News Release

Hi-Crush Partners LP Announces Launch of PropStream(TM) and Investment in PropX

News Release

Hi-Crush Partners LP Announces Launch of PropStream(TM) and Investment in PropX

      ·         Announces PropStream integrated delivery solution, expanding logistics capabilities all the way to the well site
      ·         Conducted successful pilot test with leading pressure pumper in the Permian Basin
      ·         Joint formation and funding of PropX for development of critical last-mile proppant logistics equipment
Houston, Texas, October 31, 2016 - Hi-Crush Partners LP (NYSE: HCLP), "Hi-Crush" or the "Partnership", today announced the successful pilot test of its PropStream(TM) integrated delivery solution, which is designed to structurally enhance the efficiency of sand delivery in the well completion process. Working with a leading pressure pumper in the Permian Basin, PropStream delivered proppant for a 30-stage completion utilizing three grades of proppant per stage.  PropStream coordinated the delivery of proppant from the mine site to the well site and was staffed by Hi-Crush employees responsible for the transfer of the proppant into the blender hopper using a proprietary conveyor system ("PropBeast(TM)").

Hi-Crush also announced the formation, with other partners, and initial funding of Proppant Express Investments, LLC ("PropX"), which was established to develop critical last-mile logistics equipment for the proppant industry. PropX is responsible for manufacturing the containers, or pods, and the PropBeast conveyor systems used in Hi-Crush's PropStream integrated delivery solution, designed to allow for safe and cost-efficient transportation of proppant from in-basin terminals to the well site while minimizing fugitive dust.

"The launch of PropStream and our investment in PropX mark critical next steps in Hi-Crush's evolution as a leading provider of frac sand and logistics services to the oil and gas industry," said Robert E. Rasmus, Chief Executive Officer of Hi-Crush. "We are excited to expand our service capabilities with our PropStream integrated delivery solution that is aligned with our goal of delivering frac sand from the mine to the well more efficiently.  The design of this purpose-built equipment and delivery process has been in development over the past year. It is a result of in-depth discussions with our customers, intended to best understand and serve their needs, and looking ahead to the industry's next phase of opportunity. Our ability to expand the reach and delivery of frac sand directly to our customers' usage points elevates our value proposition, grows our potential customer base, and positions us deeper into the sand supply chain.  It also complements our industry-leading transportation network and rounds out the logistics strategy we have been developing over the last several years. We are pleased to have completed our successful pilot test in one of the most demanding basins in the country and are excited to continue the development and build-out of this solution as we meaningfully extend our reach in the industry."

PropStream involves loading frac sand at Hi-Crush in-basin terminals into the PropX pods before being transported by truck. The pods utilize readily available intermodal container chassis or standard flatbeds for transportation, resulting in significant savings in up-front costs versus widely-used pneumatic equipment.  The pods also allow for increased transportation efficiency and a significant reduction in supply chain related congestion at well sites, lowering the number of trucks required per job and significantly reducing or eliminating demurrage costs.   

At the well site, the PropBeast conveyor system is comprised of two conveyor units that significantly reduce noise and dust emissions at the well site due to its fully enclosed environment. By reducing particulate matter emissions from sand operations at the well site by more than 90% versus the widely-used pneumatic alternative, the PropStream solution is designed to provide a viable solution to meet the new OSHA respirable crystalline silica standards set to become effective in 2018, as well as the engineering control obligations set to become effective in 2021.

"The benefits of PropStream are significant and ultimately lead to greater efficiency for our customers," said Laura Fulton, Chief Financial Officer of Hi-Crush. "By moving into the last-mile and developing proficiency and repeatability into the delivery of frac sand at the well site, and even further to the blender, we extend and enhance our ability to provide value to our customers.  By developing a purpose-built solution to simplify and streamline the supply chain, we're able to capture synergies and scale, while significantly minimizing the capital commitments required behind these capability enhancements."

Hi-Crush has committed to invest up to $17.4 million in PropX over the next 12 to 18 months for the manufacturing of PropX pods and PropBeast conveyor systems.

About Hi-Crush
Hi-Crush is an integrated producer, transporter, marketer and distributor of high-quality monocrystalline sand, a specialized mineral that is used as a proppant to enhance the recovery rates of hydrocarbons from oil and natural gas wells.  Our reserves, which are located in Wisconsin, consist of "Northern White" sand, a resource that exists predominately in Wisconsin and limited portions of the upper Midwest region of the United States.  Hi-Crush owns and operates the largest distribution network in the Marcellus and Utica shales, and has distribution capabilities throughout North America. For more information, visit

Forward-Looking Statements
Some of the information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  Forward-looking statements give our current expectations, and contain projections of results of operations or of financial condition, or forecasts of future events. Words such as "may," "assume," "forecast," "position," "predict," "strategy," "expect," "intend," "plan," "estimate," "anticipate," "could," "believe," "project," "budget," "potential," or "continue," and similar expressions are used to identify forward-looking statements. They can be affected by assumptions used or by known or unknown risks or uncertainties. Consequently, no forward-looking statements can be guaranteed. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Hi-Crush's reports filed with the Securities and Exchange Commission ("SEC"), including those described under 1A of Hi-Crush's Form 10-K for the year ended December 31, 2015 and any subsequently filed 10-Q. Actual results may vary materially. You are cautioned not to place undue reliance on any forward-looking statements. You should also understand that it is not possible to predict or identify all such factors and should not consider the risk factors in our reports filed with the SEC or the following list to be a complete statement of all potential risks and uncertainties. Factors that could cause our actual results to differ materially from the results contemplated by such forward looking statements include: the volume of frac sand we are able to sell; the price at which we are able to sell frac sand; the outcome of any litigation, claims or assessments, including unasserted claims; changes in the price and availability of natural gas or electricity; changes in prevailing economic conditions; and difficulty collecting receivables. All forward-looking statements are expressly qualified in their entirety by the foregoing cautionary statements. Hi-Crush's forward-looking statements speak only as of the date made and Hi-Crush undertakes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

Investor contact:
Investor Relations
(713) 980-6270

Marc Silverberg, ICR Inc.
(646) 277-1293