TSXV: HELI OTCQB: FHELF FRA: 2MC

receives $1.2 million for oil deliveries in June

CALGARY, Alta., August 2, 2022 /CNW/ – First Helium Inc. (“First Helium” or the “Company”) (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC), today announced that it has received a reserves report from its independent evaluator, prepared in accordance with NI 51-101 guidelines, indicating Total Proven plus Likely (“2P”) gross reserves of 505,100 barrels of light oil with a corresponding NPV of 10% of $24.6 million1.2for its oil property in Worsley. In addition, the Company received revenues of approximately $1.2 million at the end of July for the volumes of oil that the Company delivered for sale during the month of June. At the end of June, the Company realized revenues of approximately $0.7 million for the volumes of oil that the Company delivered for sale during the month of May.

“When combined with the Independent Contingent Resource5 evaluation of First Helium’s 15-25 well, the receipt of an independent assessment of the Company’s light oil reserves further confirms the value of First Helium’s underlying asset,” said Ed Bereznicki, President and CEO of First Helium. “First Helium intends to deploy continued cash flow from its oil production to help fund further exploration of the many internally generated helium drilling locations identified on its Worsley property and lands of southern Alberta. These opportunities represent significant growth potential for First Helium shareholders beyond established asset value,” added Mr. Bereznicki.

Growth, beyond established asset value

First Helium’s geoscience team has identified numerous potential drill sites on the largely undeveloped remains of its 79,000 acres Worsley property. These locations are based on detailed geological and geophysical mapping with the incorporation of nearly 15,000 acres of 3D seismic data and approximately 210 km of 2D seismic data. Similarly, the team has identified a number of potentially high-impact locations on its Southern Alberta Region (Lethbridge) land, including a drill-ready location for later this year.

“With 3D seismic data covering approximately 60% of the 276,000 acres Lethbridge ground base, the company was able to assess potential targets that are similar to known helium accumulations at Knappen, Battle Creek and Cypress,” commented David Safton, Vice-President Exploration & Development. “We have targets with a four-way closure at the Basal Cambrian Sandstone and Beaverhill Lake/Souris River levels. These formations possess excellent porosity and permeability, and based on helium content at Knappen, for wells successful, we expect a helium content of about 1% in the Lethbridge region,” Mr. Safton added.

Building on the preliminary “FEED” (Front End Engineering Design) study work that began in the spring of 2021, First Helium has now completed the FEED study of a larger scale helium processing facility that can be applied to meet the immediate schedule requirements of its 15 -25 single-well helium processing facilities at Worsley. The Company is currently in the process of entering into helium gas sales agreements to help support the financing, fabrication, installation and commissioning of a single-well helium gas processing facility for 15 to 25, which is expected to start later this year.

Independent Evaluation of Sproule Reserves

In July 2022the Company received an independent report, focusing on its oil property at Worsleytitled “Evaluation of First Helium Inc.’s P&NG Reserves in the Beaton Area of Alberta, Canada (from March 31, 2022)” (the “Reserves Report”) of Sproule Associates Limited (“Sproule”). Sproule has conducted its valuation in accordance with the standards set out in the current Canadian Oil and Gas Evaluation Handbook, as maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter).

Specifically, Sproule estimated the total proven and probable gross reserves associated with the First Helium oil property, including wells 1-30 and 4-29. In summary, Sproule estimated total proven reserves at 287,900 barrels and total probable reserves at 217,300 barrels of light oil, respectively. Sproule further estimated that the 2P gross reserves have a net present value, discounted at 10%, of approximately $24.6 million1.2which is equivalent to a base amount of approximately $0.33 per basic common share outstanding3 the company. First Helium has filed the required disclosure, in accordance with National Instrument 51-101, Disclosure Standards for Oil and Gas Activities (“NI 51-101”), in connection with this press release4.

Establishing a base of oil reserves will provide the Company with greater financial flexibility to pursue its business objective of exploring and developing helium projects. Production from its oil property in Worsley will provide cash to help fund these activities. During the month of June, First Helium produced a total of 9,592 barrels of light oil, an average of 320 barrels per day. Persistent wet weather in early June continued to hamper the Company’s operations at its Worsley battery oil, including temporarily suspending truck access to pick up and transport battery oil to the sales terminal.

ABOUT FIRST HELIUM

Led by a team of senior executives with diverse and extensive experience in oil and gas exploration and operations, mining, finance and capital markets, First Helium seeks to be the one of the main independent suppliers of helium gas in North America.

Building on its successful helium 15-25 discovery well at the Worsley project, the Company has identified numerous follow-on drilling locations and acquired an extensive infrastructure system to facilitate future helium exploration and development across its Worsley land base. Cash flow from its successful oil wells to Worsley will help support First Helium’s continued growth strategy for helium exploration and development.

First Helium owns over 79,000 acres along the highly prospective Worsley Trend in Northern Alberta, and 276,000 acres in the Southern Alberta Helium Channel, near existing helium production. In addition to continuing its ongoing exploration and development drilling at Worsleythe Company has identified a number of high impact helium exploration targets on the prospective lands of the Southern Alberta Helium Fairway to create a second core exploration growth area for the Company.

For more information about the Company, please visit www.firsthelium.com.

ON BEHALF OF THE BOARD OF DIRECTORS

Edward J. Bereznicki

President, CEO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

FORWARD-LOOKING AND CAUTIONARY STATEMENTS

This press release contains certain statements or disclosures relating to First Helium that are based on management’s expectations and assumptions made by and information currently available to First Helium that may constitute forward-looking statements or information (“forward-looking statements ” ) under applicable securities laws. All such statements and disclosures, other than those of historical fact, that address activities, events, results, results or developments that First Helium anticipates or expects will occur or occur in the future ( in whole or in part) should be considered forward-looking. research statements. In some cases, forward-looking statements can be identified by the use of the words “expects”, “will” and similar expressions. In particular, but without limiting the foregoing, this press release contains forward-looking statements regarding the timing and rate of production from discovery wells 4-29 and 1-30, respectively; expected cash flows; entering into off-take marketing arrangements; the use of funds and the Company’s strategy. The forward-looking statements contained in this press release reflect several important factors and First Helium’s expectations and assumptions, including, without limitation: that First Helium will continue to conduct its operations in a manner consistent with past operations; the general continuation of current or, as the case may be, assumed industry conditions; the availability of sources of debt and/or equity to fund First Helium’s capital and operating needs as needed; and certain cost assumptions.

Forward-looking statements are based on management’s estimates and opinions as of the date they are made and are subject to risks, uncertainties and assumptions, including those set forth in the final prospectus dated June 28, 2021 and filed under the Company’s profile on SEDAR at www.sedar.com. Readers are cautioned that actual results may differ materially from the forward-looking statements made in this press release. Risks that could cause actual events or results to differ materially from those projected in the forward-looking statements include, but are not limited to, risks associated with the oil and gas industry; First Helium’s ability to fund capital and operating expenditures necessary to achieve its business objectives; the impact of the COVID-19 pandemic on First Helium’s business and operations; the state of financial markets; increased costs and physical risks related to climate change; the loss of key employees and the risks described in the Final Prospectus dated June 28, 2021. First Helium undertakes no obligation to update forward-looking statements, except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.

SOURCE First Helium Inc.

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