Mr. Andrew Davidson reports

ROYAL HELIUM AND SPARROW HAWK DEVELOPMENTS ENTER INTO A $25 MILLION ECONOMIC PARTNERSHIP AND LOI FOR RESOURCE DEVELOPMENT AND NEW FACILITY CONSTRUCTION IN SASKATCHEWAN

Royal Helium Ltd. and Sparrow Hawk Developments Ltd. have entered into an economic participation agreement and a letter of intent (LOI) for a $25-million joint venture investment by Sparrow Hawk in the development of Royal's Val Marie helium project located in southwestern Saskatchewan.

Under the terms of the agreement and the LOI, Sparrow Hawk will invest $25-million into the drilling and completion of new wells, as well as the construction of the associated helium purification facility. Pursuant to the LOI terms, Sparrow Hawk will have an approximate 57.5-per-cent non-operating working interest in the wells and an approximate 46-per-cent non-operating interest in the processing facility.

Andrew Davidson, chief executive officer of Royal Helium, states: "This joint venture represents an exciting next step in Royal's mission to advance the development of its extensive helium resources and bring additional facilities on-line each year. Of equal importance, this partnership highlights Royal's commitment toward further inclusion of first nations groups in the resource development activities and the economic growth in the province. This historical partnership with Sparrow Hawk to advance the economic development in the Treaty 4 territory is an important first step toward these objectives. This important agreement and LOI ensures first nations participation at the earliest possible stage for resource development in the province, with a shared commitment to economic reconciliation and benefit."

Alex Fallon, chief executive officer of Sparrow Hawk, states: "This partnership and our planned ownership in helium production plants and of the helium resource itself, is not only a form of economic reconciliation, but it also sets the path for a multimillion-dollar investment to develop Saskatchewan's helium sector and export helium to customers around the globe.

"This is a historic partnership that will provide Sparrow Hawk with ownership in a major critical minerals project and honours the spirit of Treaty 4, which was to share the resources in this land," Mr. Fallon continued.

About the Val Marie project

The Val Marie helium project comprises a 32,000-acre, 21-year lease land package representing approximately 3 per cent of Royal's current helium permit and lease lands across Saskatchewan and Alberta. Val Marie is located immediately north of the Saskatchewan-Montana border, sitting atop the Bowdoin dome, a large geological uplift system that has been a prolific natural gas production area, with successful helium production wells recently drilled on the Montana side of the structure. The company drilled its initial well at Val Marie in August of 2022, with some of Royal's highest helium showings to date from drill bit gas detection equipment from multiple stacked zones -- the Duperow, Souris River and Deadwood formations.

Sparrow Hawk-Royal partnership

The partnership agreement will also see Sparrow Hawk support Royal's economic reconciliation strategy:

• Sparrow Hawk and Royal will work together to advance economic reconciliation in Treaty 4 territory and seek to create employment opportunities for Peepeekisis Cree Nation and first nations people in Saskatchewan's growing helium sector.
• Sparrow Hawk and Royal commit to partnering on future helium opportunities in Saskatchewan as and when they materialize.
• Sparrow Hawk will engage first nations' training organizations to provide indigenous culture training and education opportunities to Royal and its subcontractors.
• Sparrow Hawk will play a lead role in engaging other first nation organizations and partners to work together on economic opportunities that may arise as a result of this partnership.

The agreement and LOI are subject to final financial arrangements, and provincial, regulatory and TSX Venture Exchange approvals.

About Royal Helium Ltd.

Royal is an exploration, production and infrastructure company with a primary focus on the development and production of helium and associated gases. The company's expansive footprint includes 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 with 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 per cent less carbon intensive than helium extraction processes in other jurisdictions.

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