Hi-Crush Partners LP : Hi-Crush Partners LP Reports Fourth Quarter 2012 Results and Acquisition of Preferred Interest in Augusta

   Hi-Crush Partners LP : Hi-Crush Partners LP Reports Fourth Quarter 2012
      Results and Acquisition of Preferred Interest in Augusta Facility

News Release

         Hi-Crush Partners LP Reports Fourth Quarter 2012 Results and
            Acquisition of Preferred Interest in Augusta Facility

Overview of Financial Results

(Thomson Reuters ONE via COMTEX) --Houston, Texas, January 31, 2013 - Hi-Crush
Partners LP (NYSE: HCLP), "Hi-Crush" or the "Partnership", today reported net
income of $9.4 million, or $0.35 per limited partner unit, for the fourth
quarter of 2012.

Revenues for the quarter ended December 31, 2012 totaled $16.2 million and
reflect an average selling price in line with projections. Hi-Crush sold
248,158 tons of frac sand for the quarter ended December 31, 2012, or
approximately 1.2 million tons for the year ended December 31, 2012 for the
predecessor and successor periods combined. For the quarter ended December
31, 2012, distributable cash flow was $9.7 million and earnings before
interest, taxes, depreciation and amortization ("EBITDA") was $10.0 million.

"While we experienced the well-publicized headwinds as a number ofE&P
companies had exhausted their budgets and reduced drilling, we are seeing
increased activity in the first quarter," said Robert Rasmus, Co-Chief
Executive Officer of HCLP. "The underlying market dynamics of renewed
development programs, increased drilling and completion efficiency and the
average number of frac stages per well, combined with strong demand for
premium proppants are all working in our long-term favor as we enter 2013."

On January 17, 2013, Hi-Crush declared its fourth quarter cash distribution of
$0.475 per unit for all common and subordinated units. This amount
corresponds to the minimum quarterly cash distribution of $0.475 per unit, or
$1.90 on an annualized basis.

Acquisition of Preferred Interest in Augusta Facility

Hi-Crush also announced today that it has entered into an agreement with
Hi-Crush Proppants LLC (the "Sponsor") to acquire an interest in Hi-Crush
Augusta LLC ("Augusta"), the entity that owns the Sponsor's Augusta raw frac
sand processing facility, for $37.5 million in cash and 3.75 million of newly
issued convertible Class B units in Hi-Crush. The Sponsor will not receive
distributions on the Class B units unless certain thresholds are met and until
they convert into common units. The preferred interest in Augusta entitles
the Partnership to a preferred distribution of $3.75 million per quarter, or
$15 million annually. This cash flow stream is supported by a long-term, take
or pay contract with an investment grade customer.

"We are delighted to announce our first accretive asset acquisition as a
public company," said Robert Rasmus. "The Augusta plant is a premier facility
providing coarse Northern White frac sand under a long-term contract, and this
interest is expected to generate stable cash flow for the Partnership and its
unitholders for many years to come. Beyond this, our Sponsor has the ability
to execute additional asset contributions to support increased distributions
for our unitholders."

Hi-Crush plans to fund the cash portion of the transaction by drawing on its
existing $100 million revolving credit facility, which is currently undrawn.
The cash proceeds will be used by the Sponsor to repay funded debt incurred
for Augusta's construction.

The equity consideration will consist of Class B units issued to the Sponsor.
The Class B units do not participate in distributions unless and until they
convert into common units. The Class B units are eligible for conversion into
common units once the Partnership has, for two consecutive quarters, (i)
earned $2.31 per common unit, subordinated unit and Class B unit on an
annualized basis and (ii) paid $2.10 per unit in annualized distributions on
each common and subordinated unit, or 110% of the current minimum quarterly
distribution (MQD), and (iii) Hi-Crush's general partner has determined that
Hi-Crush is expected to maintain such performance for at least two succeeding
quarters.

Our Sponsor has also waived an existing right to require that the Partnership
assign to the Sponsor a long-term customer contract for sand produced by the
Partnership's Wyeville facility. As previously disclosed, this contract was
initially scheduled to be assigned from Wyeville to Augusta on May 1, 2013,
but will remain at Wyeville for the duration of the contract.

