Helium Evolution Confirms Positive 9-35 Well Results

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to provide an update on our helium discovery following the completion of the Deadwood zone and initial testing of the joint well drilled at 9-35-3-9W3 (" 9-35 Well ").

On February 26, 2024 , the Company outlined that the 9-35 Well flow tested at approximately 7 million standard cubic feet per day (" MMscf/d ") and 9,000 kiloPascals flowing tubing pressure during the six-day extended flow period. The gas composition of the 9-35 Well is 0.64% helium and 96.7% nitrogen, with the balance comprised of fractional percentages of minor component gases. Helium concentrations over 0.3% are deemed commercially viable.

Since HEVI's initial announcement, a post-flow pressure transient analysis (" PTA ") conducted by Petro Management Group Ltd. has revealed positive insights. A composite reservoir model was used to determine pressure response, flow rates, reservoir properties and potential pool boundaries, all of which represent important data points to help inform future development plans in the area. The PTA indicated no reservoir pressure depletion or reservoir boundaries, highlighting a potentially expansive and productive reservoir. The PTA also calculated an absolute open flow potential of 13.3 MMscf/d. Additionally, the absence of water during the test period is a favorable factor for helium recovery and processing.

We are very encouraged by these results, which confirm the potential of the Deadwood formation as a significant source of helium in the region. As outlined in the Company's news release on April 2, 2024 , HEVI and North American Helium Inc. (" NAH ") are strategically planning to embark on an ambitious drilling program, with up to nine joint development wells (the " New Wells ") that are expected to build upon three existing helium discoveries, including the 9-35 Well, in the Mankota area of Saskatchewan. The Company anticipates the New Wells will spud between Q3 2024 and Q2 2025, subject to surface and environmental restrictions, positioning HEVI to capitalize on this strategic expansion given our 20% working interest in the New Wells.

In addition to the New Wells:

HEVI is finalizing potential drilling locations on four sections of recently acquired land, in which the Company holds a 100% working interest (" 4 Crown Sections "). The 4 Crown Sections are strategically located in a central portion of the Mankota helium fairway; and
HEVI anticipates that the 9-18-3-8W3 well (" 9-18 Well ") stimulation will take place in the second quarter of 2024, subject to surface conditions, with similar stimulation having improved the performance of the Company's well located at 2-31-2-8W3.

As always, HEVI is committed to updating the market on significant events and developments as information becomes available.

Stay Connected to Helium Evolution

Shareholders and other parties interested in learning more about the Helium Evolution opportunity are encouraged to visit the Company's website, which includes the Company's current corporate presentation, and are invited to follow the Company on LinkedIn and X for ongoing corporate updates and helium industry information. Helium Evolution also provides an extensive, commissioned ‘deep-dive' research report prepared by a third party whose background includes serving as a research analyst for several bank-owned and independent investment dealers. In addition to recent media articles , HEVI maintains a profile on the Investing News Network platform, where further information, editorial pieces and industry reviews are available.

About Helium Evolution Incorporated

Helium Evolution is a Canadian-based helium exploration company holding the largest helium land rights position in North America among publicly traded companies, focused on developing assets in southern Saskatchewan. The Company has 5.6 million acres of land under permit near proven discoveries of economic helium concentrations which will support scaling the exploration and development efforts across its land base. HEVI's management and board are executing a differentiated strategy to become a leading supplier of sustainably-produced helium for the growing global helium market.

For further information, please contact:

Greg Robb, President & CEO Kristi Kunec, CFO	Phone: 1-587-330-2459 Email: info@heliumevolution.ca Web: https://www.heliumevolution.ca/

Cindy Gray, Investor Relations	info@5qir.com \| 1-403-705-5076

Statement Regarding Forward-Looking Information

This news release contains statements that constitute "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur.

