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U.S. Silica and BNSF Railway Partner to Significantly Increase Proppant Supply to Eagle Ford

June 18, 2012

Frederick, MD, June 18, 2012  -- U.S. Silica Holdings, Inc. (NYSE: SLCA) today announced an innovative alliance with BNSF Railway Company (BNSF) to build a new silica sand storage facility in San Antonio, TX, that will support the rapidly growing oil and gas extraction industry in the Eagle Ford shale.

US Silica is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market and various industrial and specialty products. BNSF Railway is one of North America's leading freight transportation companies operating on 32,000 route miles of track in 28 states and two Canadian provinces. Together, US Silica and BNSF will build a new 15,000-ton frac sand storage facility, which will be operational in early 2013.

Bryan Shinn, US Silica’s Chief Executive Officer, said the company is “very excited to partner with BNSF to add a unit train frac sand storage facility in a prime Eagle Ford location.  US Silica is committed to continuing to differentiate our offering by leveraging our scale and flexible supply chain to bring high quality products closer to the market.”

“Working with US Silica to extend BNSF’s service into the Eagle Ford shale will create new opportunities for growth for the nation’s energy supply, for jobs and the economy.” said John Lanigan, BNSF executive vice president and chief marketing officer. "  

US Silica anticipates the company will make three to four shipments per month of approximately 10,000 tons of frac sand on 100 car unit BNSF trains from its Ottawa, IL sand mine to meet the industry’s need for proppant. The shipments will include three different grades of dry sand, as well as resin coated proppants from US Silica’s new facility in Rochelle, IL, which is expected to be fully operational in the first quarter of 2013.

ABOUT U.S. SILICA

U.S. Silica Holdings, Inc., a Delaware corporation, is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into the oil and gas proppants end market and a variety of attractive industrial and specialty products end markets. During its 100-plus year history, U.S. Silica Holdings, Inc. has developed core competencies in mining, processing, logistics and materials science that enable it to produce and cost-effectively deliver over 200 products to customers across these end markets. U.S. Silica Holdings, Inc. is headquartered in Frederick, Maryland.

For more information, contact Anita Willis-Boyland at Willis-Boyland@USSilica.com or 301.682.0676.

About BNSF

BNSF Railway is one of North America's leading freight transportation companies operating on 32,000 route miles of track in 28 states and two Canadian provinces. BNSF is one of the top transporters of consumer goods, grain, industrial goods and low-sulfur coal that help feed, clothe, supply, and power American homes and businesses every day. BNSF and its employees have developed one of the most technologically advanced, and efficient railroads in the industry. We work continuously to improve the value of the safety, service, energy, and environmental benefits we provide to our customers and the communities we serve. You can learn more about BNSF at www.BNSF.com.

Forward-Looking Statements:

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include but are not limited to our plans, objectives, expectations ad intentions and other statements that contain words such as “expects,” “contemplates,” “anticipates,” “plans,” “intends,” “believes” and variations of such words or similar expressions that predict or indicate future events, or that do not relate to historical matters. These statements are based on our current beliefs or expectations and are inherently subject to significant uncertainties and changes in circumstances, many of which are beyond our control. There can be no assurance that our beliefs or expectations will be achieved. Actual results may differ materially from our beliefs or expectations due to economic, business, competitive, market and regulatory factors.

 

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