"We believe this transaction structure reflects our Sponsor's strong support
for the Partnership and its unitholders," said James Whipkey, Co-Chief
Executive Officer of the Partnership. "The Sponsor's Class B units will not
be eligible for conversion until the common units are paid 10 percent more
than their current distribution and the Partnership maintains a minimum 1.1
times coverage ratio. Both of these tests must be maintained for two
consecutive quarters before the Class B units become eligible for conversion.
The Sponsor is also electing to leave in place at the Partnership a
meaningful long-term customer contract that was contractually scheduled
totransferto the Sponsor in May of this year," Mr. Whipkey said. "We
believe the effect of the $3.75 million quarterly preferred distribution
combined with the Partnership's retention of this long-term customer contract
will be to largely replace the cash flow lost from the termination of the
Baker Hughes contract."

Under the agreement, effective January 1, 2013, the Partnership's acquired
interest in Augusta is entitled to the first $3.75 million per quarter in
distributable cash flow of the Augusta facility and will, upon the
satisfaction of certain conditions, but no sooner than March 31, 2018 without
the approval of the Conflicts Committee of the Board of Directors of the
general partner, convert into a 20% common ownership position in Augusta.
Augusta's principal assets include 46.2 million tons of proven reserves on
approximately 1,000 acres, and newly constructed processing facilities with an
annual capacity of 1.6 million tons.

Barclays was the Sponsor's sole financial advisor in the transaction.
Evercore Partners advised the Conflicts Committee of the Board of Directors
of the general partner of the Partnership, which was comprised entirely of
independent directors and approved the transaction.

Earnings Conference Call

A conference call for investors will be held on Friday, February 1, 2012 at
10:00 a.m. Central Time (11:00 a.m. Eastern Time) to discuss Hi-Crush's fourth
quarter results, an update on the Baker Hughes matter and the Augusta
transaction. Hosting the call will be Robert E. Rasmus, Co-Chief Executive
Officer, James M. Whipkey, Co-Chief Executive Officer and Laura C. Fulton,
Chief Financial Officer.

The call can be accessed live over the telephone by dialing (877) 705-6003, or
for international callers, (201) 493-6725. A replay will be available shortly
after the call and can be accessed by dialing (877) 870-5176, or for
international callers (858) 384-5517. The passcode for the replay is 408118.
The replay will be available until February 15, 2013.

Interested parties may also listen to a simultaneous webcast of the conference
call by logging onto Hi-Crush's website at www.hicrushpartners.com in the
Investors-Event Calendar and Presentations section. A replay of the webcast
will also be available for approximately 30 days following the call.

The slide presentation to be referenced on the call will also be on Hi-Crush's
website at www.hicrushpartners.com in the Investors-Event Calendar and
Presentations section.

Non-GAAP Financial Measures

This news release and the accompanying schedules include the non-GAAP
financial measure of EBITDA, Distributable Cash Flow and Production Costs,
which may be used periodically by management when discussing our financial
results with investors and analysts. The accompanying schedules of this news
release provide reconciliations of these non-GAAP financial measures to their
most directly comparable financial measures calculated and presented in
accordance with generally accepted accounting principles in the United States
of America ("GAAP"). EBITDA, Distributable Cash Flow and Production Costs are
presented as management believes the data provides a measure of operating
performance that is unaffected by historical cost basis and provides
additional information and metrics relative to the performance of our
business.

Distributions to Foreign Investors

The declaration of the distribution is intended to be a qualified notice to
nominees under Treasury Regulation Section 1.1446-4(b), with 100% of the
Partnership's distributions to foreign investors attributable to income that
is effectively connected with a United States trade or business. Accordingly,
the Partnership's distributions to foreign investors are subject to federal
income tax withholding at the highest effective tax rate.

About Hi-Crush

Hi-Crush is a domestic producer of monocrystalline sand, a specialized mineral
that is used as a "proppant" (frac sand) to enhance the recovery rates of
hydrocarbons from oil and natural gas wells. Our reserves, which are located
in Wyeville, 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. For more information, visit
www.hicrushpartners.com.

