A binder slurry for a continuous filament mat used in a phenolic pultrusion system comprising a phenolic compatible silane, a non-ionic surfactant, a defoamer, water, an organic acid and a bisphenol epoxy powdered resin having a thermally active dicyandiamide cross-linking resin. The binder slurry resin is unique in that the bisphenol epoxy powdered resin having a thermally active dicyandiamide cross-linking resin is compatable with presently available phenolic resins, and as such pultruded parts made have improved surface and mechanical properties as compared with traditional polyester type binder slurries which are not compatable with phenolic resins. Continuous filament mats made with the new binder slurry also may also be made into epoxy prepreg that can be used to make composite parts.