Pulsar Helium Advances Minnesota Rare Gas Hub Plans With Two Harbors Land and Development Agreement

• The Two Harbors City Council has approved a Purchase and Development Agreement dated October 14, 2026, with Pulsar’s wholly owned subsidiary, Pulsar Helium MN, Inc.
• Land appraised at US$143,200 within an existing industrial district would be acquired for US$1.00, subject to closing conditions and approvals.
• The City would contribute up to US$1 million toward rail construction and cover site clearing, utility extensions, surveying and wetland mapping.
• Pulsar would be reimbursed 90% of the increase in the City’s share of property taxes from the initial phase for 15 consecutive years.
• Pulsar has 365 days to complete due diligence before deciding whether to formally commit to the project.

Pulsar Helium Inc. (AIM: PLSR, TSXV: PLSR, OTCQB: PSRHF) is a Canada-based helium company focused on primary helium, meaning helium that occurs on its own rather than as a by-product of oil and gas production. Its portfolio includes the flagship Topaz helium project in Minnesota, the Falcon project in Michigan and the Tunu helium project in Greenland. Pulsar was the first to identify primary helium occurrences in each of these locations.

Two Harbors Industrial Site Offered for US$1.00 With a 365-Day Review Period

The agreement between the City of Two Harbors and Pulsar Helium MN sets out the framework for acquiring land within the City’s Limited Industrial I-1 district for US$1.00. Final boundaries will be set by a survey approved by both parties before closing. Pulsar plans to develop the site as a Rare Gas Hub for processing helium and other rare gases, including helium liquefaction (cooling the gas into a liquid for storage and transport) and carbon capture.

Two Harbors, the county seat of Lake County, sits on Lake Superior with access to Canadian National Railway’s main line, deep-water port facilities and regional highways. 

Director and CEO Thomas Abraham-James said:

“The City Council’s approval is an important step forward in our strategy to build a Rare Gas Hub that strengthens the U.S. supply chain for rare gases. Two Harbors’ industrial location and transportation infrastructure offer a strong foundation for this proposed facility. We look forward to working with the City on the financing, engineering, utility arrangements and remaining approvals needed before we commit to construction.”

The 365-day due diligence period began on October 14, 2026. Pulsar may issue a Project Commitment Notice once the applicable conditions are met or waived, with closing to follow within 10 business days. If no notice is issued, either party may end the agreement without penalty, and City spending before commitment is at the City’s risk unless Pulsar agrees in writing to reimburse it. Once committed, Pulsar must bring the initial phase into commercial operation within 36 months, subject to permitted extensions, while later expansion phases are optional.

City Support Covers Land, Rail, Utilities and Property Taxes

The City’s participation begins with the land sale, transferring a property appraised at US$143,200 for US$1.00. The City would also contribute up to US$1 million toward a rail spur or siding, a short track connecting a site to a main rail line, with Pulsar paying any costs above that amount. The City would keep permanent rights to use the rail service for municipal purposes and to offer it to other customers for a fee.

The City would also clear the building site and road corridor, extend municipal water, sewer, natural gas and electrical service to the site, and fund surveying and wetland delineation (mapping the boundaries of any wetlands on the property). Cost estimates for this work will be finalised in a Business Subsidy Agreement. The US$1 million rail contribution is not a cap on total City assistance, the full value of which is yet to be determined.

The agreement includes a property tax abatement, which is a partial refund of taxes paid. The City would reimburse 90% of the increase in its share of property taxes paid on the completed initial phase for 15 consecutive tax years. The abatement would begin only after commercial operation, issuance of the City’s completion certificate and payment of the qualifying taxes. Pulsar will seek separate abatements from Lake County and the Lake Superior School District.

Financing, Utilities, Zoning and Rail Access Before Construction Commitment

Before closing and formal commitment, Pulsar must complete property and environmental due diligence, surveys and wetland review, and secure acceptable project financing. Supporting agreements must also be executed, covering the business subsidy, tax abatement, minimum assessment (a set floor on the property’s taxable value), electrical service, natural gas service and rail.

Electrical capacity, reliability, rates and service dates will be settled through engineering studies and service agreements acceptable to Pulsar. The City must approve required zoning amendments, site and construction plans and permits, and rail access arrangements and approvals involving Canadian National Railway are also required. Final plans will include a substantial tree and vegetation buffer along the site’s western and southern boundaries.

The site is intended to house the helium liquefaction and carbon capture plant that Pulsar is sourcing from Chart Energy & Chemicals, Inc., a wholly owned subsidiary of Baker Hughes Company, under an Equipment Reservation Letter Agreement and Limited Notice to Proceed. Securing financing for the plant acquisition remains a key near-term priority.

Milestones and Next Steps

The due diligence period runs to October 2027, during which Pulsar will work towards plant financing, the City supporting agreements and the remaining approvals, including TSX Venture Exchange approval if required. Delivery of a Project Commitment Notice would trigger closing of the land purchase and start the timeline towards commercial operation of the hub’s initial phase.

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