Helium Evolution Incorporated · TSXV:HEVI
Helium Evolution — Investor Presentation (July 2023)
32 slides from Helium Evolution's investor presentation, July 2023
Slide 1: Developing Canada’s Helium Resources: Corporate Presentation
Developing Canada’s Helium Resources Corporate Presentation July 2023 TSXV : HEVI
Slide 2: Reader Notice: Forward-looking Statements
Reader Notice Forward-looking Statements Certain statements contained in this corporate presentation may constitute forward-looking information and statements, including "future-oriented financial information" and "financial outlook", under applicable securities laws. All statements in this corporat
Slide 3: About Helium Evolution (TSXV:HEVI)
About Helium Evolution (TSXV:HEVI) A Canadian helium exploration & production company focused on developing assets in southern Saskatchewan, holding ~5.6 million acres of helium land rights: largest position among publicly-traded companies in North America Robust Prospect Portfolio Strategic Investo
Slide 4: Growth Trajectory
Growth Trajectory Helium Evolution is executing on a strategically defined path to value creation. CLOSED $12.3MM COMMENCED CLOSED $6.9MM 4 EXPLORATION LEVERAGE NAH FINANCING TRADING ON TSXV FINANCING INITIAL DRILLS WELLS FARMOUT RESULTS Sets the stage for Public listing under Secured strategic 5 we
Slide 5: Unique Competitive Advantage: NAH Farm-in & Strategic Investment
Unique Competitive Advantage: NAH Farm-in & Strategic Investment Affords HEVI Positive Working Capital • Five well farm-in agreement with NAH (Jun/22) and amended (Oct/22) with new seismic option and seismic review option agreements1 for two additional potential wells • $3.5MM equity investment by N
Slide 6: Exploration Premise on ~5.6MM Acres
Exploration Premise on ~5.6MM Acres Land Acquisition Sawatsky Anomalies • Crown land abundant & • Posted as many Sawatsky anomalies low cost as possible on crown lands and • 3-year term manageable to evaluate with geology and geophysics evaluate prospects Government Mapping Anomalies • Highly correl
Slide 7: HEVI’s Saskatchewan Advantage
HEVI’s Saskatchewan Advantage • ESG-friendly: green source of helium as harmless nitrogen gas is carrier • Stable, safe & environmentally responsible vs other global jurisdictions • Proximity to high-demand U.S. markets and existing infrastructure • Identical drilling process to natural gas & access
Slide 8: HEVI Land Holdings
HEVI Land Holdings HEVI is the largest publicly-traded helium land holder in North America • ~5.6 million acres of land permitted for helium • Land offsets significant helium discoveries by North American Helium • 185+ potential helium anomaly leads captured on current land holdings North American H
Slide 9: Target Formation
Target Formation HEVI’s Primary Geological Target: The Deadwood Formation Regional Data Used Targeting Basement Highs Well logs, seismic, and aeromagnetic data on the Highest concentrations of helium typically found Deadwood used to select drill targets. near regional basement (Precambrian) highs, c
Slide 10: Cambrian Stratigraphy
Cambrian Stratigraphy Two known Helium producing zones in the Cambrian (highlighted below) • M Cambrian basal sands which tend to be thick in basement lows and thin or absent on highs • U Cambrian Earlie (below the Pika mkr) and Deadwood sands (above the Pika mkr) which exist immediately above the b
Slide 11: HEVI Land is Adjacent to NAH Discoveries
HEVI Land is Adjacent to NAH Discoveries • NAH has discovered two helium pools adjacent to HEVI lands at Mankota and Cadillac • North American Helium has drilled 12 wells2 within Block 1 of the Farmout Area • The nearby Mankota Pool has demonstrated a nitrogen-rich reserve with helium concentrations
Slide 12: Amended Farmout with NAH (Oct/22)
Amended Farmout with NAH (Oct/22) HEVI Land • Map reflects the 3 predetermined blocks of North American Helium Land HEVI land on which NAH has the right to drill 5 exploration wells • NAH funds 100% of drilling costs for each exploration well drilled, earns 80% interest in that well’s section + nine
Slide 13: NAH Seismic Option Agreements (Oct/22)
NAH Seismic Option Agreements (Oct/22) Seismic option and seismic review option agreements with NAH expand potential wells NAH seismic provided to HEVI as part to be drilled of Seismic Option Jointly held with NAH as a result of farmout HEVI land North American Helium land • Two seismic option wells
Slide 14: Farmout Progress & Upcoming Catalysts
Farmout Progress & Upcoming Catalysts NAH Confirmed Drills to be Spud: • Jul 25/23 spud confirmed: Test Well #5 at Gravelbourg (12-13) • On or before Mar 31/24: Test well #4 at Fox (11-13) • On or before Aug 31/23: Two seismic agreement test wells Test Well Area #1 (5-36) at Mankota Test Well Area #
Slide 15: HEVI Milestones & Catalysts: 2023 & Mid-2024
HEVI Milestones & Catalysts: 2023 & Mid-2024 2022 2023 2024 Q4 Q1 Q2 Q3 Q4 Q1 Q2 BLOCK 1 – MANKOTA Test Well #3 • Test well #1 (12-30-002-08W3) (12-11-05-10W3) • Test well #2 (01-01-006-10W3) drilled & abandoned NAH selected drill NAH Spud BLOCK 2 – GRAVELBOURG location for Test Well #5 Test Well #5
Slide 16: Base Economic Assumptions
Base Economic Assumptions $450/mcf 4,000 mcf/d $2.35M $1.5M USD Commodity Price Raw gas production Drilling costs DC&T Facilities $1.5M per 1,000 mcf/d raw 1% 4.25% 10year Helium Concentration Crown Royalty Well life TSXV : HEVI | 16
Slide 17: Single Well Economics - Sensitivities
Single Well Economics* - Sensitivities Helium price (US$/mcf) $ 300 $ 350 $ 400 $ 450 $ 600 $ 750 $ 900 Helium price (C$/mcf) $ 390 $ 460 $ 520 $ 590 $ 780 $ 980 $ 1,170 IRR (%) 37% 49% 59% 70% 101% 132% 162% Payout period (years) 2.3 1.8 1.6 1.3 1.0 0.7 0.6 NPV ($MM) Undiscounted 23.4 31.3 38.2 46.
