Helium One Results and Progress Update

Helium One ended 2022 with a net cash balance of US$13.7mm, providing ample cash for its upcoming drilling campaign. In H2'22, cash outflow from operations was US$1.6mm and capital expenditure US$1.5mm. In 2023, it entered a co-operation agreement with Noble Helium, as well as developed further helium potential resource targets and commenced an ESIA in the Eyasi region. The team is currently actively negotiating a rig contract and remain focused on identifying a rig to enable them to fulfil their 2023 drilling programme. We expect exploration drilling to commence in Q3'23. A strategic approach was adopted to review the PLs, with the Company relinquishing 1,548 km2 realising an annual cost saving in licensing fees of $309,600.

Press Release:

Helium One Global Limited, the primary helium explorer, is pleased to announce its unaudited condensed and consolidated results for the six months ended 31 December 2022, as well as provide an update on the Company's progress on its projects in Tanzania post the half year end.

Highlights

Post the period end

Ian Stalker, Chairman of Helium One commented:

"Securing a rig for the planned campaign at Rukwa is the Company's number one priority and the team is working tirelessly to ensure this happens swiftly. The exploration work that has been carried out to date has significantly de-risked the Rukwa project and we are excited about the drilling programme which we believe has the potential to prove up what we believe to be a world class helium province.

"We look forward to providing further updates as our programme progresses."

CEO's Statement

The six-months ended 31 December 2022 was a frustrating period for the Company. On the operational side, Helium One was proactively pursuing a number of rig options which, unfortunately, culminated in a series of setbacks due to contractual issues around rig export and operators extending drilling programmes, preventing us from securing our preferred rig of choice. This has led to significant setbacks for the Company, and, in a dynamic rig market, it is critical we focus our efforts on securing a rig that meets our technical requirements, whilst also being within our budget. The Company remains focused on identifying a rig to enable us to fulfil our 2023 Drilling programme and is currently actively negotiating a rig contract.

The co-operation Agreement with Noble Helium (ASX: NHE) enables both companies to cooperate in sourcing and securing a suitable drilling rig, associated services and logistics. The agreement will ensure that the Company's outlined timings remain unchanged, keeping us on track for commencement of drilling in Q3.

In September, the Company renewed a number of its Prospecting Licences ("PLs") across Rukwa, Eyasi and Balangida. A strategic approach was adopted to review the PLs, with the Company relinquishing 1,548 km2 across the Rukwa Rift area that were considered to have little to no prospectivity and/or sub-optimally located for cost conscious exploration. As a result, the Company will realise an annual cost saving in licensing fees of $309,600.

In the last quarter, the subsurface team undertook an extensive study with Getech, leading experts in gravity and magnetics data interpretation, to better evaluate the structural geometries of the Eyasi and Balangida Rift Basins.The gravity-magnetic 3D inversion study has included the development of an advanced data analytical workflow, integrating proprietary high-resolution Falcon AGG data with regional aero-magnetic, land based gravity and radiometric data for improved model calibration.The results of this study have proved to be highly valuable in gaining a greater understanding of depth to basement (sediment thickness) within the basins as well as being used to identify structural geometries as potential exploration targets for further evaluation.

The completed study has generated a detailed series of maps, increasing our knowledge of depth to basement and sediment thickness across the Balangida and Eyasi Rift Basin areas, and enabled greater understanding of the Rift geometry, basin evolution and subsurface structure to aid the development of our ongoing exploration programme. Conclusions of this work will allow the technical team to draft a forward work programme for both basins, with a view to acquiring 2D seismic late 2023/early 2024.

Work has also commenced on the environmental application process (Environmental and Social Impact Assessment or "ESIA") on the Eyasi region with a community engagement effort on the ground through our stakeholders, EcoServices. The ESIA process, which will take six to nine months to complete, will enable the Company to undertake seismic acquisition in the region.

As a result of recent executive changes, Kai Gruschwitz has been appointed Technical Director (non Board) having being a Consultant Geophysicist on the Rukwa project for the past nine months. Kai brings a wealth of technical knowledge and is a proven oil and gas finder with over 25 years' experience in the industry. In conjunction with the Board, the team are focused and committed to deliver a successful drilling campaign for Helium One in 2023.

As is to be expected with an exploration company, for the six-month period ended 31 December 2022 the Group reported an unaudited pre-tax loss of $1,221,998 (six months ended 31 December 2021, unaudited: $1,917,541). The Company continues to be well funded with a cash balance of $13.7 million as at 31 December 2022, following the completion of the successful £9.9 million fundraise in December.

The remainder of the financial year will continue to be a busy period for the Company. Notwithstanding the challenges the Company has faced, we remain confident in the project and are committed to securing a rig and remaining on track for a Q3 spud later this year.

I would like to take this opportunity to thank all our stakeholders for their continued support and look forward to providing further updates as we look to secure a rig and deliver our drilling campaign.