Mr. Greg Robb reports

HELIUM EVOLUTION PROVIDES UPDATE ON 10-1 HELIUM DISCOVERY AND DRILLING PLANS

Helium Evolution Inc. has provided an update on its helium discovery following the completion of the Deadwood zone and initial testing of the joint well drilled at 10-1-4-9W3 (10-1 well).

On Dec. 16, 2024, the company announced that the 10-1 well successfully flow tested at approximately 9.5 million standard cubic feet per day with a flowing tubing pressure of 10,800 kilopascals during the four-day extended flow period. The gas composition of the 10-1 well revealed 0.75 per cent helium and 96.3 per cent nitrogen, with the balance comprising fractional percentages of minor component gases. Helium concentrations above 0.3 per cent are deemed commercially viable.

Since Helium Evolution's initial announcement, a postflow pressure transient analysis (PTA) of the 10-1 well, conducted by Petro Management Group Ltd., has provided encouraging insights. The PTA utilized a composite reservoir model to assess pressure response, flow rates, reservoir properties and potential pool boundaries, all of which are important data points for guiding future development plans in the area. The PTA indicated no reservoir pressure depletion or discernible reservoir boundaries, suggesting the presence of a potentially large, expansive and productive reservoir. Additionally, bottom-hole pressures recorders were installed in the offsetting well, located approximately two kilometres away at 9-35-3-9W3 (9-35 well), during the 10-01 well's flow test. Analysis of this pressure data confirmed pressure communication between the two wells, further supporting the potential of a large, continuous reservoir. The PTA also calculated an absolute open flow potential of 26.0 million standard cubic feet per day, which is approximately 95 per cent higher than the 9-35 well. Furthermore, the absence of water during the test period is a favourable factor for helium recovery and processing.

"We are excited by the promising results from the 10-1 well, which underscore the potential for a large and productive helium reservoir in Southern Saskatchewan," said Greg Robb, chief executive officer of Helium Evolution. "The positive findings from the PTA, including the high absolute open flow potential and the favourable gas composition, provide us with additional confidence as we continue to advance our exploration and development activities. The upcoming drilling programs further reinforce our commitment to growing our helium assets and delivering value to shareholders."

Helium Evolution is also pleased to announce that its partner, North American Helium Inc. (NAH), has served the company notice of its intention to move a second drilling rig into the Mankota area to drill a joint well. The 12-29-2-8W3 (12-29) well is expected to spud on or around Jan. 20, 2025. Helium Evolution is pleased to confirm its participation in the drilling of the 12-29 well, with the company holding a 20-per-cent working interest. The estimated total cost for Helium Evolution's share in the 12-29 well is approximately $400,000 net.

Coming catalysts:

• 10-36-3-9W3 (10-36 well) -- drilling is currently under way;
• 5-30-3-8W3 (5-30 well) -- anticipated to spud on or around Jan. 20, 2025, immediately following the rig release of the 10-36 well;
• 12-29 well -- anticipated to spud on or around Jan. 20, 2025;
• 3-19-3-8W3 (3-19 well) -- anticipated to spud on or around Feb. 7, 2025.

As always, Helium Evolution is committed to updating the market on significant events and developments as information becomes available.

About Helium Evolution Inc.

Helium Evolution is a Canadian-based helium exploration company holding the largest helium land rights position in North America among publicly traded companies, focused on developing assets in Southern Saskatchewan. The company has 5.6 million acres of land under permit near proven discoveries of economic helium concentrations, which will support scaling the exploration and development efforts across its land base. Helium Evolution's management and board are executing a differentiated strategy to become a leading supplier of sustainably produced helium for the growing global helium market.

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