Pulsar Helium (TSXV:PLSR) — Investor Update

0:02 Good afternoon, ladies and gentlemen. Welcome to the PULSAR HELIUM INC. Investor Update. Throughout this recording update, investors will be in listen only mode. Questions are encouraged. They can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Please simply type in your questions at any time and press end. Before we begin, the company would like to play the following video. We've got a major update for a historically high concentrated helium deposit. Helium is one of the sought after elements on the planet. Scientists got the big readings early this morning. The mine is located just outside Babbitt. It could be one of the richest helium reservoirs in the world. Biggest such discovery in North America. Helium is the undervalued and the understated commodity that nobody knows that we rely on. More or less all electronic items rely upon helium. For PULSAR, we go off and we find new occurrences of helium. And so our topaz project in Minnesota that has been drilled and flowed 13.8% helium, it's important for multiple reasons.

1:06 To be able to provide the market with the opportunity to acquire helium that is not linked to the production of hydrocarbons, to give companies the choice to go for that greener supply source. In addition to the big ones, tech, medtech, fiber optics, and aerospace, helium is used in a variety of other areas and industries, including quantum computing, welding and fabrication, technical diving, fusion energy and the associated r and d, renewables leak detection, automotive and airships. So the application and usage of helium is wide ranging. Our top class project here in Minnesota and The USA is incredibly well located, which is crucial as we position ourselves as one of

1:46 the major players in North America in the months and years to come. I'd now like to hand over to Thomas Abraham James. Good afternoon to you, sir. Good afternoon to you as well, Mark, and, thank you very much for having me. And, yeah, what a pleasure. First time on Investor Meet company. So thanks everybody for tuning in. What I'll do first is I'm gonna run through the presentation that we have to give some background on the company. And then afterwards, certainly happy to field questions, of which I'm sure there are a few after our RNS that we put out this morning. So PULSAR, dedicated helium exploration and development company, and we have multiple projects.

2:36 So we have the Topaz project in Minnesota and the Tunu project in Greenland. Today, we'll be focusing on Topaz. That's the more of the advanced of the projects. Both of them primary helium occurrences, and we're the first mover in each location as well. So these are not worked over sort of known occurrences. These are ones that we are going in and developing for the first time. And certainly with Topaz in The USA, with that one, extremely high content of helium, and then, also being in The USA, which is the the world's largest consumer of helium. In terms of who we are, the team, so myself, cofounder, president, CEO, and major shareholders, so quite a few hats to wear there.

3:24 But, really started, with PULSAR back in 2019. And my background, I've been in helium now for about a decade. I was involved in founding a company called Helium One, which is also listed in London. So with me is Neil Herbert. He's our chairman, also very experienced with helium as well and other bespoke commodities. And then we have some nonexecutive directors with us. Noteworthy, John Ferrier, who's the former CEO of Gulf Keystone Petroleum, which is a London listed company.

4:04 This says it all, HELIUM. It's not about party balloons. It really isn't. So that's a small part of the market share. But, really, it's it's all tech focused, the use of helium. So with its semiconductors is a huge one at the moment. So you need helium, liquid helium in order to fabricate semiconductors. For space launch, helium's used. MRI scan has been historically the largest consumer of helium, and then multiple others. So modular helium reactors, fiber optic cables, you name it. So it's very much tech focused and, a lot of, technology to rely on that we're using right now to communicate with one another. You need helium. Now the thing is is that helium supply has been in decline now for the best part of a decade, and that's really a combination of two things. So one is, at the moment, most helium is a byproduct of natural gas production.

5:02 And so with those natural gas reservoirs, mostly in The US, they're getting older in their life. The the output is decreasing, and therefore, the amount of helium that's coming out is decreasing. On On top of that, the US federal government at the Federal Helium Reserve, that was a strategic stockpile of helium. And what's happened there is that helium has then started to be auctioned off. We were seeing for the first time a real market price for helium. But then earlier this year, it's been privatized, and it doesn't have a a great amount of helium left in it. So the the knock on effect of that is the increase in the helium price. And, really, that is what has started this new industry of looking for helium that is not associated with hydrocarbons, so primary helium projects.

