Frac-Sand Demand to Increase 300% by 2016

Declan Resources Partners With Opal Energy in Firebag River Property

VANCOUVER, BC / ACCESSWIRE / October 7, 2014 / According to energy analyst Sonny Randhawa, frac sand demand will increase from 28 million tons to 84 million tons by 2016.

"As E&P operators seek to optimize well results, they are using significantly more frac sand per well," confirms a recent Morgan Stanley Research report, "we believe the industry now sits on the verge of a prolonged frac sand supply shortage."

Frac sand is a key product that stimulates the hydraulic fracturing of oil and gas wells, optimizing efficiency and flow rates.

This "picks and shovels" sand fracking space has been a recent boon to investors.

Athabasca Minerals (ABM.V) is developing aggregate and silica sand in Western Canada; AMB stock price is up 115% in the last 12 months. U.S. Silica (SLCA) produces and sells silica to the oil and gas recovery markets in the U.S.; SLCA stock price is up 154% in the last 12 months. Emerge Energy (EMES-NYSE) produces and sells industrial sand used in the extraction of oil and natural gas; EMES is up 580% since its IPO in May 2013.

On September 29, 2014 Declan Resources announced that Opal Energy (OPA.H-TSX.V) has acquired the option to earn up to a 75% interest in Declan's Firebag River Property located southwest of the Athabasca Basin in northeast Alberta.

"The Firebag property is an industrial mineral sand project," stated Declan President and CEO David Miller in an exclusive interview with Financial Press, "This can be a very profitable business. The frack sand lies on the surface, so it's relatively easy to scoop it up, wash it, screen it and put it into rail cars in one tonne bags. We are very excited about the partnership with Opal and the revenue potential of Firebag."

The option agreement requires Opal to make exploration expenditures of $850,000 prior to November 22, 2016. Opal is reimbursing Declan's option payment, exploration expenditures and making a cash payment of $250,000 as well as issuing 4 million shares over a two year period to Declan. The end result will be that Declan has no further cash obligations on the Firebag Property but still retains a significant material interest in it.

The Firebag Property consists of six metallic and industrial minerals permits encompassing approximately 50,000 hectares. It is west of Fission Uranium Patterson Lake South (PLS) project, and about 30 kilometers south of the southernmost mapped margin of the basin. It also lies adjacent to the east of the Athabasca Minerals silica sand project.

"The economics of a project like Firebag can be vibrant," stated Miller, "With a growing demand for API standard silica sand and a large potential resource a strategic joint venture at this stage makes economic sense for us."

Declan completed an initial review of the Firebag River property in November 2013. Surface samples returned values that met or exceeded API standards for roundness, silica content and sphericity. A high percentage of the sand falls within the preferred 20/40 and 40/70 mesh sizes. The Firebag River has year round access is close to the oil and gas hub of Fort McMurray, Alberta - which is serviced by highway and rail.

The option agreement with Opal confirms Declan's corporate strategy of monetizing and retaining partial ownership in high value projects. Miller says that the DNA of Declan is in uranium and that is why the company has chosen to spin Firebag out.

Miller is a heavy-weight in the uranium space. There have been two significant uranium discoveries in the Athabasca basin: Waterbury - a joint venture with Korean electric power corporation - and Patterson Lake South. As the former President of Strathmore and Fission Energy, Miller green-lit the acquisition of both properties.

"Ten years ago, Strathmore was one of the largest property holders in the Athabasca basin, with over 3 million acres. We are now executing the same strategy with Declan, acquiring a large portfolio of properties of which we have 100% ownership - or close to it. From this position we can put together joint ventures with Asian partners who have the capital but not the expertise to explore the basin."

With the Firebag deal done, Declan can now earn up to 100% in over 600,000 acres within or close to the high-grade uranium Athabasca basin (Fission Uranium and NexGen have both discovered long strikes of uranium mineralisation).

Declan's assets include the Saskatchewan properties: Paterson Lake NE, Beatty River, North Star, Maurice Creek, Big Sandy Lake and Thorburn Lake - as well as Alberta Properties: Rene Lake, Maybelle North, Jackfish Creek, Maurice Creek and Richardson River.

"We like the Athabasca Basin," stated Miller, "But the shallower step is on the edge - so our initial focus will be there. However, with a strategic partner, we're not afraid of undertaking projects in the center of the basin. I would rather have 20% uranium at 400 meters than .1% uranium at the surface."

Declan recently did a geophysical survey on the Richardson River Project and discovered some interesting anomalies. They are currently getting bids from geo-physical companies to survey Davidson River.

"In this uranium basin, that is the recipe book," stated Miller, "You start with geo-physics and from there identify drill targets. Our objectives over the next 12 months are to add more prospective properties to the portfolio and to form one or more a joint ventures with deep-pocketed Asian partners."

Miller has long-standing relationships in the Asian uranium community. Miller has lectured on uranium geology and "in-situ" mining for the IAEA in Beijing, he maintains those contacts and others in China. Miller has also had success with North American uranium assets joint-venturing with companies in Japan and South Korea.

Declan is currently trading at .03 with a market cap of $5.11 million.

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Contact:

Declan Resources Inc
1620 West 8th Avenue
Suite 302
Vancouver, BC V6J 1V4
Canada

Dave Miller - CEO
Phone: 604-639-4450
Website: http://declanresources.com

SOURCE: Declan Resources Inc.