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Cadre Services Expands Material Products Division Announces Purchase of 850 Acres of Ranchland & Plans to Construct Sand Mining and Processing Plant

HOUSTON, Texas, January 7, 2009 — Cadre Services, Inc. today announced the expansion of its Material Products Division with the purchase of 850 acres near Voca, Texas. Cadre intends to construct a sand processing plant while mining the property to produce high-quality, high-demand frac sand materials that enhance production of oil and gas wells.

Frac–sand proppants are hard, spherical particles that are mixed with a fluid and pumped into wells at very high pressure. The proppants fracture hydrocarbon-bearing rock to create channels where oil reserves and gases flow more easily. Proppants remain in place after the fracture job is completed, propping open the cracks and creating a highly permeable pathway for oil and gas flow.

“Demand for high-quality frac-sand proppants has outpaced supply as reserves have declined and oil and gas drilling has increased. The material from this new facility will significantly increase the supply of proppant, positioning Cadre as a key player in this market. This acquisition and green-field development complements our existing line of products and services and is in line with our vision and strategic growth in specific areas of interest,” said Maury Dumba, president.

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