5:50 And we're seeing here there's two different prices for two different types of helium. One is helium in a gas form, and then the other one is helium in a helium in a liquid form. Helium in a liquid form fetches a premium with the other companies out there that are listed. We can get some pricing from them. But we're seeing for the unit of measurement is a thousand cubic feet. That for liquid, you're seeing prices in in excess of a thousand dollars. And for for gas helium, you're seeing anywhere from sort of 450 up to $750. To put that into some form of perspective, natural gas for the same unit is roughly around about $5. Our project, Topaz, location, location, location. It really is key location when it comes to helium.

6:36 If we use the analogy of the the helium party balloon, let's say so looks great, but a week later, it's shriveled up and on the floor. Why? Because helium is such a small atomic size. It likes to leak through more or less everything. So you can imagine that if you have it under pressure in a liquid form in its transportation vessel, you need to get it to its destination very quickly before that product starts to leak out. So with our focus on The USA, is that how The US is starting to import products from abroad, mostly from the The Middle East, and that is a significant shipping time. And more often than not, that you're seeing by the time the product's reached its destination, that there has been loss of product. So, therefore, to have something that is within the market and easy to distribute to the end user that is very advantageous and certainly desirable from the consumer's point of view.

7:29 We are in Northern Minnesota.

7:31 We're actually not too far from the Canadian border, and we have just to our West, it's really North America's major iron ore producing area. So this particular part of the world has got about a hundred and fifty years worth of resource extraction history. We're just to the East. And where we are, we have what you'd expect for this part of the world. There's wonderful road networks. There's power nearby, and we're actually very close to Lake Superior as well for shipping. Highly skilled workforce also, and I must admit, an incredibly supportive community as well. So, you know, it's a pleasure to work there, and certainly all that infrastructure is is very helpful for us. So for it, in any production scenario for HELIUM, it's not something that you transport via pipelines.

8:21 It is something that would be going out via a truck. So to get it from this project off to, say, anywhere in the Contiguous United States, you're probably looking at within two days. So great location. What we have achieved so we are quite a young company. So we started working in 2019, we became a listed entity. Was it just a year ago? So we just celebrated our one year anniversary as a listed company on the TSXV in Canada. And, really, just after we listed, what we did is we went off and we drilled what we refer to as the Jetstream appraisal well. So this is actually next to a, the original discovery, and, it's quite a fun story. So it was a few years ago, well, over a decade now,

9:06 but a company was out there exploring for nickel, and they were drilling down for nickel. And then unexpectedly, they hit gas, at a depth of about 670 odd meters. So then that gas came up naturally to surface. They were very concerned that that gas was combustible. And, what they did was they took a number of samples, sent it off to, multiple different laboratories. The results came back and said, well, you can take a, you know, a sort of breath of relief that, the gas is not combustible. But what it did have was extremely high helium content. So then they recorded 10 and a half percent helium. Then there it was at the time. Helium wasn't terribly interesting, but now, we came across this opportunity, and, the geology, for high helium accumulations in this part of the world is ideal.

9:55 And on top of that, you have a an impermeable ceiling unit. So what that means is the helium that's down there in the ground, it doesn't have the ability to leak up its surface. So its surface, it's a it's a blind occurrence. So if it wasn't for that, drill hole that hit it by chance, there's a good, you know, reason to believe that, this would remain undiscovered. So what we did is we went back in in February. We went and drilled, and, we effectively twinned, that original discovery hole using a gas rig and, all of the, testing equipment that you would anticipate, for for a gas, program. So very pleasingly, going out, replicating it. Drilled only about 15 meters away from that original hole. We went down slightly deeper. And what we found is that, yes, indeed, there was a gas there, naturally flowing up to surface.