Forward-looking statements in this document include statements regarding the Company's expectations regarding the Company and/or NAH's development and exploration plans, the Company's expectations regarding the Mankota helium fairway, the Company and/or NAH's ability to identify future exploration and drilling targets including the New Wells, increasing shareholder value, the Company's expectations regarding the Deadwood formation as a significant source of helium in the region, potential drilling locations on the 4 Crown Sections, the productivity of the 9-35 Well, the stimulation of the 9-18 Well including the timing and the achievable results, the Company's expectations regarding recoverability of helium, the size and nature of the reservoir, the Company's ability to preserve capital and other statements that are not historical facts. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors and risks include, among others: the Company may be unsuccessful in drilling commercially productive wells; the Company and/or NAH may choose to defer, accelerate or abandon its exploration and development plans including the New Wells and/or the 4 Crown Sections; the Company and/or NAH may choose to not bring the 9-35 Well onto production; the Company and/or NAH may abandon plans to stimulate the 9-18 Well; new laws or regulations and/or unforeseen events could adversely affect the Company's business and results of operations; stock markets have experienced volatility that often has been unrelated to the performance of companies and such volatility may adversely affect the price of the Company's securities regardless of its operating performance; risks generally associated with the exploration for and production of resources; the uncertainty of estimates and projections relating to expenses; constraint in the availability of services; commodity price and exchange rate fluctuations; adverse weather or break-up conditions; and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

When relying on forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and risks, other uncertainties and potential events. The Company has assumed that the material factors referred to in the previous paragraphs will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the 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.

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Helium Evolution Confirms Additional Drilling of Up to 9 New Wells on Joint Land and Provides Operations Update

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to announce a joint initiative with its partner and the operator, North American Helium Inc. (" NAH "), to embark on an ambitious drilling program in the Mankota area of Saskatchewan.

HEVI and NAH are planning to drill up to nine joint development wells (the " New Wells ") which are expected to spud between Q3 2024 and Q2 2025, subject to surface and environmental restrictions. With HEVI's 20% working interest in the New Wells, the Company is positioned to capitalize on this strategic expansion, building upon three existing helium discoveries at Mankota, including the commercially viable 2-31 Well, as defined herein and as outlined in the Company's press release on February 26, 2024 . The Company intends to work with NAH over the coming months to determine specific well locations and timelines.

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Helium Evolution Announces Most Recent Farmout Well Encounters Helium - Completion and Testing Proceeding

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to announce that its partner, North American Helium Inc. (" NAH "), has successfully completed drilling and casing of the farm-out well located at 9-35-3-9W3 (" Test Well Area #1 "). NAH was responsible for 100% of the drilling costs for Test Well Area #1. Going forward, any joint operations involving Test Well Area #1 will be shared by NAH and HEVI at an 80% and 20% ratio, respectively. NAH and HEVI plan to complete, test and evaluate Test Well Area #1 in the coming weeks to verify the presence of helium and assess commerciality of this potential helium discovery, and will keep investors updated on progress.

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Helium Evolution Announces Second Joint Well Encountered Helium; Completion and Testing to Proceed

Helium Evolution Incorporated (TSXV:HEVI) (" HEVI " or the " Company "), a Canadian-based helium exploration company focused on developing assets in southern Saskatchewan, is pleased to announce that its farm-in partner, North American Helium Inc. (" NAH "), has successfully completed drilling and is proceeding with casing of the second joint well at 9-18-3-8W3 (" Joint Well #2 "), on lands near Mankota in Saskatchewan. NAH will complete, test and evaluate the well in the coming weeks to confirm the presence of helium and assess commerciality of the potential helium discovery.

HEVI also confirms that the NAH farm-out well at 9-35-3-9W3 (" Test Well Area #1 ") is scheduled to spud in early January, subject to surface conditions and rig availability. Test Well Area #1 is located on native prairie lands where regulatory requirements only allow drilling access when the ground is frozen, which had previously delayed the spud timing as announced November 21, 2023 .

News Provided by GlobeNewswire via QuoteMedia

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US to Invest Over US$6 Billion in Clean Energy Initiatives

Over the last week, the US government has unveiled significant investments in clean energy and carbon-reduction initiatives that it believes will be pivotal steps toward a more sustainable future.

Two key announcements, spearheaded by the Biden-Harris administration and facilitated by the Department of Energy (DOE), are poised to reshape both the industrial sector and mining communities across the nation.

The first announcement, a commitment of up to US$6 billion, is set to cover 33 projects spanning over 20 states. This investment aims to decarbonize energy-intensive industries, including aluminum, cement, chemicals, iron and steel.

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First Helium CEO Ed Bereznicki: Bringing the Worsley Property into Production in 2022

First Helium (TSXV:HELI) successfully tested its first discovery well and is now looking forward to bringing it into production in 2022. The company is also exploring future helium resources on an underdeveloped land base in Worsley, Alberta.