Slide 18: Successful Farmout Well Price Sensitivity
Successful Farmout Well Price Sensitivity* One successful exploration well + three development wells Development well COS – 66% Helium price (US$/mcf) $ 300 $ 350 $ 400 $ 450 $ 600 $ 750 $ 900 Helium price (C$/mcf) $ 390 $ 460 $ 520 $ 590 $ 780 $ 980 $ 1,170 IRR (%) 83% 116% 143% 175% 260% 350% 435%
Slide 19: Corporate Forecast: 500 mcf/d He Production
Corporate Forecast* 500 mcf/d He Production Helium Price (US$/mcf) $350 $450 $650 Exchange Rate 1.3 1.3 1.3 Helium Price (C$/mcf) $460 $590 $850 Helium Sales (mcf/d) 500 500 500 Annualized Sales (mcf) 182,500 182,500 182,500 Revenue ($) 83,950,000 107,675,000 155,125,000 Royalties ($) 7.25%** (6,086
Slide 20: An Experienced Team
An Experienced Team Extensive resource development expertise with a history of success in Saskatchewan Greg Robb John Kanderka President, Chief Executive Officer, and Director VP, Land & Corporate Development Over 35 years of experience across all facets of Western Canadian energy resource activity
Slide 21: HEVI Next Steps
HEVI Next Steps ANALYZE SEISMIC HEVI has amassed approximately 2,000 km of seismic, which is key to selecting drilling locations on a “wildcat” exploration play APPLICATION OF LEARNINGS Leverage valuable knowledge gained through 2022 exploration program TARGET SELECTION Identification of 10-12 prosp
Slide 22: Developing Canada’s Helium Resources
Developing Canada’s Helium Resources Corporate Presentation July 2023 Contact HEVIinfo@5qir.com TSXV : HEVI
Slide 23: Appendix
HELIUM EVOLUTION Appendix &3 CORPORATE PRESENTATION | TSXv: HEV
Slide 24: Capital Structure
Capital Structure HEVI Share Capitalization @ July 27/23 Total Basic Shares Outstanding 96.0MM Basic Market Cap (@ $0.16/share) (July 27/23) C$15.4M Private placement financing in June, 2022 raised aggregate gross proceeds of $6.9 million Total Options & Warrants Outstanding 20.4MM • Strategic equit
Slide 25: What is Helium (He)?
What is Helium (He)? • 2nd most abundant element in the universe (after hydrogen) and the most stable • Inert gas to -269 C • Non-renewable: recoverable quantities only in a few locations globally • High thermal conductivity helps control silicon temperatures during chip manufacturing & semiconducto
Slide 26: How is Helium Formed & Extracted?
How is Helium Formed & Extracted? Most helium is formed from the radioactive “Since the transfer of drilling knowledge from the O&G decay of Uranium and Thorium2 industry should be seamless, we do not envision undue risks as it pertains to drilling vertical Helium wells,“ - Beacon Securities3 Helium
Slide 27: What is Helium Used For?
What is Helium Used For? Tech, Tech & Tech • Known as safe, non-flammable gas to fill balloons • Cooling properties: boiling point near absolute zero There are no substitutes for Helium, and it cannot be synthesized MEDICAL & RESEARCH AEROSPACE & DEFENSE INDUSTRIAL Space Exploration – Defense Guidan
Slide 28: A Growing Need for Helium
A Growing Need for Helium • Technology industry demand for helium has been increasing1,2 KEY DRIVERS1 • The helium market is expected to grow 11.2% (CAGR) over 2021 – 20263 ✓Medicine • Annual helium demand reached 6.5Bcf in 20214 ✓Aerospace • Several countries, including Canada, have now classified
Slide 29: Recent Headlines
Recent Headlines “ “ “ Large supply of Helium will be Helium Instrumental required for President Biden's Unprecedented Helium Helium: The Most Important plan to boostinsemiconductor Semiconductor Shortage Could Send Resource No One is Talking Manufacturing chip manufacturing in the U.S. Prices Sky-H
Slide 30: The New Market Landscape
The New Market Landscape • U.S. Strategic Reserve (BLM) now depleted, free market pricing now in effect • North American supply has significantly weakened with the elimination of the U.S. strategic reserve • As the helium market continues to evolve, greater transparency into market pricing for heliu
Slide 31: McCord Prospect Earlie Structure
McCord Prospect 2 Earlie Structure TSXV : HEVI | 31
Slide 32: McCord Prospect Line MCD
McCord Prospect 2 Line 22 MCD 113 TSXV : HEVI | 32