State-16 Well, Galactica Project Update

Summary

• New samples from the State-16 well show a helium concentration of 2.17%, representing a material increase from the previously reported non air-corrected average of 1.65%
• The new samples also show 36.26% nitrogen and 61.56% carbon dioxide
• The well head pressure was recorded at 10 psig during sampling, the highest observed at the well to date, indicating encouraging reservoir connectivity
• Gas samples obtained from Jackson-31 still being analysed

Details

The Company is pleased to announce a significant increase in helium concentrations measured at the State-16 development well at the Galactica Project in Las Animas County, Colorado.

The State-16 well, which is part of the Galactica Project, was drilled in May 2024. During the current drilling campaign, Blue Star have taken the opportunity to re-sample gas from the well and have had the samples analysed by Gas Analysis Service.

Blue Star previously reported lab analysis of representative reservoir samples taken during flow testing which contained an average helium percentage of 1.65%, and up to 1.90% when air-corrected. The reservoir gas compositions were approximately 1.65% helium, 28.05% nitrogen and 70.29% carbon dioxide from the lab analysis and 1.90% helium, 28.54% nitrogen and 69.56% carbon dioxide when air-corrected.

The latest samples, taken from the well head, demonstrate a significant rise in helium concentration to 2.17% (not air-corrected). This increase is attributed to the reservoir's natural equilibration process occurring near the well bore.

The recorded well head pressure of 10 psig is a positive indicator of reservoir connectivity and long-term flow potential.

The well is currently completed for tie-in to production facilities.

Gas samples from the recent Jackson-31 well are still being analysed.

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