First Helium CEO Ed Bereznicki shares some of the exciting things that the company is working on.

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A Global Helium Shortage: Why This Investment Opportunity is Heating Up

Helium has countless uses outside of floating party balloons. This rare and finite element is used in MRI machine technology, fibre optics, semiconductors, space exploration and more. Helium is also valuable for scientific research, medical use and in other specialized industries.

Helium is a colorless, odorless, tasteless, inert and non-toxic gas that sits first in the group of noble gases on the periodic table of elements. Since it has so many important uses in the modern world, helium stocks are being reduced at a steady rate and at current rates of consumption the world could see its supply potentially dry up in the not too distant future.

While the United States was once the dominant global supplier of helium, Canada and other countries around the world are emerging as also having large reserves of this noble gas, which could help with the looming helium shortage.

Is there really a helium shortage?

Unlike base and precious metals, which are found in numerous countries around the world, the world’s supply of helium is less well understood and is believed to mainly be located in only a handful of countries, including the United States, Canada, Algeria and Qatar. Helium’s unique chemical properties and inert behavior make it a finite commodity in high demand.

According to Sophia Hayes, a chemist at Washington University in St. Louis, “Helium is the one element out of the entire periodic table that escapes the Earth and goes out into space.” The element does not readily combine with other elements, which means as it reaches the surface of the earth, it can easily escape the planet’s gravitational pull.

As the demand for helium grows, analysts expect the market to reach estimated highs of approximately US$18.18 billion by 2025. However, meeting forecasted demand based on current supply chains may not be possible.

The world’s top locations for helium exploration

Much of the world’s helium resources exist in a handful of jurisdictions, including the United States, Canada, Algeria and Qatar. With only a few countries producing helium, the world’s production can be described with a single word: fragile.

For over 100 years, the US Government managed the global supply of helium. Although 75 percent of all the world’s helium production has traditionally come from three locations in the US, the Federal Helium Reserve operated by the Bureau of Land Management (BLM) in Amarillo, Texas is set to stop production in 2021. As one of the biggest military powerhouses in the world, the withdrawal of the US Government as the key supplier from the helium industry provides a large opportunity for the private sector, as helium is critical for specialized welding, low-temperature research, high-tech manufacturing, missile and rocket development and observation balloons.

According to the BLM, “recognizing this important military use for the second most common element in the universe, the Mineral Leasing Act of 1920 reserved all helium produced on Federal lands to the Federal government.” However, as of September 30, 2021, the BLM will no longer manage the Federal Helium System and excess helium will be transferred to the General Services Administration (GSA) to follow its statutory disposal process. The beginning of this disposal process opens the doors for helium exploration companies and resource-rich jurisdictions to further develop this industry and broaden its reach outside of the US.

Canada: A hotspot for helium exploration and production

In 2021, helium was deemed a critical mineral by the Government of Canada, aligning it with the likes of highly sought-after minerals like copper, uranium, zinc and others. The country now stands as having the fifth-largest helium reserves in the world.

Companies looking to leverage North American helium resources include Imperial Helium (TSX:IHC), a Canadian company focused on acquiring, developing and operating helium properties located in the Western Canadian Sedimentary Basin and Avanti Energy (TSX:AVN), a gas exploration company focused on assets across western Canada and the United States. Both companies have assets in Southern Alberta, a helium-rich region in North America

Another major player in the helium space is First Helium Inc. (TSXV:HELI), a helium-focused Canadian company positioned to become a leading North American producer, that is employing a de-risked, low-cost strategy to achieve near-term cash flow. Its flagship Worsley project strategically sits atop a helium-rich area of the Western Canadian Sedimentary Basin north of Grande Prairie, Alberta.

As an emerging leader in helium exploration and resource development, First Helium expects to bring its helium processing facility on stream by the end of 2022 to create operating cash flow for the company. With the end of the Federal Helium System, a large opportunity exists for companies like First Helium to supply helium via industrial gas aggregators in the US to North America, and potentially globally as an increasingly finite and valuable commodity.

