Canadian Pacific and U.S. Silica Holdings, Inc. announce multi-year agreement for the transport of frac sand

Canadian Pacific Railway Limited

and U.S. Silica Holdings, Inc.

, today announced a multi-year agreement for the movement of frac sand from U.S. Silica's newest mining and processing facility in Sparta, Wisconsin. U.S. Silica is the second largest domestic producer of commercial silica, a specialized mineral that is a critical input into oil and gas shale production and various industrial and specialty products. The Company is building a new frac sand facility located on the CP's rail line in Sparta, Wisconsin that will produce high quality Northern White sand for use in shale basins across the United States and Canada. Under the agreement, CP will become the exclusive rail service provider at this facility for the movement of U.S. Silica's frac sand to destination markets. The design of the Sparta facility will allow U.S. Silica to build unit trains of frac sand with a focus on shipments into the Bakken shale in North Dakota to support the area's growing need for proppant. The facility will produce and ship three different grades of dry sand and is expected to be fully operational in the first quarter of 2013.