Helium Evolution expands and accelerates drilling program through enhanced farmout with Helium in North America, The Canadian Business Journal

• North America Helium (NAH) will drill the first two test wells on HEVI land in Q4 2022 and a third in the first half of 2023. The cost will be 100% funded by NAH and HEVI will retain his 20% operating interest.
• Building on the success of three test wells, NAH commits to expeditious drilling of development wells with acquired farm-out blocks
• A new seismic option and seismic review option contract with NAH could increase the number of wells drilled from five to up to eight, an increase of up to 60%.
• HEVI received NAH’s own seismometer free of charge and was recently used to drill three successful NAH wells

Calgary, Alberta, October 21, 2022 (GLOBE NEWSWIRE) — Helium Evolution Incorporated (TSXV: HEVI) (“Heavy” or “Company), a Canada-based helium exploration and production company focused on asset development in southern Saskatchewan, is pleased to announce enhancements and modifications to its existing farm-out agreement with Helium North America ( “no”), through execution of the amended and restated farm-out agreement dated October 20.^th2022 (“farm out fix”). A modified Farmout will provide his HEVI short-term drilling catalyst to accelerate cash flow generation without incurring initial capital costs, allowing the company to retain his 99% of the land base. HEVI will also receive, at no charge, NAH’s own seismic surveys recently used to drill three successful NAH wells in the Mancota region, giving HEVI greater insight and valuable data that can be used to identify future targets. can be obtained.

Partnering with an industry leader such as NAH, the world’s most active helium well driller, provides significant advantages for HEVI. As a result of partnering with NAH and implementing this modified firm-out, HEVI will benefit from NAH’s continued research and development of its asset base and will be able to leverage its extensive data, learning and You are in an ideal position to leverage your expertise. semester. NAH’s farm-in saves HEVI approximately $10 million in cash and liquidity while maintaining financial flexibility and future options for other goals with the Company’s 5.5 million acre helium rights. can be pursued.

As part of the modified farm-out, HEVI and NAH also signed a new seismic option agreement (seeSeismic Option Contract”) and Seismic Option Review Agreement (“Seismic Option Study Contract”) (and with the seismic option contract, “Seismic AgreementThis could increase the number of wells drilled by NAH by 60%, from the original five to a maximum of eight. The amended farm-out supersedes the original farm-out signed with NAH on June 28, 2022 (“original farm out”), maintaining all earnings terms and post-earning operations from the original farm-out.

“This modified farmout will give us multiple near-term drilling catalysts, including two exploration wells by the end of 2022 and a third drilling in the first half of 2023, keeping HEVI focused on other helium. HEVI President and CEO Greg Robb said: “Furthermore, NAH will continue to operate the five pits envisioned in the original farm-out as a result of the seismic accord. to 8 wells, an increase of about 60%.The modified farm-out will allow HEVI to explore and develop internally generated targets in our vast land base. It allows us to maintain the option to continue and at the same time gives our shareholders the visibility to start production without exposing them to diluted equity financing.”

Strategic Benefits of Modified Farmouts and Seismic Accords

• Accelerating drilling schedules: NAH has accelerated the schedule for drilling the first two test wells at Mancota, as defined herein, to move forward to the fourth quarter of 2022, and plans to drill the third test well in the first half of 2023. i promise. If any of these three initial test wells are commercially productive, NAH has committed to expeditious drilling of development wells in the associated acquired farm-out blocks. Management anticipates that this could coincide with the possible timing of his new NAH treatment facility.
• Own earthquake receipt: Under a modified farmout, NAH will provide HEVI with two unique seismic lines consisting of 35 km of data for the Mancota region. It was previously used by NAH to target drilling sites, three of which are now producing helium. Mancota is located in the first of three predefined land blocks in Saskatchewan, as outlined in the original Farmout. NAH will select locations for her fourth and her fifth test wells in each of the other two blocks by June 30, 2023, and plan to complete both wells by June 30, 2024. We plan to spud by the first quarter.
• Excavation expands due to seismic agreement: NAH and HEVI are two seismic option areas (“Seismic option area”) and one seismic review area (“Seismic review options area”) in Mancota. The details of the earthquake resistance agreement are as follows.
  • Seismic Option Area: Pursuant to the Seismic Option Agreement, NAH will bear 100% of the cost in both seismic option areas to film new earthquakes, data from which will be provided to HEVI and the right to drill option wells at NAH (“option wells”) Earns an 80% operating interest in the option well drilled section and nine adjacent land sections in each of the two seismic option areas prior to August 31, 2023. After drilling each option well, NAH will retain 80% of the operating rights and HEVI will retain the 20% of the land. If NAH does not spud option wells by August 31, 2023, its ability to earn operating interest will terminate.
  • Seismic review options area: Pursuant to the Seismic Option Review Agreement, NAH will have access to 30 days of HEVI’s own seismic data covering the identified Seismic Review Option Area, along with data from HEVI’s 06-02-06-06W3M. Following this review, NAH established a seismic review options area (“Seismic review option well”) By the end of Q2 2023, we will either remove the option entirely or capture new seismic data in the seismic review options area. If the latter option is chosen, NAH will provide the data to HEVI, with the option to spud a seismic review option well before October 31, 2023, on the same terms as Option Wells above.

Performing this modified firmout will give HEVI many strategic advantages. NAH is committed to drilling his two wells in the fourth quarter of 2022 and his third well in the first half of 2023, allowing HEVI to accelerate cash flow generation Offers shareholders a short-term drilling catalyst investment. In addition, HEVI will receive proprietary seismic surveys that NAH used to successfully produce three of his new helium wells, providing HEVI with greater insight and valuable data that can be used to identify future targets. To do. Finally, the conclusion of the Seismic Agreement will allow HEVI to utilize a wider seismic coverage of the land without associated costs, and in the Seismic Options Area and Seismic Review Options Area he will have the opportunity to participate in wells drilled by NAH. Provided. All of these enhancements are expected to drive meaningful value creation and enhance HEVI’s long-term prospects.

About Helium Evolution Inc.

Helium Evolution is a Canadian-based helium exploration and production company focused on developing assets in southern Saskatchewan and holds the largest helium landholding in North America among publicly traded companies. The company owns more than five million acres of land under permits near proven discoveries of economic helium concentrations and supports expansion of exploration and development efforts across its land base. . HEVI’s management and board will execute a differentiated strategy to become a leading supplier of sustainably produced helium to the growing global helium market, creating attractive opportunities for investors. It offers.

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forward-looking statements

This news release contains statements that constitute “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties and other factors and actual results, performance or achievements, or developments in the industry may differ from such forward-looking statements. Expected results, performance or achievements expressed or implied by forward-looking statements may differ materially. Forward-looking statements are not historical facts and are usually, but not always, “expects,” “plans,” “anticipates,” “believes,” “intends,” , is a description identified by words such as “predict”. “Potential” and similar expressions or that an event or condition “occurs”, “would”, “could”, “could” or “should occur”.

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