Many areas of Alberta and southern Saskatchewan naturally contain large amounts of helium. As an indication of the growing importance of helium development in Canada, the country’s largest processing facility opened near Battle Creek, Saskatchewan in April of 2021. Commissioned by North American Helium, the C$32 million plant is expected to produce more than 50 Mcf of purified helium for commercial sale.

Takeaway

Helium is a rare and finite resource that is experiencing an increasing level of demand for its applications in the medical, research, aerospace and technology industries. Based on the paradigm shift in the helium supply chain due to the US Government ending the Federal Helium System, many companies in countries like Canada are beginning to capitalize on the substantial investment opportunity that exists to participate in this space and replenish the depleting global stockpiles of this valuable noble gas. As an early mover in the nascent Canadian helium sector, First Helium is well-positioned to establish itself as a leading, emerging helium supplier.

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Helium: What You Need to Know About This Critical Element

The idea of investing in helium may not seem as exciting as investing in cryptocurrencies, for example, but there is more to this noble gas than meets the eye.

The global helium market was valued at an impressive US$1.9 billion in 2019. Additionally, the global market for helium is expected to reach US$2.8 billion by the end of 2026, with a respectable compound annual growth rate of 5.9 percent over that period.

In 2021, helium was declared a critical mineral in Canada along with copper, uranium, zinc and others. As a critical mineral, helium is considered essential to Canada’s economic security, is required for Canada’s transition to a low-carbon economy and is a sustainable source for the country’s partners.

Helium is also a finite resource because it is non-renewable and its presence is rare on earth, despite being the second most abundant element in the universe. The element is generally found deep underground in the same sedimentary basins that have historically produced oil and gas.

Why is helium important?

Helium is a valuable and precious commodity used in a wide range of applications, including in the medical, aerospace, military and technology industries. Specifically, the element is used in MRI machines, fibre optic cables, data centers, semiconductor manufacturing and cooling as well as in cryogenics.

Among all of helium’s applications, the most growth is expected to stem from demand in high-tech areas. Given helium’s unique atomic structure of being lighter than air, the element is also non-substitutable in many instances, which therefore requires significant helium production to meet endless industry demands.

Helium: A looming shortage

Effective September 30, 2021, the US government will completely leave the helium industry in an effort to encourage private sector growth and development. The US will facilitate the disposal of its helium reserves in accordance with the Helium Stewardship Act of 2013 to foster a more sustainable economic model.

The decision is expected to have industry-wide ramifications because the US has been the largest supplier of helium to the world since the 1920s. The US accounts for 75 percent of the world’s helium production. Based on current consumption rates, the world’s known helium reserves are expected to run out between the years 2030 to 2040.

The anticipated shortage has sent shockwaves throughout the industry, sending helium prices to between $300 and $600/Mcf as recently compared to natural gas which trades at approximately $2-3/Mcf. According to Cormark Securities, the current price of helium is forecasted to generate project IRRs for producers of approximately 140 percent.

Canada is now being considered a top contender for helping close the helium supply gap. Canada has the fifth-largest helium resource in the world and the US is the largest consumer of helium.

What does this mean? Canadian helium companies have a significant opportunity to leverage attractive prices as the US government starts its exit and seeks new suppliers.

Key players in the helium industry today

There are multiple key players in the helium industry, including Avanti Energy (TSX:AVN,OTC Pink:ARGYF), Desert Mountain Energy (TSX:DME,OTCQX:DMEHF), First Helium (TSXV:HELI), Global Helium (CSE:HECO,OTC Pink:GBHCF), Imperial Helium (TSXV:IHC), North American Helium, Royal Helium (TSXV:RHC,OTCQB:RHCCF), Helium One Global (LSE:HE1,OTCQB:HLOGF), Blue Star Helium (ASX:BNL,OTC Pink:AZZEF) and Thor Resources.

Among the group, North American Helium is the most active driller in Canada with a focus on helium and nitrogen production. The company also holds the largest contiguous helium land position in the world with rights to over 5 million acres of prospective land in Saskatchewan and Utah. North American Helium has a third-party assessed Risked Prospective Resource estimate of 20.8 Bcf of helium on half of the Saskatchewan land area. The company’s assets in Utah sit in a helium-rich area with strong historical drilling outputs as high as 2.8 percent helium – although North American Helium has yet to drill in Utah.

