SASKATOON, SASKATCHEWAN – July 9, 2020. Royal Helium Ltd., (“Royal” or the “Company”) (TSXV: RHC) announces the closing of its oversubscribed private placement of units (the “Units”) announced on June 15, 2020 and expanded on June 29, 2020. Royal raised proceeds of $1,000,000 through the issuance of 20,000,000 Units at a price of $0.05 per Unit (the “Offering“).

Each Unit consists of one common share in the capital of the Company and one common share purchase warrant. Each warrant entitles the holder to acquire one common share at a price of $0.07 for a period of 12 months. The securities issued under this private placement are subject to a statutory four-month period ending November 10, 2020.

Mr. Andrew Davidson, President and CEO of Royal states “With the financing closed, Royal will be expanding on its exploration plans and finalizing the targets of the initial drilling program for helium in Saskatchewan.”

Under the Offering certain management and insiders acquired 1,770,000 Units in total. Their participation is considered to be a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61- 101“). The transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 by virtue of the exemptions contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 as neither the fair market value of the securities to be distributed in the Offering nor the consideration to be received for those securities, in so far as the Offering involves the insiders, exceeds 25% of the Company’s market capitalization. The Company did not file a material change report in respect of the related party transaction at least 21 days before the closing of this Offering, as the Company was not aware of the level of insider’s participation in the Offering at such time.

Of the 20,000,000 Units issued in the Offering, 800,000 Units were subscribed for by pro group members which have closed in escrow pending final acceptance of the Offering by the TSX Venture Exchange. $3,600 of commissions were paid in conjunction with the financing.

Royal Helium Ltd.

Royal has approximately 400,000 hectares of prospective helium land in south western and south-central Saskatchewan, held as permits, leases and pending permits. All of Royal’s lands are in close proximity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity.

For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.

Andrew Davidson, CEO
Royal Helium Ltd.
1 (306) 281-9104
[email protected]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither 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 release.

This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those 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 forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.