10:46 And in fact, we were getting helium readings higher than the original discovery. Were We getting them between eight point seven and fourteen and a half percent. And also importantly, that it's not associated with water either, that it was dry gas. And then accompanying is at as well is C 02 with it, which I'll I'll mention in a moment. So a big milestone for the company, replicating that discovery and really derisking it quite

11:10 significantly and now giving us the, I guess, really the the the the confidence to go forward and and really see the full potential of this project. Just to give an idea of what it looks like. So this is the the drill rig in February. The rig that we use is used is a truck mounted rig. And, yes, that's yeah. Access is good, and it was a successful drill program. So now building on the success. So this section that we have here, this is from ambient noise tomography, also known as passive seismic. And what we show here is that, in the the red is the drill trace for the hole that we just drilled. And as I say, we replicated that original discovery. It went down to a similar depth. But what we see in the geophysics and certainly from the data that we store downhole also is that it looks like we've just tagged the top of this system, of this helium bearing system.

12:06 So the the the seismic data here shows in the green area there where you're seeing a seismic velocity decrease, where those seismic waves are slowing down. And so this coincides with where we start to see helium bearing fractures in the rock. So, certainly, our near term intention is to go back and deepen the well to go through the entire profile of this interpreted reservoir to test its full extent and then also to drill a step out well further afield also.

12:37 This data as well, the seismic data that we have, we just finished a two d seismic reading just not long ago. Was it just a, what, a week ago? So we'll have additional seismic data coming in. And this particular technique, the passive seismic, is something that will be ongoing. And what we find is that certainly where we are, it's still open to the North, to the West, and to the South. So we really do firmly believe that this is not an isolated occurrence, but something that's quite significant in size. You know, it goes so far as to say regional. And then the the c o two that's with the gas as well, so there's quite a high c o two content there. The original thought process was to reinject the c o two into the ground, and in The USA, you receive a credit for that. However, it seems to materialize that for the past three years in the c o in The USA, there's been a distinct c o two shortage, and that is for commercial grade c o two, primarily for the food preservation, beverage, and water treatment industries.

13:36 And what we're seeing is that there is now quite a significant

13:39 value in the gas and that domestically in Minnesota, there is a great demand for it as well. So a real opportunity for that to also contribute to project economics. And here we are. We've made the news quite a lot. So it's as the first mover in Minnesota with this new occurrence, we've had a lot of fantastic media coverage. We've made the the local press in Minnesota, statewide press there as well. And then also we made the national news with the the the likes of CBS and Fox. So it's a really wonderful support there and a very good, yeah, sort of messaging for our company and getting it out there to a much wider audience. Those are our contact details, but I will leave that part of today's presentation and, and then leave it for, some, questions and discussion.

14:32 That's great, Tom. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated on the right hand corner of your screen. So I'll take a couple of moments to review your questions submitted already. I'd just like to remind you, recording this presentation along with a copy of the slides and the published Q and A can be accessed via your Investor Meet company dashboard. Tom, we received a number of questions from investors today. So firstly, thank you to everybody for your engagement this afternoon. Maybe, Tom, I can start off with the first one if I read it as follows. Given today's published evaluation of the Jetstream one appraisal well at the Topaz project in Minnesota, how significant are the key takeaways, I. E, the recoverable helium and CO2 volumes, considering only 13% of your current land position has been evaluated? Yeah. Great question, and and it really is significant.

15:19 So with our current leased license position that we have, it's yeah. The the the data that we've collected and the the one well that's being drilled. So we've only looked at a fraction of our overall license position. Also, on top of that, we are looking to to build on our license position. So in fact, earlier this year in May, the state of Minnesota just put into force its new legislation

15:46 around helium exploration and development, something that didn't exist in the past. So now the the state leases are now available for for leasing as well. So another opportunity to increase our footprint there. So, really, I I I'm I'm very, very content with what we've received to date because I guess we have to put it in perspective is that we've we've only been really working away at this in earnest for a year. We've got contingent perspective resource, and we've looked at just a fraction of the license area. So tip of the iceberg stuff there, Mark. Thanks, Tom. And that turns nicely, I guess, into the the next question. If the geology is consistent across the remaining 87% of the Topaz project, can the jet stream Jet Stream one results be replicated? And at what intervals across the overall land position, I. E, I guess, how many wells could PULSAR drill and what would be the total recoverable volume?

16:38 Oh, okay. Well, with this, we we certainly can I think it goes back to that seismic data that we have that really gives a great deal of confidence that this is laterally continuous?

