Mr. Andrew Davidson reports

ROYAL HELIUM AWARDS INSTALLATION CONTRACTS FOR STEVEVILLE HELIUM PROCESSING FACILITY

Royal Helium Ltd. has awarded the remaining site installation contracts for the Steveville helium processing facility. Vise Energy Services of Lacombe, Alta., has been selected as the lead mechanical contractor with Medallion Energy Services of Grande Prairie, Alta., as lead electrical and instrumentation contractor.

Royal has already contracted Broersen Construction of Brooks, Alta., and DFI Piling of Edmonton, Alta., for the lease construction and civil works, which is nearing completion, and ready for the delivery of the five main process skids and six minor skids by Rangeland Trucking and Cranes of Airdrie, Alta.

Also well under way, Campus Energy Partners of Calgary, Alta., have been contracted to provide engineering, procurement, construction and management for the mid-stream pipeline services. To date, the 12-12 well to facility pipeline (South pipeline) has been completed and the 10-22 well to facility pipeline (North pipeline) has been tested and nears completion.

John Styles, Royal's lead engineer, comments: "The Steveville facility fabrication and construction project is on track to be completed and on stream in Q3 of this year. We, along with Obsidian Engineering, are very pleased with the co-ordinated effort and quality of the preparation and construction work at site which will be ongoing through July to be followed by Arjae and contractors Vise and Medallion to commission and start up the plant."

Steveville helium processing plant

The Steveville plant is designed to process 15 million cubic feet/day of raw gas fed by the two 100-per-cent-owned helium wells at Steveville, Alta., and produce 22,000 cubic feet of 99.999 per cent helium per year. The engineered life of the plant is 25 years while both wells are expected to remain on stream for a minimum of nine years. The plant will also produce enough fuel gas to power the plant and up to 22 million pounds of commercial carbon dioxide, which provides for a potentially significant secondary cash flow stream to Royal.

About Royal Helium Ltd.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium and associated gases. The company controls over one million acres of prospective helium permits and leases across Southern Saskatchewan and southeastern Alberta. Given the current and foreseeable global undersupplied nature of this critical and non-renewable product, Royal is well positioned to be a leading North American producer of this increasingly high value commodity.

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