The most uniquely positioned company for success in the group is First Helium. The company expects to be one of the fastest to produce helium relative to the peer group, due its project-driven nature, access to existing infrastructure and favourable timeline. The company’s flagship Worsley project near Grande Prairie, Alberta has a discovery well with helium content that was tested as high as 1.3 percent. According to an independent engineering contingent resources report by Sproule Associates Limited, the Worsley discovery well is estimated to have a net present value of C$15.2 million at a 10 percent discount rate, or C$0.23 per basic share outstanding.

The company also plans to embark on a three-well drilling program on locations adjacent to the discovery well and identified via 3D seismic to further expand its asset base to increase shareholder value. First Helium has also entered into an option agreement to review land and seismic data to potentially explore and develop over 350,000 hectares of highly prospective land for helium. The company plans to become a leading North American helium producer by leveraging its low-risk, high-yield discovery well, and focusing on a low-cost strategy to achieve strong cash flows.

Regardless of what company fits your investment strategy — the potential helium shortage that may occur in the coming years makes companies like First Helium and North American Helium compelling to consider.

Takeaway

As US government helium production ceases, the industry is set to experience a supply shortage in the near term. New and significant production is needed and Canada is quickly rising to the top as a major potential supplier of helium. Canadian companies with low-risk helium projects present an exciting opportunity for investors seeking to capitalize on high helium prices and increasing demand.

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	Three months ended		Year ended
Tabular amounts in thousands of Canadian Dollars, except share and per share amounts	December 31, 2023	December 31, 2022	December 31, 2023	December 31, 2022
Financial
Net loss	1,719	520	2,953	7,363
Net loss per share, basic and diluted	0.02	0.01	0.03	0.09
Cash	6,330	9,128	6,330	9,128
Working capital	5,743	10,236	5,743	10,236
Total assets	11,639	13,022	11,639	13,022
Total liabilities	872	226	872	226
Weighted average shares outstanding	96,033,974	96,033,974
Basic and diluted ¹	96,033,974	96,033,974	96,033,974	78,397,100

Hole	Sample ID	Core length (cm)	Li ₂ O %	Sn %	WO ₃ %	Comments
U9-38	TRD006031	21	0.47	0.36	0.01	Hornfels of interbedded sandstone and mudstone of the Mathinna Supergroup. Spotted siltstone to fine- grained sandstone. Sample was taken from a vein of coarse brown mica.
U8-1A	TRD006044	91	0.27	0.02	0.58	Interbedded dark grey sandstone with spotted fine grained sandstone to siltstone. Minor light brown and white intervals which may be alteration and/or staining.
AU11-4	TRD006018	92	0.20	0.06	0.01	Variably altered fine-grained white aplite to medium- grained leucogranite. Abundant white feldspar. Grey to transparent quartz and common muscovite. Rare dark micas.
U6-11	TRD006026	99	0.13	0.02	0.01	Medium to fine-grained white sometimes spotted sandstone with minor mica.
U6-11	TRD006030	91	0.12	0.01	1.00	Brown metasandstone-dominated section with light coloured fine-grained metasandstone and grey units.
AU11-4	TRD006019	92	0.10	0.03	0.01	As per sample TRD006018.
U11-7	TRD006032	153	0.09	0.01	0.01	Very sharp contact between dark grey hornfels and white aplite. Aplite is white mica rich with scattered dark veinlets and domains less than 5 mm across.

Greg Robb, President and CEO Kristi Kunec, CFO	Phone: 1-587-330-2459 Email: info@heliumevolution.ca Web: https://www.heliumevolution.ca/
Cindy Gray, Investor Relations	heviinfo@5qir.com \| 1-403-705-5076

Helium Evolution Confirms Positive 9-35 Well Results

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Overview

Company Highlights

Key Project

The Deadwood

Project Highlights:

Management Team

Greg Robb - President and Chief Executive Officer

Patrick Mills - Chief Operating Officer

Kristi Kunec - Chief Financial Officer

John Kanderka - VP, Corporate Development

James P. Baker - Chairman of the Board

Brad Wall - Director

Philip Hughes - Director

Michael Graham - Director

Jeff Barber - Director

Heather Isidoro - Director

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Is there really a helium shortage?

The world’s top locations for helium exploration

Canada: A hotspot for helium exploration and production

Takeaway

Why is helium important?

Helium: A looming shortage

Key players in the helium industry today

Takeaway

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