16:50 On top of that, we are also aware that there have been some other mineral exploration wells that are being drilled that intersected gas, but we never analyzed for helium, but were found to be noncombustible. So that that also gives further faith. And then we know that all the way a 160 kilometers off to the south, the only other well that's ever been analyzed for for helium in the state of Minnesota, that came back with 2% helium. So we think we're very much looking at a a regional play here. In terms of the the the step out program with the the drilling and increasing the resource base, you know, a very straightforward opportunity for us is just simply to deepen this first well, which we can reenter and go through the entirety of what that seismic data is telling us, which is about another 500 meters depth.

17:38 So that could be quite substantial in itself and and have a and, you know, reflect on the resource and then drilling the step out. And then really just to incrementally increase that, so to increase our coverage of the seismic data, to then to to to tread from the known into the unknown with our step out wells. And, and then certainly, you know, we we it's it's it's a it's a very broad area. So, I think that so much is saying, you know, how big could this resource be, not something that I could really speculate on, with a definitive number, but, we have enough, confidence in the company to suggest that, you know, from just touching the top of this reservoir with one well and to get what we already have, it's not gonna take very much work to potentially increase that significantly.

18:26 Great. Thank you. And, of course, you're you're close now to deepening at Jetstream one. So so I guess what can what can we expect? Yeah. With that one, so we're we're looking to do that in a few months' time. So, obviously, we've mentioned that the the intent to drill list on the the London name exchange. So we're looking to not long after that to then go out and to to deepen the well and drill the step out. So with that one, we're actually we are really it's reentering the existing well and then pushing it down. So the anticipation is that that will not take very long to complete. By that, I mean, a matter of just, you know, probably less than a fortnight. And then with that, we'll be getting real time data back as well from, any gas that's encountered. And then shortly after that, then we'll be looking at the flow rates, pressure tests, and so on. So it's gonna be quite thick and fast as far as news flow goes.

19:20 Great. Thanks. You just referenced there about your intentions to list on the London Stock Exchange on AIM. Just really why. Why? Well, it's because we consider it to be really I think that London's AIM Exchange has evolved to be the the premier jurisdiction for industrial gas companies. We see that there are other helium companies there as well, and they're getting good supports there. And, really, it's it's it's something that's, you know, flourishing. So for that reason and then also, I guess, there's no secret that with our company as well, the majority of the people behind this company, we are British. So it's certainly a jurisdiction that we're very familiar with and to have very good experience.

20:06 So and then on top of all that, there's been great demand for us. So, obviously, with our our listing over in Canada, but to to dual list and give our network and the the public in The UK the ability to participate and and join PULSAR, there's sufficient demand for that. That's a for us, it was a very easy decision to make. And then on top of that, with our newly appointed broker, Oak Securities, they're already putting in a commitment of 1,100,000. I mean, it's just fantastic support that's you know? So for us, it was an easy decision to make. Great. Got it. Thank you. Let's just turn to another question we've got here. Sprawl has identified that the Topaz project in Minnesota can be commercialized in a very timely manner.

20:56 This seems positive given Sprawl is an independent third party estimator. How likely is this observation to evolve from timely to rapidly given PULSAR's upcoming drill program? Yeah. Look. It was it's wonderful to get that support from SPRAWL. Certainly, they are one of the the world's top resource independent resource estimators. So to to have that language from them is extremely pleasing. So, you know, in terms of the the time frames, you know, what we're looking at here is something which is a high grade helium occurrence. So that's advantageous in many ways, but one of which is that the, you know, the overall gas in place that needs to be discovered to support commercial operation is is less than, say, if we're looking at 1% or less helium, which many other primary helium plays are.

21:47 So so that certainly works in our favor. But, yeah, we're we're going to we've just about to embark on the first economic assessment done by a third party group. So So we hope to have that completed in the next couple of months, and that will then be going through the, you know, the likely development scenarios, what it would look like around any production scenarios. And we think that with the program that we have coming up, deepening Jetstream, drilling the step out well, that could, you know, put us potentially in a very good position to, you know, realize it sooner rather than later. So, look, I think that there's a lot of factors here being in The USA, having all the infrastructure present, having the market right there. I I really think that we have no excuse not to accelerate this as best we can.

