Polaris Materials Announces Termination of Strategic Alliance with CEMEX

VANCOUVER, June 13, 2017

VANCOUVER, June 13, 2017 /PRNewswire/ - Polaris Materials Corporation ("Polaris", the "Company" or "we") (TSX:PLS) announces that Polaris, and its subsidiary Eagle Rock Aggregates, Inc. ("ERA") have provided notice of their election not to renew the strategic alliance agreement (the "SAA") and related joint co-operation and development agreements (the "JCDA"s) with CEMEX, Inc. ("CEMEX"). The agreements will now terminate in accordance with their terms on September 25, 2017.  ERA and CEMEX remain bound by the terms of an aggregate supply and distribution agreement (the "ASDA") which provides for certain exclusive marketing and distribution rights in parts of the Northern California market, and which has an initial term expiring on September 25, 2027.

The SAA originally provided for high-level co-operation in the development of new markets by both companies, aided by detailed terms for sharing the risk and reward of joint investment opportunities via the JCDAs.  However, changes in market conditions since 2007, Polaris' independent development and operation of its terminal in Long Beach, California and development of the Fine Sand product, as well as CEMEX's recent decision to sell certain assets in Washington and Oregon, have removed many of the factors which led to the creation of the strategic alliance.

The Company sees the potential for a number of compelling business opportunities in markets on the west coast including Seattle, Portland, and Southern California, including San Diego, as well as further opportunities in Hawaii and other areas.  The termination of the SAA and the JCDAs provides Polaris with improved strategic flexibility to achieve our objectives in these markets. 

CEMEX has been, and continues to be, a valued partner to Polaris in the Northern California market, and we look forward to continuing to work closely with them, and advancing our joint business interests in this region pursuant to the ASDA.  The conclusion of the SAA does not prevent the companies from working together in the future in other markets where a relationship is mutually beneficial.

Ken Palko, President and CEO commented: "We appreciate the invaluable assistance provided by CEMEX in helping Polaris establish itself, and look forward to many more years of working together in Northern California.  However, we believe that the flexibility to choose the right partner for the right markets will be more advantageous for our business going forward.  We are well positioned to supply our high quality concrete aggregate and fine sand to numerous west coast markets, and we now have the proven track record and the expertise to truly differentiate ourselves from our competition."

About Polaris Materials Corporation:
Polaris Materials Corporation is engaged in the development and operation of construction aggregate quarries in Canada to supply distribution facilities in the United States through coastal shipping. The Company's active construction aggregate interests consist of its Orca Sand and Gravel Quarry in British Columbia and two associated receiving terminals in Richmond and Long Beach, California. The Company also owns the Black Bear Project located in close proximity to the Orca Quarry, and a controlling interest in the Eagle Rock Quarry Project, located on the south coast of Vancouver Island.