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 prospectus relating to its initial public offering
filed with the Securities and Exchange Commission ("SEC"). 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 pending litigation; 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
ir@hicrushpartners.com
(713) 960-4811

Unaudited Condensed Consolidated Statement of Operations
(Amounts in thousands, except tons, units and per unit amounts)

                                            Three Months       Three Months
                                                Ended              Ended
                                          December 31, 2012  December 31, 2011
                                              Successor         Predecessor
Revenues                                           $ 16,215           $ 12,678
Cost of goods sold (including                         4,313              3,949
depreciation & depletion)
Gross profit                                         11,902              8,729
Operating costs and expenses:
General and administrative                            2,203              1,159
Exploration expense                                      64                288
Accretion of asset retirement obligation                 53                 15
Income from operations                                9,582              7,267
Other (income) expense:
Other income                                            -                 - 
Interest expense                                        183              1,133
Net income                                          $ 9,399            $ 6,134
Earnings per unit:
Common units                                         $ 0.35
Subordinated units                                   $ 0.35
Limited partner units outstanding:
Common units                                     13,640,351
Subordinated units                               13,640,351

Unaudited Condensed Consolidated Statement of Operations
(Amounts in thousands, except tons, units and per unit amounts)

                                Period From      Period From
                                 August 16        January 1          Year
                                  Through          Through           Ended
                               Dec. 31, 2012    Aug. 15, 2012    Dec. 31, 2011
                                 Successor       Predecessor      Predecessor
Revenues                            $ 28,858            $ 46,776      $ 20,353
Cost of goods sold (including          7,145              13,336         6,447
depreciation and depletion)
Gross profit                          21,713              33,440        13,906
Operating costs and expenses:
General and administrative             2,795               4,631         2,324
Exploration expense                       91                 539           381
Accretion of asset retirement             56                  16            28
obligation
Income (loss) from operations         18,771              28,254        11,173
Other (income) expense:
Other income                             -                 (6)           - 
Interest expense                         263                   1,893
                                                           3,240
Net income                          $ 18,508            $ 25,020       $ 9,280
Earnings per unit:
Common units                          $ 0.68
Subordinated units                    $ 0.68
Limited partner units
outstanding:
Common units                      13,640,351
Subordinated units                13,640,351

Unaudited EBITDA and Distributable Cash Flow

(Amounts in thousands)

                                            Three Months       Three Months
                                                Ended              Ended
                                          December 31, 2012  December 31, 2011
                                              Successor         Predecessor
Reconciliation of EBITDA & Distributable
Cash Flow to Net Income:
Net income                                          $ 9,399            $ 6,134
Taxes                                                   -                 - 
Depreciation and depletion                              468                143
Interest expense, net                                   183              1,133
EBITDA                                             $ 10,050            $ 7,410
Less:
 Cash interest paid                                 (93)
 Maintenance and replacement capital expenditures,
   incl. accrual for reserve                      (335)
replacement (1)
Add: Accretion of asset retirement                       53
obligation
Distributable Cash Flow (2)                         $ 9,675

                              Period From     Period From
                               August 16       January 1           Year
                                Through         Through            Ended
                              December 31,  August 15, 2012  December 31, 2011
                                  2012
                               Successor      Predecessor       Predecessor
Reconciliation of EBITDA &
Distributable Cash Flow to
Net Income:
Net income                        $ 18,508         $ 25,020            $ 9,280
Taxes                                  -               -                 - 
Depreciation and depletion             863            1,089                449
Interest expense, net                  263            3,240              1,893
EBITDA                            $ 19,634         $ 29,349           $ 11,622
Less:
 Cash interest paid               (136)
 Maintenance and replacement capital
expenditures,
   incl. accrual for             (593)
reserve replacement (1)
Add: Accretion of asset                 56
retirement obligation
Distributable Cash Flow (2)       $ 18,961

1.Maintenance and replacement  capital expenditures,  including accrual  for 
    reserve  replacement,  were  determined  based  on  an  estimated  reserve 
    replacement cost of $1.35  per ton sold during  the period from August  16 
    through December  31, 2012.  Such expenditures  include those  associated 
    with the replacement of  equipment and sand reserves,  to the extent  that 
    such expenditures are made to  maintain our long-term operating  capacity. 
    The amount presented does not represent a reserve or requirement to spend
    the capital.