22:36 Great. Thank you. Just by, I guess, by way of comparison, how does PULSAR's published results compare to other primary helium companies in a similar phase of development? Well, look. There there are a few other primary helium players out there now in different jurisdictions around the world. I think just as as a broad comment that there's there's not that many that are working in brand new jurisdictions. Quite a few are working over, I guess, reservoirs that have been extracted in the past, mostly for the the hydrocarbons. But now, obviously, with the the helium license there, they're now being explored for for helium. But I I guess there there's advantages and disadvantages. So for that, the the advantage would be that the reservoirs they're going into, they've got a a large amount of existing data.

23:28 So that could be seismic, could be drilling, and so on that they they could have inherited from the previous workers there. But then again, with a lot of these systems, they are relatively low concentration helium. And having already produced, you know, that may have an impact on future production. Whereas for us, we're off in two new brand new locations where we have, you know, effectively all all the potential in the world with a wonderful head start, particularly with Topaz, with that that high concentration helium naturally flowing to surface as well. But one thing we don't have because we're the first mover is all of that data that a lot of other companies are able to inherit from the first day. So for us, we're going into brand new areas.

24:14 And, you know, so we we weren't able to to go out and say, yeah. I guess it comes back to that comment in the news release saying that we've explored 13% of our area. We can say that's all work that we've conducted ourselves. The rest, the other 87% is all our blue sky, and we have to go off and do the work there. But everything's pointing out that it's looking really good. So I guess that's a major difference. So for us, what you'll see is that as we go forward, we can incrementally build on what we've already accomplished and to certainly strive to to keep on adding to what we have. Whereas perhaps with some of the other jurisdictions, they're they're more or less finite and known what their potential may be, whereas it's more open ended. Thank you. Just returning to the question around your your listing on AIM from James who says, I've seen in the news that PULSAR plans to list on AIM by October. Presuming this is listing is to take advantage of the excitement that far poorer projects listed in London are getting. And he asks really what you think this would do to the stock price perhaps on other exchanges.

25:16 Well, look look, I've got a soft spot for for some other companies out there. I think that everybody's doing a a good job of working hard out there. But, look, for us, it's you know, there there's certainly appetite in The UK for helium companies, so that's an obvious attraction. I think that the The UK market is very well educated in in in helium itself as a commodity. So, look, I I I I won't make any speculation about what that's gonna do to the share price, But I think that, you know, really to to, you know, satisfy that interest and and give yet another option for The UK market. And as I said earlier, there's great demand for it. So but I think that with the the helium shortage that's out there, and it doesn't look like it's going away anytime soon, I think that there's there's plenty of room out there for for, you know, multiple helium players and certainly wish all of them the best of success because I think that, really you know, as I said earlier at the beginning, everyone's reliant on helium even though they didn't know it. So yeah. There we go. That's great. Thanks ever so much, Tom, and thank you to to everybody for your questions this afternoon. Tom, if any more questions do come through, obviously, we'll make those available to you and the team post today's call. I know you're running on to your next meeting also. So look, I know investor feedback will be important to you, and I'll shortly redirect those on the call, I guess, give you their thoughts and expectations.

26:40 But before doing so, Tom, perhaps come back to you for a couple of closing comments. Yeah. Just with the work we've done, I'm extremely pleased with it. I think we've made wonderful progress. To emphasize, it really is just the tip of the iceberg. We now have all the confidence in the world to move forward and execute the next phase. And now that we're we're looking to go across to London as well, certainly, you know, very excited for that one to go through. Grateful for the support. And I I just think it's just such an exciting time. And and I haven't even talked about our Greenland project either where we've currently got field activities underway. So I hope you can all join us, and I hope this is the first of many occasions that I'm on an investor meet company. That's great.

27:26 And great to have you and wish you all the success moving forward. Could I please ask investors not to close this session as we're now automatically redirect you for the opportunity to provide your feedback in order that the management team can really better understand your views and expectations? This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of PULSAR HELIUM INC, we'd like to thank you for attending today's presentation, and good afternoon to you all.