Mr. Chris Bakker reports

AVANTI HELIUM ANNOUNCES SIGNIFICANT UPDATED RESOURCE ESTIMATE FOR GREATER KNAPPEN

Avanti Helium Corp. has received an updated contingent resource estimate from McDaniel & Associates Ltd. dated Jan. 31, 2023. The updated total unrisked P50 contingent resource estimate for the Sweetgrass pool in Greater Knappen has increased by 22 per cent to 221 MMcf (million cubic feet) of net recoverable helium.

This volume represents the best estimate of the unrisked contingent resource and best estimate of the unrisked prospective resource.

Chris Bakker, Avanti chief executive officer, comments: "The company has made tremendous progress developing the Sweetgrass pool and seeing our resource estimates from McDaniel increase across the board highlights the technical acumen of the team. The thorough independent review and update by McDaniel shows that the Greater Knappen project remains underpinned by significant helium resource. With this update we have more than doubled our lowest-risked volumes and elevated our medium- and high-case volumes. We believe that our Greater Knappen project presents a massive opportunity to the growing demand for helium from a wide spectrum of sectors such as medical, electronics and aerospace. The conservative approach we've taken to the highest standards in the industry resulting in increased certainty allow us to be confident in solidifying facilities design and future development of the area."

Additional information regarding the contingent and prospective resource estimate

The company's net interests in mineral lands that contain a contingent and prospective resource estimate vary from approximately 91 per cent to approximately 75 per cent. While there are no estimates currently available, the company has engaged a facility engineering firm to assess recovery technologies and associated costs. The company is working toward an onstream production target of late 2023 to early 2024 but this cannot be offered as a firm estimate at this time.

Like all projects at this stage of advancement, the Greater Knappen resource is contingent on financing for development and production and, due to the standard cautions regarding resource price fluctuations and project development and construction risk, there is uncertainty that the project will be commercially viable to produce any portion of the contingent resources.

The estimates presented in this news release are based on data and test results from two wells. There is potential for future drilling activity to materially impact the estimated volumes based on additional geological data and production testing. Estimated pool volumes may increase or decrease in the future. Additionally, the contingent resources estimated for the Sweetgrass pool and offsetting locations relies on comparisons with analogous wells, and no production data are available from the well included in this estimate. Accordingly, the reader is cautioned that disclosure of helium in place volumes is not included in National Instrument 51-101 guidelines.

Information regarding the contingent resources

The effective date of the contingent resource estimate is Jan. 31, 2023, and was prepared in accordance with the Canadian Oil and Gas Evaluation Handbook.

This news release discloses estimates of the company's contingent and prospective resources. The company defines contingent resources as those quantities of helium gas estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development but which are not currently considered to be commercially recoverable due to one or more contingencies. The company defines prospective as those quantities of helium gas estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. There is uncertainty that contingent and prospective resources will be commercially viable to produce any portion of the resources. Contingent resources do not constitute, and should not be confused with, reserves. Prospective resources are not, and should not be confused with, reserves or contingent resources.

The resource provides an estimate of raw gas. In February, 2023, preliminary lab results showed the raw gas composition of Cambrian zone at the WNG 10-21 well was 97.5 per cent nitrogen, 1.1 per cent to 1.2 per cent helium, 1.1 per cent methane, 0.3 per cent carbon dioxide and trace amounts of other hydrocarbons.

The resource estimates presented above are subject to certain risks and uncertainties, including those associated with the drilling and completion of future wells, limited available geological data, prices of the various raw gases and geophysical data, and uncertainties regarding the actual production characteristics of the reservoirs, all of which have been assumed for the preparation of the resource estimates.

The resources are classified as development pending.

Each of contingent resources and prospective resources are defined as those quantities estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. There is a range of uncertainty of estimated recoverable volumes. A low estimate (1C) is considered to be a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate, which under probabilistic methodology reflects at least a 90-per-cent confidence level. A best estimate (2C) is considered to be a realistic estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate, which under probabilistic methodology reflects at least a 50-per-cent confidence level. A high estimate (3C) is considered to be an optimistic estimate. It is unlikely that the actual remaining quantities recovered will exceed the high estimate, which under probabilistic methodology reflects at least a 10-per-cent confidence level. There is uncertainty that it will be commercially viable to produce any portion of the resources.

