Further update on Fort Dodge & Nebraska operations

Mendell Helium is pleased to provide an update on M3 Helium Corporation's ("M3 Helium") Rost 1-26 well in Fort Dodge, Kansas ("Rost") and the Jasper well in Nebraska.

As announced on 27 June 2024, the Company has an option (the "Option") to acquire M3 Helium, a producer of helium which is based in Kansas and holds an interest in eleven wells. There is no certainty that the Company's option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.

Fort Dodge, Kansas

Mendell Helium is pleased to confirm that M3 Helium remains on track to commence de-watering of Rost this week. The final items of equipment required for operations, being the separator and triplex pump for the Brobee salt water disposal well ("Brobee SWD"), are being delivered in the coming days. M3 Helium's contractor is on site to take delivery and make the necessary connections between Rost and Brobee SWD.

Once everything is in place, de-watering will commence immediately.

During the past week, the final parts for the on-site pressure swing adsorption ("PSA") unit to purify the produced helium have also been delivered. Preparations for commissioning have commenced and will continue during the de-watering phase.

Furthermore, the Bauer compressor, which will be used to load tube trailers with gas from Rost, is now scheduled to arrive this week, several days ahead of schedule. As previously announced, M3 Helium has identified an off-taker prepared to receive the raw gas from the well. As the de-watering of Rost progresses and gas production starts to come through, management will be able to assess whether it will be economic to ship a 5.1 per cent. helium mix to the off-taker's site. Once connected, the PSA is expected to purify the helium composition to around 75 per cent. of the resultant gas mix. However, M3 Helium will deliver the raw gas pending that connection if feasible to do so.

Nebraska

Operations at the Jasper well have been more frustrating. Unfortunately the commencement of drilling coincided with wet weather in the area which caused delays and this was compounded by a faulty pump which was not clearing the drill cuttings sufficiently quickly. The problem with the pump was a small leak in the internal liner and, consequently, it was not immediately diagnosed. The drilling team will return this week with repaired equipment and will assess whether the stability of the wellbore has been compromised by the earlier operations. If necessary, a conductor will be inserted into the wellbore - this is a large-diameter casing string which is installed to provide structural support for loose surface formations.

Although these events will extend the time for drilling operations on Jasper, they are not indicative of the potential success of the operation and M3 Helium's management continue to be optimistic about the overall project.

Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: "The hard work on Rost is reaching a conclusion and the M3 Helium team will shortly be commencing de-watering of the well. With the commissioning of the PSA already underway and an off-taker prepared to receive raw gas from Rost, it is reasonable to conclude that helium sales may be not far away. We have spoken several times about the importance of Rost and its capability to generate revenue so it would be an understatement to say these next few weeks are going to be very exciting.

"Operations in Nebraska have been more frustrating and M3 Helium has been unfortunate with weather delays and faulty equipment. However, the team have been quick to address the problem and operations will be back underway this week."

Overview of M3 Helium

Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium's shareholders. The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.

The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas. It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day. M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium. The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.

The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.