Saskatchewan

In January 2021, Royal Helium commenced its maiden drill program on the Climax land block and drilled three wells to a total depth (TD) of approximately 2600 meters. Economic helium concentrations were announced in April 2021, with tests returning levels ranging from 0.33% to 0.64% helium from the Deadwood, Souris River and Duperow formations, with initial high-graded production zones being tested ranging in thickness from five meters to in excess of 30 meters.

Subsequently, further examination and interpretation of drilling at the Climax project discovered a 39-meter helium bearing zone at Climax-3 in the basal Deadwood “Regolith” which was a previously unknown helium bearing sequence. The same zone was also intersected at Climax-2 and the Company seismically mapped the new zone, renamed the Climax “Nazare” zone, over a total area of 32 square kilometers (12.3 mi2). Based on internal estimates, Royal estimates total helium in-place within the Climax Nazare zone across the prospective area to be between approximately 2.5 billion cubic feet (“Bcf”) (low-case) and 6.0 Bcf (high case). Detailed geological, rock mechanics, and engineering work has been taking place to develop the optimal horizontal wellbore design and technologies to drill into the Nazare formation to exploit large volumes of helium bearing gas. Based on the results to date from various specialized consultants, Royal has expanded the development program for the Climax Group and has applied for additional well licences on the block.

Through the collection and analyzing of newly acquired 2D & 3D seismic datasets, Royal has developed a portfolio of many conventional helium targets to exploit the large structures within the Devonian and Cambrian sections as well as a future horizontal well that will be placed into the Nazare once all of the work has been completed to de-risk the ‘resource type play’ further.

In addition to the development work at Climax, the Company intends to drill additional helium wells in its southwestern land packages in Cadillac and Val Marie that have offsetting competitor helium production in close vicinity. The southeastern land parcels, which is a vast area that historically, contains some of the highest helium shows in the province will undergo exploration drilling to be developed into an extension of largescale helium producing fairway from southwestern producing fields. Royal has completed its seismic evaluations and is undertaking the work required to license wells on multiple properties in W2 (West of 2^nd Meridian) or better known as southeastern Saskatchewan.

To date, Royal Helium has drilled 7 wells in Saskatchewan – including Climax (4 wells), Val Marie (1 well drilled) and Ogema (2 wells drilled) – all of which displayed economic grades of helium concentration. Royal plans to further drill and develop our Saskatchewan projects with the goal of bringing them into production in the future.