Royal Helium Announces $25 million Joint Venture Funding Agreement with Sparrow Hawk

Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT.A) (OTCQB: RHCCF), referred to as "Royal" or the "Company," and Sparrow Hawk Developments Ltd., known as "Sparrow Hawk," are delighted to declare the signing of an Economic Participation Agreement (the "Agreement") and a letter of intent (the "LOI") for a joint venture investment of $25,000,000 by Sparrow Hawk in the advancement of Royal’s Val Marie helium project situated in southwestern Saskatchewan.

As per the Agreement and the LOI, Sparrow Hawk will inject $25,000,000 into the drilling and finalization of new wells, along with the establishment of the corresponding helium purification facility. Under the LOI provisions, Sparrow Hawk will hold an estimated 57.5% non-operating working interest in the wells and approximately 46% non-operating interest in the processing facility.

Mr. Andrew Davidson, the Chief Executive Officer of Royal Helium, expresses, "This joint venture marks an exciting progression in Royal's endeavor to propel the development of its extensive helium reservoirs and bring additional facilities online annually. Equally significant, this collaboration underscores Royal's dedication to further involving First Nations groups in resource development endeavors and fostering economic growth in the province. This historic partnership with Sparrow Hawk to advance economic development in the Treaty 4 Territory marks a pivotal initial stride toward these goals. This significant Agreement and LOI ensure First Nations' involvement at the earliest stages of resource development in the province, with a shared commitment to economic reconciliation and mutual benefit."

Mr. Alex Fallon, CEO of Sparrow Hawk, remarks, "This collaboration and our intended ownership in helium production facilities and the helium resource itself signify not only a step towards economic reconciliation but also pave the way for a multi-million dollar investment to cultivate Saskatchewan's helium industry and supply helium to customers worldwide."

"This marks a landmark partnership, granting Sparrow Hawk ownership in a significant critical minerals project and upholds the essence of Treaty 4, which aimed to distribute the resources within this territory," Mr. Fallon elaborated.

The Val Marie helium project encompasses a 32,000-acre lease land package extending over a 21-year period, constituting roughly 3% of Royal's existing helium permits and leased lands across Saskatchewan and Alberta. Positioned just north of the Saskatchewan-Montana border, Val Marie resides atop the Bowdoin Dome, a significant geological uplift system renowned for its productive natural gas reserves, including recent successful helium production wells on the Montana side of the formation. In August 2022, the Company initiated drilling at Val Marie, revealing some of Royal's most promising helium indications to date through gas detection equipment installed on the drill bit, spanning multiple stacked zones, including the Duperow, Souris River, and Deadwood formations.