Mr. Greg Robb reports

HELIUM EVOLUTION CONFIRMS FIRST HELIUM DISCOVERY

Helium Evolution Inc. has confirmed its first joint helium discovery with partner North American Helium Inc. (NAH) following completion of the Deadwood zone and initial testing of the joint well drilled at 2-31-2-8W3 (joint well No. 1), as announced on Sept. 25, 2023.

Joint well No. 1 underwent a series of tests to confirm flow rates, reservoir boundaries and gas composition, all of which represent important data points to help inform future development plans in the area. Joint well No. 1 had helium concentrations of 0.95 per cent, more than three times the 0.3-per-cent level deemed commercially viable, and 96 per cent nitrogen, with the balance comprising fractional percentages of minor component gases. This gas composition is consistent with NAH's producing helium pool 15 kilometres to the north, supporting Helium Evolution's belief that the area offers meaningful potential for commercial helium development.

"We are very excited by our first helium discovery and 0.95 per cent helium concentration at joint well No. 1, which confirms the potential of the Deadwood formation as a significant source of helium in the region and represents an important step along HEVI's journey to achieving scalable helium production from the lands we originally acquired in 2021," said Greg Robb, president and chief executive officer of HEVI. "We are in discussions with NAH, as our partner and the operator, regarding the next steps for joint well No. 1, along with future exploration and development plans in the area. We look forward to sharing HEVI's ongoing progress and appreciate the continued support of our shareholders and all stakeholders."

Flow test details

Joint well No. 1 demonstrated rates and pressures that remained steady throughout the entire flow test period, indicating a stable and productive reservoir, and the well flow tested at 1.3 million standard cubic feet per day (MMscf/d) and 6,000 kilopascals (kPa) flowing tubing pressure. A postflow pressure transient analysis evaluated by a third party was positive, suggesting the deliverability of joint well No. 1 could potentially increase by four to six times with stimulation. Further, negligible water (0.6 cubic metre) was produced by the well during the test period, which is favourable for helium recovery and processing.

About Helium Evolution Inc.

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. Helium Evolution's management and board are executing a differentiated strategy to become a leading supplier of sustainably produced helium for the growing global helium market.

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