RHC Royal Helium Ltd

SASKATOON, SK, June 29, 2023 /CNW/ - Royal Helium Ltd. (TSXV: RHC) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that that its wholly-owned subsidiary, Imperial Helium Corp. ("Imperial"), has agreed to acquire a significant new project located in the vicinity of the Company's Steveville asset in southern Alberta from an arm's-length private company (the "Vendor").  Pursuant to the terms of a purchase and sale agreement among Royal, the Vendor and Imperial (the "Purchase and Sale Agreement") Imperial has now exercised its sole and exclusive one-time option to purchase the Asset pursuant to the terms of a revised seismic review and option to purchase agreement between Imperial and the Vendor.

Andrew Davidson, President & CEO states, "As the Steveville helium processing facility nears completion for our first helium production and sales, we are pleased to expand our footprint in Alberta and look toward developing another helium field in the province."

Royal's geological and engineering team has determined that the newly acquired land in Alberta holds significant potential for high flow rate helium enriched gas in the Cambrian and Devonian horizons in at least two structures identified in the acquired and reprocessed 2D seismic. Royal has plans for an initial drill program for the fall/winter season of 2023. Details will be provided once the program is finalized.

The Asset includes the entire right, title, estate and interest to drill, explore, and produce as well as all surface rights and records not in the public domain.

Shayne Neigum COO comments, "This new project area presented something unique to other areas that we have reviewed, with the presence of existing historic test data demonstrating high flow rate inert gas and confirmed, significant helium concentrations.  Upon completion of the seismic program, which began in the fourth quarter of 2022, it became clear that this will become one of our highest priority areas, as all of the geological features required of a successful helium production reservoir have been confirmed."

Pursuant to the terms of the Purchase and Sale Agreement, the total purchase price for the Asset will be $400,000 consisting of a combination of cash consideration and a number of common shares in the capital of the Company (the "Common Shares") that represents the equivalent of $160,000, with such Common Shares to be at a deemed value as the volume-weighted average market price of the Common Shares for the five (5) Business Days prior to the closing date, or such other deemed price as prescribed and acceptable to the TSX Venture Exchange, which amounts to 468,796 Common Shares at a deemed price of $0.3413. No finders fees are payable in connection with the transaction and no non-arm's length parties are involved in the transaction.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium. The Company controls over 1,000,000 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.

Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas (GHG) and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 90% less carbon intensive than helium extraction processes in other jurisdictions.

Andrew Davidson                                                     
President and Chief Executive Officer                                                        
Royal Helium Ltd.                                                      

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This news release includes certain statements that may be deemed to be "forward-looking statements". All statements in news this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements, including, the Company's intended use of the net proceeds of the Offering. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management's beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.

SOURCE Royal Helium Ltd.