Mr. Edward Bereznicki reports

FIRST HELIUM ANNOUNCES STRATEGIC SHALLOW HEAVY OIL ACQUISITION

First Helium Inc., through its wholly owned subsidiary First Helium Alberta Inc., has entered into a definitive purchase and sale agreement with an arm's-length third party to acquire select shallow heavy oil assets in the company's core Worsley area, north of Grande Prairie, Alta., Canada.

Acquisition highlights:

• Existing shut-in shallow heavy oil pool with significant remaining recoverable oil potential;
• Reactivation opportunity targeting approximately 300 barrels of oil per day from six wells and up to 400 bbl/d through additional reactivations;
• 11 identified horizontal drilling locations supporting low-risk growth opportunity;
• Existing oil production and water-handling infrastructure expected to support lower-cost development;
• The acquisition includes approximately 3,360 acres of 100-per-cent working interest lands attributed to the pool (as mapped); total land: 5,760 net acres;
• The pool will be operated by First Helium;
• Expansion potential across approximately 6,200 acres of available lands;
• Complementary to the company's existing Charlie Lake shallow heavy oil project.

"This transformational acquisition provides a compelling opportunity to add near-term heavy oil production in our core Worsley area and expand our inventory of development opportunities in a play we know well," said Ed Bereznicki, president and chief executive officer of First Helium. "With existing wells, infrastructure and identified horizontal drilling locations, the assets offer scale and a clear path to meaningful cash flow growth while complementing our broader oil and helium development strategy."

The acquired assets include a shut-in shallow heavy oil pool with historic productive capacity of approximately 450 to 500 bbl/d. First Helium has identified a reactivation opportunity targeting approximately 300 bbl/d from six existing wells, with the potential to increase production to approximately 400 bbl/d through additional well reactivations.

The company has also identified 11 new development drilling locations on the current land base where modern multileg horizontal drilling technology can be applied to improve on the pool's legacy single and dual-leg horizontal development. First Helium's objective is to increase production within two years using modest incremental capital and internally generated cash flow. In addition to new drilling, selected pool wide water flood optimization is expected to support higher recoveries. The acquisition is expected to be highly synergistic with First Helium's existing Worsley operations and Charlie Lake shallow heavy oil play, and provides potential expansion upside through approximately nine three-fourth sections of available land.

"Importantly, the acquisition is expected to leverage our regional operating knowledge and existing Worsley footprint, including our Charlie Lake shallow heavy oil discovery, to pursue disciplined production growth with modest incremental capital," added Mr. Bereznicki. "The combination of reactivation potential, additional drilling locations, water flood upside and nearby expansion lands gives First Helium multiple avenues to create value for shareholders."

Transaction details

The vendor has agreed to sell specified Worsley-area oil and gas assets to First Helium with an effective date of Jan. 1, 2026. The company will assume the asset retirement obligations liability associated with the acquired assets and post a specified ARO security deposit in accordance with the agreement. The transaction includes petroleum and natural gas rights, associated facilities, and related interests, subject to customary adjustments and escrowed closing mechanics. Closing is subject to regulatory approvals (including the approval of the TSX Venture Exchange), completion of financing and license transfers with the Alberta Energy Regulator (including the posting of such security required by the AER to secure the company's ARO associated with the acquired assets), and the satisfaction of additional vendor security requirements. The total amount of the ARO security requirements, inclusive of the purchase consideration, agreed to between the company and the vendor, as specified in the agreement, is approximately $7.8-million, subject to review by the AER. To meet the filing requirements of the TSX-V, the company has engaged Sproule ERCE, independent qualified reserves evaluator, to prepare a National Instrument 51-101-compliant evaluation utilizing the standards outlined in the Canadian oil and gas evaluation handbook. Sproule ERCE is independent to both the company and the vendor. No finders' fees are payable by the company, nor will the company be issuing any securities to the vendor in connection with the agreement.

Existing Charlie Lake shallow heavy oil project

The acquisition is expected to complement First Helium's existing Charlie Lake shallow heavy oil play by adding nearby production, infrastructure and development opportunities that support the company's broader Worsley growth strategy.

First Helium's Charlie Lake development program is supported by encouraging results from the 7-30 discovery well and nearby drilling, together with historical offset data identifying the formation as a viable heavy oil target. The company plans to apply proven multileg horizontal drilling technology, beginning with a well drilled from the existing 1-30 surface location and facilities. Depending on success, the company has identified over 30 follow-up drilling locations across 10 sections of land.

Continuing strategic initiatives

First Helium is advancing a corporate repositioning strategy focused on shallow heavy oil development at Worsley, supported by its recent Charlie Lake discovery and the proposed strategic production acquisition. The plan includes recapitalizing the company, shifting the company's senior oil and gas technical team's focus, and applying multileg horizontal drilling technology to target approximately 2,000 bbl/d within two years, while continuing to pursue value creation opportunities for its helium-enriched natural gas assets.

"Our focus remains on advancing our assets in a disciplined manner while positioning the company to capitalize on evolving global energy dynamics," added Mr. Bereznicki.

About First Helium Inc.

Led by a senior executive team with extensive experience in oil and gas exploration and operations, mining, finance, and capital markets, First Helium is pursuing a shallow heavy oil growth strategy while preserving the option to develop its premium North American helium-enriched natural gas assets.

First Helium holds more than 30,000 acres along the highly prospective Worsley trend in Northern Alberta, which has been the focus of the company's exploration and development drilling activities.

Building on its 7-30 shallow heavy oil discovery, 15-25 helium discovery, 1-30 and 4-29 light oil wells, and 5-27 helium-enriched natural gas evaluation well, the company has identified follow-up drilling locations and acquired infrastructure to support future development at Worsley. Cash flow from the company's Worsley oil wells has helped advance its continuing exploration and development strategy.

We seek Safe Harbor.