Royal Helium Signs Term Sheet for Project Financing

Saskatoon, Saskatchewan, November 22, 2022 – Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) (“Royal” or the “Company“) is pleased to announce that it has executed a term sheet with an arm’s length lender to provide a USD $20 million three-year credit facility. In accordance with the term sheet, an initial draw on the facility in the amount of USD $10 million will be advanced to the Company upon closing, which is anticipated to occur on or about December 12, 2022. Proceeds will be used for development and production facilities at the Steveville helium field in Alberta, Canada, to begin purchases for Royal’s production facilities in Saskatchewan, Canada and for general corporate purposes.

Mr. Jeff Sheppard, the Chief Financial Officer of Royal states, “This project financing, once closed, covers the remaining costs for the Alberta processing plant, allowing Steveville to begin helium deliveries to our off-take partners by April 2023. The credit facility further allows us to begin procurement for our Saskatchewan processing plants at Climax. This credit facility enables the completion of our plant and equipment and our first sales without the reliance on the equity markets.”

Amounts drawn under the facility are subject to 14% per annum interest. In consideration for the grant of the facility, the Company has agreed to pay the lender a 5% structuring fee and to issue share purchase warrants equal to 9.90% of the issued share capital of the Company at closing, each such warrant exercisable into one common share at a price of CAD $0.35 per common share for a three-year period. Royal will have the right to voluntarily repay, at any time, the principal amount plus interest subject to a minimum interest amount. The facility will be secured by a first charge on the Company’s assets pursuant to a general security agreement and will be subject to customary loan covenants.

Hannam & Partners (UK) acted as financial advisors to the Company in this transaction. Completion of the credit facility and issuance of the warrant consideration is subject to execution of a definitive agreement and TSX Venture Exchange and regulatory approvals.

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 CEO                                                   
Royal Helium Ltd.                                                      
1 (306) 653-2692                                  

Dean Nawata
Manager of Corporate Development
Royal Helium Ltd.
(604) 561-2821


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 negotiation of definitive documents in respect of the loan facility and anticipated closing thereof, anticipated deliveries under Royal’s offtake agreement by April 2023, 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, the ability to procure services and materials necessary to complete the Climax processing plant at the cost and within the timeline anticipated by the Company, 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 for further information and risks applicable to the Company.