All of the resources classified as contingent are considered to be discovered, and as such have been assigned a 100-per-cent chance of discovery, but have, however, been risked for the chance of development. The chance of development is defined as the likelihood of a project being commercially viable and development proceeding in a timely fashion. Determining the chance of development requires taking into consideration each contingency and quantifying the risks into an overall development risk factor at a project level.

Contingent resources can be subcategorized by project maturity status:

1. Development pending is where resolution of the final conditions for development is being actively pursued (high chance of development). Resources classified in this subcategory must be economic and have been assigned a chance of development ranging between 80 per cent and 99 per cent;
2. Development on hold is where there is a reasonable chance of development, but there are major non-technical contingencies to be resolved that are usually beyond the control of the operator. Resources classified in this subcategory must be economic and have been assigned a chance of development ranging between 50 per cent and 79 per cent;
3. Development unclarified is where the evaluation is incomplete due to the project being in an early stage of maturity and there is continuing activity to resolve any risks or uncertainties. Resources classified in this subcategory can either be economic or subeconomic and have been assigned a chance of development ranging between 20 per cent and 79 per cent.
4. (iv) Development not viable is where no further data acquisition or evaluation is currently planned and hence there is a low chance of development. Resources classified in this subcategory can either be economic or subeconomic and have been assigned a chance of development ranging between 0 per cent and 49 per cent. Based on these definitions, all of the contingent resources disclosed in this news release are classified as development pending and are considered economic with either a high or reasonable likelihood of being commercially viable.

In general, contingencies which prevent contingent resources from being classified as reserves are grouped under three categories: economic contingencies, non-technical contingencies and technical contingencies. Economic contingencies are applicable only in the case of subeconomic contingent resources. As all of the contingent resources disclosed in this news release are classified as economic contingent resources; there are no economic contingencies in respect of such resources. Non-technical contingencies include factors such as required corporate or third party (such as joint venture partners) approvals, legal, environmental, political, social licence and regulatory matters, or a lack of infrastructure or markets. Technical contingencies are applicable where there is a technology currently under development that would be required to classify the contingent resources in question as reserves. None of Avanti's estimated contingent resources are subject to technical contingencies.

Significant positive and negative factors relevant to the estimates

Significant positive factors relevant to the estimates include:

• Commercial success of drilling;
• Corporate commitment to develop plays over a reasonable time frame;
• Significant well control and offsetting economic well production;
• Proximity to infrastructure for production growth and central market hubs;
• Low political risk as all reserves and resources are located in North America.

Significant negative factors relevant to the estimates include:

• Potential for low commodity prices impacting the economic viability and development of certain areas;
• Access to and amount of capital required to develop resources at an acceptable cost;
• Significant production growth and access to infrastructure capacity;
• Development uncertainty relating to surface access matters.

The specific contingencies resulting in the classification of contingent resources herein are based on existing access to infrastructure capacity and the current regulatory frameworks in which Avanti operates.

Greater Knappen

One hundred per cent of the contingent resources disclosed in this news release are located in the Greater Knappen property and are classified as development pending with a chance of development of 90 per cent. There are no technical contingencies preventing the classification of economic contingent resources as reserves as all economic contingent resource are considered discovered and are based on established technology. The non-technical contingencies that must be resolved before these resources may be classified as reserves are the establishment of processing and sale agreements, and corporate commitment to develop these assets in a timely fashion.

About Avanti Helium Corp.

Avanti Helium is focused on the exploration, development and production of helium across Western Canada and the United States. Avanti's professional oil and gas exploration and production team is actively targeting helium trapped in structures to help meet the increasing global demand for an irreplaceable and scarce element critical to advanced technology, medical and space exploration industries.

We seek Safe Harbor.