• The Steveville Helium Plant is Fully Funded
  

Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that binding commitment letters have been received and signed with the Business Development Bank of Canada ("BDC") and Canadian Western Bank ("CWB") acting pari passu for a non-revolving credit facility ("Credit Facility") in the amount of CAD $15 million (see news release December 21, 2022).  Proceeds of the Credit Facility will be used for the development and construction of production facilities currently under construction for the Steveville helium field in southern Alberta, Canada.

The commitment letter with CWB also includes a revolving CAD $2.5 million Demand Operating Loan ("Operating Line") to be used for working capital purposes. It is anticipated that the debt facilities will close in February when funds are expected to be drawn down. The facilities are subject to regulatory and exchange approvals.

Royal Helium also announces that following the receipt of the above commitment letters, the remaining conditions have been waived by the debenture holders to release from escrow the aggregate gross proceeds of CAD $5.5 million from the previously closed bought deal private placement of convertible debenture units (see news release of January 10, 2023).  The Company expects the release of funds from escrow and issuance of convertible debentures and warrants on or about February 10.

President and CEO Andrew Davidson states, "Securing debt facilities with two leading banking institutions in Canada is a significant milestone in the completion of our first helium production plant. It validates the feasibility and profitability of Royal's projects. We are grateful for the partnership support of senior lenders at CWB and the BDC and look forward to growing our relationship further with additional production facilities in the near future. Together with the early release of the convertible debentures, the Steveville helium production plant is now fully funded including the working capital required to see first production in the second quarter 2023."

Royal controls over 1,000,000 acres of prospective helium land across southern Saskatchewan and southeastern Alberta. All of Royal's lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land near existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity. Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas ("GHG") and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 99% less carbon intensive than helium extraction processes in other jurisdictions.

Contact:

please contact the Company: Andrew Davidson, President and CEO, Royal Helium Ltd., 1 (306) 653-2695, [email protected]; Dean Nawata, Manager of Corporate Development, Royal Helium Ltd., (604) 561-2821, [email protected]