involved.   We have no bias with respect to the property that is the subject of this report or to the  parties involved with this assignment.  





 






  13   JOHN  T. BOYD  COMPANY   Our engagement in this assignment was not contingent upon developing or reporting  predetermined results.   Our compensation for completing this assignment is not contingent upon the  development or reporting of a predetermined value or direction in value that favors  the cause of the client, the amount of the value opinion, the attainment of a stipulated  result, or the occurrence of a subsequent event directly related to the intended use of  this appraisal.    No one provided significant professional assistance to the persons signing this  report.    In preparing this report, we have assumed property ownership, drilling, quality testing,  environmental, and plant/process information provided by Smart Sand were prepared by  competent staff and are accurate. Such information was accepted as presented; any  misrepresentations, errors, and/or omissions in the provided data could change the  BOYD findings presented herein.    Opinions expressed are subjective in nature and are based on the knowledge and  experience of the BOYD staff and management.     Following this page are:    Figures      1: General Location Map       2: Property Control Map and Resource Areas New Auburn Property      3: Property Map and Resource Area Hixton Proppant Sand Property     Respectfully submitted,    JOHN T. BOYD COMPANY  By:        John T. Boyd II  President and CEO    Q:\ENG_WP\3555.021 - SS S-K 1300\WP\RPT\Section III\Smart Sand - Resource Properties.docx