Blue Star Helium Activities Report Quarter Ended 31 December 2022

Blue Star Helium Limited (ASX: BNL) (Blue Star or the Company) is pleased to provide an update on activities undertaken during the quarter ended 31 December 2022.

• Initial Plan of Development completed for world-class Las Animas Helium Project.
• First helium output and sales targeted for H2 CY2023 from high-grade Voyager discovery.
• Final decision on Galactica/Pegasus plant configuration expected during H1 CY2023.
• Further confirmation of high-concentration helium discovery at JXSN#4 discovery well on the Galactica/Pegasus prospect.
• Four helium wells at Galactica/Pegasus received final COGCC approval.
• Well-funded with quarter end cash balance of A$6.827 million and zero debt.

OPERATIONS

Field development

On 19 December 2022, Blue Star announced the key outcomes of its initial Las Animas Plan of Development, which included a mid-stream solution for its initial facility which is to be located on the high-grade Voyager discovery. The plan involves an initial processing facility at Voyager, supplied and operated by a mid-stream company in return for monthly lease payments from Blue Star. This solution is highly attractive to the Company as it minimises upfront capital commitments while delivering highly attractive returns.

Blue Star initiated contract discussion with its preferred midstream provider during the December quarter and negotiations are ongoing during the current quarter. Confirmation of the Voyager process facility lease agreement with the selected mid-stream operator is expected in Q1 CY2023.

Voyager development plan

An initial three to four development wells are planned at Voyager, the permitting of which is well underway ahead of production guidance. The development plan aims to capitalise on previous exploration drilling success at Voyager by drilling offset wells to the original discovery followed by For personal use only step out wells withing the defined contingent resource.

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