Royal Helium Announces $6 Million Bought Deal Public Offering of Units for Drilling of High-Impact Appraisal Well at 40 Mile and Continued Advancement in Saskatchewan Helium Corridor

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SASKATOON, Saskatchewan, April 24, 2024 (GLOBE NEWSWIRE) -- Royal Helium Ltd. (TSXV:RHC) (OTCQB:RHCCF) ("Royal" or the "Company") is pleased to announce that it has entered into an agreement with Research Capital Corporation as the lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters has agreed to purchase, on a bought deal basis, 66,667,000 units of the Company (the “Units”) at a price of $0.09 per Unit for aggregate gross proceeds to the Company of $6,000,030 (the "Offering").

Each Unit shall be comprised of one common share of the Company (a "Common Share") and one Common Share purchase warrant of the Company (a "Warrant"). Each Warrant shall entitle the holder thereof to purchase one Common Share at an exercise price of $0.12 per Common Share for a period of 36 months following closing of the Offering. In addition, the Company will use commercial reasonable efforts to obtain the necessary approvals to list the Warrants on the TSX Venture Exchange (“Exchange”).

The net proceeds from the Offering will be used for new high-impact drilling on the 40 Mile project in southern Alberta, development through the Saskatchewan helium corridor, completion and testing of an existing discovery at the Ogema project, working capital and general corporate purposes. See below for project details.

The Company has granted to the Underwriters an option (the “Over-Allotment Option”) to increase the size of the Offering by up to an additional number of Units, and/or the components thereof, that in aggregate would be equal to 15% of the total number of Units to be issued under the Offering, to cover over-allotments, if any, and for market stabilization purposes, exercisable at any time and from time to time up to 30 days following the closing of the Offering.

The closing of the Offering is expected to occur on or about May 1, 2024 (the “Closing”), or such other earlier or later date as the Underwriters may determine. Closing is subject to the Company receiving all necessary regulatory approvals, including the approval of the Exchange to list, on the date of Closing, the Common Shares, and the Common Shares issuable upon exercise of the Warrants and the Underwriters’ broker warrants, on the Exchange.