SASKATOON, SASKATCHEWAN – September 21, 2022. Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) is pleased to report that following up on the previously announced lithium assays in Climax-1 (see news release Aug 22, 2022) it has also sampled up to 81.3 Mg/L lithium brine at Climax-2 on Royal’s Climax helium land block located approximately 160 km south of Swift Current in southwest Saksatchewan. Climax-2 is approximately 2.7 kilometers southeast of Climax-1 with both wells testing the lithium bearing brine zone within the Duperow formation. With the more detailed 3D seismic Royal conducted this year, it is believed that the Climax-2 lithium brine zone is an extension of the same pool found in Climax-1 and appears to extend well beyond the current 3D coverage area which will be expanded and tested in upcoming programs. Further engineering and analysis will be conducted once the Climax mineral rights are granted.
Andrew Davidson, President, and CEO of Royal comments: “These tests not only continue to show some of the highest lithium assays in western Canada but are also indicating a very large potential pool size which really substantiates our reasoning to develop this lithium play further. As indicated in our previous news release, we have already applied for the mineral rights to all of Climax and are awaiting issuance from the province”.
The Climax project is approximately 60,000 hectares in size, which would make for one of the largest lithium exploration projects in Western Canada. The Company will explore all options for developing the lithium project, such that the focus of the Company will remain on exploiting the helium already discovered at Climax and elsewhere.
Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land in southern Saskatchewan and southern Alberta. All of Royals’ lands are in close vicinity 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 the Company.
Andrew Davidson President and CEO Royal Helium Ltd. 1 (306) 653-2695 [email protected]
Dean Nawata Corporate Development Royal Helium Ltd. (604) 561-2821 [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.
Saskatoon, Saskatchewan, September 20, 2022 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to report that it has received a Competent Person’s Report (“CPR“) from GLJ Ltd. of Calgary, Alberta, Canada, dated August 19, 2022, with an effective date of July 31, 2022, which provides an independent resources assessment and evaluation of Royal’s material helium assets to date. This CPR has been compiled in accordance with the guidelines and scope as set out in the AIM Note for Mining and Oil & Gas Companies (which forms part of the AIM Rules for Companies) in connection with the proposed listing of Company’s shares on the AIM of the London Stock Exchange (see news release dated August 17, 2022).
Resources highlights from Royal’s Steveville and Nazare helium assets are set out in Table 1 and Net Present Values of Future Net Revenue for Steveville in Table 2 following. The Company also intends to obtain reports on its Climax conventional, Ogema and Val Marie wells in due course as additional work and testing data is compiled.
Andrew Davidson, President and CEO, Royal comments, “We are pleased to receive this independent third-party evaluation from GLJ Ltd. In addition to being a regulatory requirement as part of the Company’s proposed listing on AIM, for us it affirms initial resources and economics that substantiates our first off-take sales agreement with a minimum delivery (no maximum) to our off-take partner of approximately 40% of the Steveville plant capacity. As for Nazare, a P50 at 114 meters (375 feet) of pay thickness, 1.298 billion cubic feet of helium is extraordinary considering it is still constrained to 27 sq km (14 sq miles) with limited 3D seismic area. We look to drill our first horizontal well into Nazare between Q4 2022 and Q1 2023 and additionally, we have only explored 6% of the Climax land block with an additional 10 conventional targets in our near-term drill plans.”
Table 1
*GLJ Ltd. CPR effective date July 31, 2022
Table 2 highlights the Unrisked and Risked Net Present Values, at discount rates of 0% to 20% (Before Income Taxes) associated with the Marketable Resource values attributed to the Steveville, Alberta asset indicated in Table 1.
*GLJ Ltd. CPR effective date July 31, 2022
Shayne Neigum, Chief Operating Officer, Royal comments, “The best estimate of risked contingent resources – development pending for Steveville has a risked net present value at 10% (before income taxes) of $22,192,000 for the 145 million cubic feet of company interest risked contingent marketable helium resources, which equates to an in-the-ground value of $153 per thousand cubic feet, after accounting for future capital expenditures, including the construction of a Helium Processing Plant and all pipelines, as well as future royalties, operating and maintenance expenses. This risked metric gives Royal the confidence to proceed with the installation of a gathering system and processing infrastructure at Steveville. The metrics provided by the GLJ Ltd. report are a compelling incentive to accelerate the development of Nazare as well as Climax conventional, Ogema, Val Marie and other land blocks in Saskatchewan and Alberta.”
*Important report notes: This CPR has been compiled in accordance with the guidelines and scope and content of a CPR, as set out in the AIM Rules for Companies including the “Note for Mining and Oil & Gas Companies”, as published by the London Stock Exchange in June 2009, for the purposes of publication in an AIM admission document. The effective date of this evaluation is July 31, 2022. GLJ Ltd is located at 1920, 401 – 9th Avenue SW, Calgary, Alberta, Canada, T2P 3C5.
It is understood that the Company is not currently required, nor able to file a compliant National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (“NI 51-101“) report under current regulations but for this analysis the methodology used to estimate resources as outlined in NI 51-101 will be applied. Included in the evaluation is an estimation of volume and value of helium associated with the hydrocarbons. The analysis of helium resources follows the same methodology as the analysis of hydrocarbons, as defined in NI 51-101 and the Canadian Oil and Gas Evaluation Handbook (the “COGEH“). This evaluation has been prepared to be consistent with reserves and resources definitions, standards and procedures contained in the COGEH; however, this evaluation is associated with discovered and undiscovered helium resources. The results of this evaluation would be the same or immaterially different under the use of procedures and standards contained in the Petroleum Resources Management System of the Society of Petroleum Engineers.
About Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land across southern Saskatchewan and southeastern Alberta. All of Royal’s lands are in close vicinity 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. Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (“GHG“) and therefore has a low GHG footprint when compared to other jurisdictions that rely 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.
For more information, please contact the Company.
Andrew Davidson President and Chief Executive Officer Royal Helium Ltd. 1 (306) 653-2692 [email protected]
Dean Nawata Manager of Corporate Development Royal Helium Ltd. (604) 561-2821 [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 news release.
This news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this news release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including anticipated deliveries under Royal’s offtake agreement, anticipated drilling of the Nazare horizontal well and other drilling plans, the intended construction of a Steveville Helium Processing Plant and pipelines and accelerated development of the Company’s other assets. In addition, all references to resources are deemed to be forward-looking statements as they involve the implied assessment, based on certain estimates and assumptions, that the resources described exist in the quantities predicted or estimated and can be profitably produced in the future. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the Company’s control, including without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, volatility in production rates, environmental risks, inability to obtain drilling rigs or other services, capital expenditure costs, including drilling, completion and facility costs, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required third party and regulatory approvals, ability to access sufficient capital from internal and external sources, inability to access gas transportation and processing infrastructure, the impact of general economic conditions in Canada, the United States and overseas, industry conditions, changes in laws and regulations (including the adoption of new environmental laws and regulations) and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in foreign exchange or interest rates, and the uncertainty of estimates and projections of production, costs and expenses. 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 and risks applicable to the Company.
Saskatoon, Saskatchewan, September 14, 2022 – Royal Helium Ltd. (TSXV: RHC) (“Royal” or the “Company“) is pleased to announce the results of the Company’s annual general and special meeting of shareholders (the “Meeting“) which was held today. All matters presented to shareholders for approval as set out in the Company’s notice of meeting and management information circular dated September 14, 2022 (the “Circular“) were approved by an overwhelming majority of the votes cast for the Meeting. Resolutions approved were to fix the number of directors of the Company at seven, the appointment of KPMG LLP, Chartered Professional Accountants as auditors of Royal, the approval of the Company’s stock option plan in accordance with TSX Venture Exchange Policy 4.4 – Security Based Compensation and the approval of amendments to the articles of Royal. The voting results for the election of the directors of the Company were as follows:
Director
Votes For #
Votes For %
Withheld
Votes Withheld %
Andrew Davidson
25,026,020
97.59
618,412
2.45
John Pringle
25,465,081
99.30
179,351
0.71
Jeffrey Sheppard
25,392,491
99.02
251,941
1.00
Martin Wood
25,459,677
99.28
184,755
0.73
Sylvain Laberge
25,398,802
99.04
245,630
0.97
R. Campbell Becher
25,460,444
99.28
183,988
0.73
Samuel Kyler Hardy
25,148,029
98.06
496,403
1.96
Voting results for the other items of business at the Meeting, all as more particular described in the Circular, were as follows:
Votes For #
Votes For %
Against
Votes Against %
Fixing Number of Directors at Seven
25,544,129
99.61
100,303
0.40
Approval of Stock Option Plan
24,051,951
93.79
1,592,481
6.30
Amendment to the Company’s Articles
24,506,938
99.44
137,494
0.54
Votes For #
Votes For %
Withheld
Votes Withheld %
Appointment of Auditors
27,697,622
99.75
70,497
0.26
Andrew Davidson, President and Chief Executive Officer of Royal comments, “We would like to thank the shareholders for their overwhelming support at today’s Meeting. We look forward to an exciting year ahead as we transition from a helium exploration company to a truly integrated helium exploration, production and sales company.”
Filing of Shelf Prospectus
Royal announces that it has filed a preliminary short form base shelf prospectus with the securities regulatory authorities in each of the provinces of Canada, except the Province of Québec.
The shelf prospectus will, subject to regulatory requirements and approval, provide for the potential offering in Canada of up to an aggregate of CAD$200 million of Royal’s common shares, debt securities, subscription receipts and units from time to time over a 25-month period after applicable Canadian securities regulatory authorities have issued a receipt for the final short form base shelf prospectus.
The shelf prospectus is being filed to provide Royal the flexibility to take advantage of financing opportunities from time to time and as market conditions dictate. The terms of such future offerings, if any, will be established at the time of such offerings. At the time any of the securities covered by the shelf prospectus are offered for sale, a prospectus supplement containing specific information about the terms of any such offering will be filed with applicable Canadian securities regulatory authorities and is also subject to TSX Venture Exchange review and acceptance.
About Royal Helium Ltd.
Royal controls over 1,000,000 acres of prospective helium land across southern Saskatchewan and southeastern Alberta. All of Royal’s lands are in close vicinity 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. Royal’s helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (“GHG“) and therefore has a low GHG footprint when compared to other jurisdictions that rely 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.
For more information, please contact the Company.
Andrew Davidson President and Chief Executive Officer Royal Helium Ltd. 1 (306) 653-2692 [email protected]
Dean Nawata Manager of Corporate Development Royal Helium Ltd. (604) 561-2821 [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 news release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this news 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.
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