2.Consistent with  our intention  to  pay a  prorated distribution  for  the 
    period  from  the  completion  of  our  initial  public  offering  through 
    September 30, 2012, this represents  distributable cash flow for the  same 
    period plus the  quarter ended  December 31, 2012.  As such,  it does  not 
    reflect the  amount  of cash  flow  that  would have  been  available  for 
    distribution over an entire two fiscal quarters.

Unaudited Condensed Consolidated Cash Flow Information

(Amounts in thousands)

                                    Period From    Period From
                                     August 16      January 1        Year
                                      Through        Through         Ended
                                   Dec. 31, 2012  Aug. 15, 2012  Dec. 31, 2011
                                     Successor     Predecessor    Predecessor
Depreciation and depletion                 $ 863        $ 1,089          $ 449
Net cash provided by operating            18,383         16,660         18,788
activities
Net cash used in investing              (2,239)       (80,045)      (50,199)
activities
Net cash provided (used) by             (7,631)         61,048         42,465
financing activities
Net increase (decrease) in cash            8,513       (2,337)         11,054

Unaudited Condensed Consolidated Balance Sheet
(Amounts in thousands)

                                        December 31,  December 31,
                                            2012          2011
                                         Successor    Predecessor
Assets
Current assets
Cash                                        $ 10,498      $ 11,054
Restricted cash                                  -             30
Accounts receivable                            8,199         4,026
Inventories                                    3,541         2,374
Due from Sponsor                               5,615           - 
Prepaid exp. & other current assets              393           294
Total current assets                          28,246        17,778
Property, plant and equipment, net            72,844        52,708
Deferred charges, net                          1,095         1,743
Total Assets                               $ 102,185      $ 72,229
Liabilities and Partners' Capital
Current liabilities
Accounts payable                             $ 1,977       $ 4,954
Accrued liabilities                            1,756           866
Deferred revenue                               1,714         9,178
Total current liabilities                      5,447        14,998
Long-term debt                                   -         46,112
Asset retirement obligation                    1,555           832
Total liabilities                              7,002        61,942
Total Partners' Capital                       95,183        10,287
Total Liabilities and Partners' Capital    $ 102,185      $ 72,229

Unaudited Production Cost Per Ton

                                   4Q 2012                          4Q 2011
Sand Sold (tons)                    248,158                           206,557
Production costs ($ in thousands)   $ 3,845                           $ 3,806
Production costs per ton            $ 15.49                           $ 18.43
                                                                          
                                           12 months              12 months
                                              ended                  ended
                                            12/31/2012             12/31/2011
                                  Combined  Successor  Predecessor
Sand Sold (tons)                  1,165,818    439,604     726,214    332,593
Production costs ($ in thousands)  $ 18,529    $ 6,282    $ 12,247    $ 5,998
Production costs per ton            $ 15.89    $ 14.29     $ 16.86    $ 18.03

Unaudited Reconciliation of Production Costs to Cost of Goods Sold

(Amounts in thousands)

                           4Q 2012                            4Q 2011
Cost of goods sold          $ 4,313                             $ 3,949
Depreciation and depletion   (468)                              (143)
Production costs            $ 3,845                             $ 3,806
                                    12 months                12 months
                                      ended                    ended
                                    12/31/2012               12/31/2012
                          Combined Successor  Predecessor 
Cost of goods sold         $ 20,481    $ 7,145    $ 13,336      $ 6,447
Depreciation and depletion (1,952)     (863)    (1,089)        (449)
Production costs           $ 18,529    $ 6,282    $ 12,247      $ 5,998

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Source: Hi-Crush Partners LP via Thomson Reuters ONE
HUG#1674382