Marketing assets

Royal Helium Receives Independent Helium Resource Assessment for Steveville and Nazare

SASKATOON, Sask., September 20, 2022 /CNW/ – Royal Helium Ltd. ( TSXV: CHR) ( TSXV: RHC.WT) (OTCQB: RHCCF) (“Royal“or the”Company“) is pleased to announce that it has received a report from the competent person (“CPR“) of GLJ Ltd. of Calgary, Alberta, Canadadate August 19, 2022with an effective date of July 31, 2022, which provides an independent resource assessment and valuation of Royal’s helium material assets to date. This CPR has been compiled in accordance with the guidelines and scope set out in the AIM Notice for Mining, Oil and Gas Companies (part of the AIM Rules for Companies) in relation to the proposed listing of the Company’s shares on the AIM of the London Stock Exchange (see the press release of the August 17, 2022).

The main resources of Royal’s helium assets at Steveville and Nazare are shown in Table 1 and the net present values ​​of future net revenues for Steveville in Table 2 below. The Company also intends to obtain reports on its Climax conventional, Ogema and Val Marie wells in a timely manner as additional work and test data is compiled.

Andre DavidsonChairman and CEO of Royal comments: “We are delighted to receive this independent assessment from GLJ Ltd. In addition to being a regulatory requirement as part of the company’s proposed listing on AIM, it confirms for us the initial resources and economics which confirms our first sale-on-pickup agreement with minimum delivery. (no maximum) to our removal partner of approximately 40% of the capacity of the Steveville plant. As for Nazare, a P50 at 114 meters (375 feet) thick, 1,298 billion cubic feet of helium is extraordinary given that it is still limited to 27 km² (14 square miles) with a seismic zone 3D limited. We plan to drill our first horizontal well in Nazare between Q4 2022 and Q1 2023 and furthermore we have only explored 6% of the Climax block of land with 10 additional conventional targets in our near term drill plans.”



*

GLJ Ltd. CPR effective date July 31, 2022



Table 2 highlights the risk-free and risk-free net present values, at discount rates of 0% to 20% (before income taxes) associated with the market resource values ​​attributed to the Steveville, alberta asset listed in Table 1.



*

GLJ Ltd. CPR effective date July 31, 2022



Shayne NeigumChief Operating Officer, Royal commented: “The best estimate of contingent resources at risk – ongoing development for Steveville has a 10% net present value at risk (pre-tax) of $22,192,000 for the company’s 145 million cubic feet of interest, contingent marketable helium resources were at risk, which equates to an in-ground value of $153 per thousand cubic feet, after taking into account future capital expenditures, including the construction of a helium processing plant and all pipelines, as well as future royalties, operating and maintenance expenditures . This risky step gives Royal the confidence to proceed with the installation of a collection system and treatment infrastructure in Steveville. The measurements provided by the GLJ Ltd. are a convincing incentive to accelerate the development of Nazare as well as Climax conventional, Ogema, Val Marie and other blocks of land in Saskatchewan and alberta.”

*Important notes from the report: This CPR has been compiled in accordance with the guidelines, scope and content of a CPR, as set forth in the AIM Rules for Companies, including the “Note for Mining, Oil and Gas Companies”, as published by the London Stock Exchange in June 2009, for publication in an AIM admissions document. The effective date of this assessment is July 31, 2022. GLJ Ltd is located at 1920, 401 – 9e Avenue SW, Calgary, Alberta, CanadaT2P 3C5.

It is understood that the Company is not currently required or able to file a National Instrument 51-101 – Disclosure standards for oil and gas activities (“National Instrument 51-101“) report under applicable regulations, but for this analysis, the methodology used to estimate resources, as described in NI 51-101, will be applied. The assessment includes an estimate of the volume and value of helium associated with hydrocarbons.Helium resource analysis follows the same methodology as hydrocarbon analysis, as defined in NI 51-101 and the Canadian Oil and Gas Evaluation Handbook (the “COGEHThis assessment has been prepared to conform to the definitions, standards and procedures for reserves and resources contained in the COGEH; however, this assessment is associated with discovered and undiscovered helium resources. The results of this assessment would be identical. or slightly different in using the procedures and standards contained in the Society of Petroleum Engineers Petroleum Resource Management System.

About Royal Helium Ltd.

Royal controls over 1,000,000 acres of potential helium land in the south Saskatchewan and southeast alberta. All of Royal’s lands are close to highways, roads, towns and, most importantly, close to existing oil and gas infrastructure, with a significant portion of its lands near existing helium production sites. With stable and rising prices and limited, non-renewable sources of helium around the world, Royal intends to become one of North America’s leading producers of this valuable product. Royal’s helium tanks are transported primarily with nitrogen. Nitrogen is not considered a greenhouse gas.GHG“) and therefore has a low GHG footprint compared to other jurisdictions that depend on large-scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and alberta can be up to 99% less carbon intensive than helium extraction processes in other jurisdictions.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

This press release contains certain statements that may be considered “forward-looking statements”. All statements in this press release, other than statements of historical fact, that address events or developments expected by the company’s management, are forward-looking statements, including expected deliveries under the Royal’s offtake agreement, the planned drilling of the Nazare horizontal well and other planned drilling, the planned construction of a Steveville helium processing plant and pipelines and the accelerated development of the Company’s other assets. In addition, all references to resources are considered forward-looking statements because they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities anticipated or estimated and can be produced profitably at coming. These forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company’s control, including, without limitation, risks associated with the exploration, development, operation, production, marketing and transportation of oil and gas, loss of markets, commodity price volatility, production rate volatility, environmental risks, inability to obtain drilling rigs or other services, capital expenditures , including costs of drilling, completion and installation, unexpected well decline rates, wells not performing as expected, resulting delays or inability to obtain required regulatory and third-party approvals, the ability to access sufficient capital from internal and external sources, the inability to access gas transportation and processing infrastructure, the impact of general economic conditions in Canada, United States and abroad, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in the way they are interpreted and enforced, increased competition, lack of qualified personnel or management, fluctuations in exchange rates or interest rates and the uncertainty of estimates and projections of production, costs and expenses. Although management believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance, and actual results or developments may differ materially from those contained in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in the forward-looking statements include market prices, exploration and development success, the continued availability of capital and financing, and general economic conditions. , market or business. Please see the Company’s public documents at www.sedar.com for more information and the risks applicable to the Company.

SOURCE Royal Helium Ltd.

For further information: Please contact the company: Andrew Davidson, President and Chief Executive Officer, Royal Helium Ltd., 1 (306) 653-2692, [email protected]; Dean Nawata, Director of Corporate Development, Royal Helium Ltd., (604) 561-2821, [email protected]