Slide 1: Developing Canada’s Helium Resources – Corporate Presentation
Developing Canada’s Helium Resources Corporate Presentation August 2024 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 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 Numerous Near-Term Strategic Investor Supports Robust Pr
Slide 4: Helium (He) – a Critical Mineral
Helium (He) – a Critical Mineral Declared a critical mineral by many countries, including Canada, in 2021 Regional Data Used Targeting Basement Highs The Deadwood Formation Conventional Vertical Drilling Nitrogen Carrier Gas >0.3% He Content Considered Economic Up to: PROVEN Helium produced in HELIU
Slide 5: Capital Structure & Leadership
Capital Structure & Leadership HEVI Share Capitalization @ Aug 14, 2024 Management Board of Directors Total Basic Shares Outstanding 96,033,974 Greg Robb* James P. Baker* President, CEO & Director Chair & Independent Director Options (avg. exercise price $0.30/share) 9,575,718 Patrick Mills*, P. Eng
Slide 6: HEVI Land Holdings Target Area
HEVI Land Holdings 275 miles North American Helium 130 miles Royal Helium Global Helium TARGET AREA TSXV : HEVI | 6
Slide 7: Mankota
Mankota • HEVI lands are adjacent to NAH’s producing Mankota pool • NAH has drilled 16 wells1 in the Mankota area since 2021 • HEVI recently acquired an additional four sections of 100% land (“4 Crown Sections”) that was previously unleased and is adjacent to existing HEVI and NAH development in the
Slide 8: 2-31 Helium Discovery
2-31 Helium Discovery INITIAL RESULTS • First helium discovery at 2-31 joint well (NAH 80% and HEVI 20%) confirmed in November 2023 • • Initial flow test of 1.3 MMscf/d and 6,000 kPa flowing tubing pressure A 3rd party pressure transient analysis suggested the deliverability could ~4.0 potentially i
Slide 9: 9-35 and 9-18 Wells (NAH 80% & HEVI 20%)
9-35 and 9-18 Wells (NAH 80% & HEVI 20%) ~7.0 9-35 INITIAL RESULTS • Second helium discovery at 9-35 well • Following perforation, well flow tested at 7,000 Mscf/d and 9,000 kPa flowing tubing pressure after a 6-day flow test MMscf/d flow rate 0.64% • Pressure transient analysis revealed no reservoi
Slide 10: Ambitious Development Drilling Program
Ambitious Development Drilling Program Up to 9 joint drills planned for 2H-2024 to 1H-2025 (HEVI 20% WI) HEVI capital commitment1 $3.6 to $5.5 million Location selection by NAH aligns with HEVI’s internal technical work 4 additional locations identified on HEVI 100% owned lands 1 Based on HEVI inter
Slide 11: Path to First Helium Sales
Path to First Helium Sales • Agreement in place between NAH and HEVI allowing HEVI to pay processing fees, based on an industry standard calculation, at NAH facilities without committing upfront capital • Agreement also allows HEVI to take helium in kind or HEVI can participate in NAH’s marketing ar
Slide 12: Gravelbourg / Glenbain
Gravelbourg / Glenbain • HEVI’S internal interpretation suggests that numerous targets on HEVI’s land display similar characteristics to the NAH Cadillac producing pool • 12-13 well drilled in Q3/23 • Cased for further evaluation • Generating Internal Targets: • Seismic interpretation underway which
Slide 13: Gravelbourg / Glenbain - Middle Deadwood
Gravelbourg / Glenbain - Middle Deadwood NAH 16-27-9-11W3 NAH/HEVI 12-13-10-8W3 • Stratigraphic X-section • Thick middle deadwood Gas Pay with pay zone 40+m Zone • Radioactive zone helium source rock Radioactive Zone PreCambrian TSXV : HEVI
Slide 14: Fox/Hatton
Fox/Hatton • 11-13 well drilled in Q3/23 • True wildcat well; first well drilled in the area in ~70 years • Thick Basal sandstone of Basal 58 meters Sandstone • Intermediate cased for potential reentry • Potential drillable locations identified PreCambrian HEVI Land North American Helium Land Joint
Slide 15: Fox/Success
Fox/Success • Area is becoming increasingly more prospective given recent wells drilled on neighbouring land • High Helium content of up to 2% • Numerous potential targets based on historical Sawatsky anomalies HEVI Land NAH wells drilled for Helium New Helium well licenses Sawatsky anomalies (heliu
Slide 16: Economic Assumptions
Economic Assumptions $600/mcf 4,000 mcf/d $2.0MM $1.55MM USD commodity price Raw gas production Drilling costs Completion, equip & tie-in 0.95% 4.25% 10year Helium concentration Crown royalty Well life TSXV : HEVI | 16
Slide 17: Development Plan Economics
Development Plan Economics* Inclusive of the three recent Helium discovery wells Low Mid High Wells drilled (gross) 9 12 16 Successful wells (gross) 6 8 10 Successful wells (net) 1.2 1.6 3.6 Net capital ($MM) 5.1 6.9 34.0 Helium sales (mcf/d) 41 55 123 Cash flow from operations ($MM/year) 8.7 11.7 2
Slide 18: Near-term Growth Trajectory
Near-term Growth Trajectory Helium Evolution is executing on a strategically defined path to value creation. FIRST HELIUM 9-35 WELL EXPANDS STIMULATION OF OFFSET DRILLING/ GOAL OF DRILLED 11 WELLS DISCOVERY AT MANKOTA 9-18 WELL AT ADVANCING FACILITY COMMERCIAL 7 cased and 4 D&A MANKOTA DISCOVERY MAN
Slide 19: Appendix
HELIUM EVOLUTION Appendix &3 CORPORATE PRESENTATION | TSxV: HEVI
Slide 20: A Growing Need for Helium
A Growing Need for Helium There are no substitutes for Helium, and it cannot be synthesized Helium Global Demand by Market Demand Forecast by Segment1 Segment (2023)1 20211 1 U.S.G.S, company reports and Peters & Co. Limited TSXV : HEVI | 20
Slide 21: The New Market Landscape
The New Market Landscape • Continental North American supply of helium has significantly weakened with the sale of the U.S. strategic reserve • Geopolitical issues – Russia, Middle East sources • As the helium market continues to evolve, greater transparency into market pricing for helium is expecte
Slide 22: 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 23: Earlie Sandstone Structural Play
Earlie Sandstone Structural Play TSXV : HEVI
Slide 24: An Experienced Team
An Experienced Team Extensive resource development expertise with a history of success in Saskatchewan Greg Robb, Co-Founder John Kanderka, Co-Founder President, Chief Executive Officer, and Director VP, Land & Corporate Development MANAGEMENT Geologist with over 35 years of experience across all fa
Slide 25: Developing Canada’s Helium Resources – Contact
Developing Canada’s Helium Resources Corporate Presentation August 2024 Contact HEVIinfo@5qir.com TSXV : HEVI