Pulsar Helium Doubles Topaz Project Acreage to Scale Up Helium Production Potential in Minnesota

• Pulsar Helium has increased its net land position at the Topaz Helium Project in Minnesota by approximately 100%, expanding from 2,089 to 4,181 net acres.
• The expansion follows a successful resource evaluation and the drilling of the Jetstream #1 Helium Well, indicating strong potential for the project.
• Pulsar is actively pursuing additional acreage to secure district-wide control of what it believes to be a newly emerging helium reservoir with regional scale.
• The company plans to deepen the Jetstream #1 well, assess drilling step-out wells, and complete additional seismic studies to enhance understanding of the dual-commodity project.
• Pulsar is positioning itself to capitalize on strong domestic demand for both helium and CO2, with the project showing no significant environmental or logistical barriers to commercialization.

Pulsar Helium Inc. (TSXV:PLSR) is a publicly traded helium development company with a portfolio focused on primary helium occurrences. The company's flagship Topaz helium project is located in Minnesota, USA, with an additional project, Tunu, situated in Greenland. As a first mover in both locations, Pulsar has identified primary helium occurrences not associated with hydrocarbon production, setting it apart in the helium exploration sector. With a commitment to responsible resource development and a keen eye on emerging market demands, Pulsar Helium is positioning itself as a key player in the growing helium industry.

Topaz Project Expansion: Strategic Move in Helium Development

In a significant move that underscores its confidence in the Topaz Helium Project, Pulsar Helium Inc. has announced a substantial increase in its land position. The company has nearly doubled its net acreage, expanding from 2,089 to 4,181 acres. This strategic expansion follows the successful drilling of the Jetstream #1 well and the release of an independent resource report that highlighted the project's existing helium resource with high concentration and upside potential.

The terms of the new leases are particularly favorable for long-term development. After an initial 5-year lease extension, any developed tract can be further extended as long as the Topaz Project continues producing gas. This provision allows Pulsar to maintain control over productive areas without the pressure of short-term lease expirations, providing stability for future operations.

Resource Evaluation

The decision to expand the land position was not made lightly. It was driven by the positive results from existing data and the Sproule resource report, which emphasized the helium resource of one prospect in the area. Thomas Abraham-James, President & CEO of Pulsar, commented on the expansion, stating,

"Based on existing data demonstrating the continuity of the system, along with the Sproule resource report, which highlighted the helium resource of one prospect in the area, we believe the Topaz Project has district size scalability."

This assessment suggests that the Topaz Project may have potential far beyond its current known resources, justifying the aggressive land acquisition strategy. By securing additional acreage, Pulsar is positioning itself to control what it believes could be a regionally significant helium reservoir.

Pursuing State Leases and Further Acquisitions

Pulsar's ambitions for the Topaz Project extend beyond the recent expansion. The company is actively pursuing additional acreage through a newly legislated State leasing process. This development is particularly noteworthy as it marks the first time the State of Minnesota has allowed mineral rights leasing for helium, indicating growing recognition of the resource's importance.

The support from state agencies, including the Minnesota Department for Natural Resources and the Department of Iron Range Resources & Rehabilitation, adds credibility to the project. Their recent visit to the Topaz Project and expressed enthusiasm for its advancement highlight the potential positive economic impact on local and regional areas.

Next Steps and Future Prospects

Deepening Jetstream #1 and Resource Update

With the expanded land position secured, Pulsar is not resting on its laurels. The company has outlined an ambitious plan to accelerate the development of the Topaz Project. A key component of this plan is the deepening of the Jetstream #1 well by approximately 500 meters. This step is crucial as it aims to intersect the full anticipated height of the reservoir.

The potential impact of this deepening on the project's resources is significant. The recent Sproule Prospective resource statement estimated 2.8 Bcf Helium (P10) and 21.3 Bcf CO2 (P10) gross gas recoverable. These figures were calculated prior to the planned deepening, suggesting that the actual resources could be substantially higher once the full reservoir is accessed.

Seismic Surveys and Step-Out Wells

To further ascertain the true scale of the Topaz Project, Pulsar plans to acquire additional seismic surveys. This data will be crucial in mapping out the extent of the helium-bearing formations and identifying the most promising locations for future wells.

In addition to seismic work, the company is assessing the potential for drilling step-out wells. These wells would serve to delineate the boundaries of the helium reservoir and potentially increase the project's overall resource base. The combination of deepening existing wells, conducting new seismic surveys, and drilling step-out wells demonstrates a comprehensive approach to fully evaluating and developing the Topaz Project.

Market Dynamics and Demand for Helium

One of the key factors driving Pulsar's aggressive development strategy is the strong domestic demand for helium in the United States. Helium is a critical resource for various high-tech industries, including medical imaging, semiconductor manufacturing, and aerospace applications. With limited domestic sources and increasing global competition for helium resources, projects like Topaz take on strategic importance for US industry.

The company's focus on developing a primary helium resource not associated with hydrocarbon production is particularly noteworthy. This approach aligns with growing environmental concerns and the push for cleaner resource extraction methods.

CO₂ as a Valuable By-Product

An interesting aspect of the Topaz Project is the presence of significant CO₂ resources alongside the helium. While CO₂ is often viewed as a greenhouse gas in many contexts, in this case, it represents a potentially valuable by-product. CO₂ has various industrial applications, including enhanced oil recovery, food and beverage production, and dry ice manufacturing.

The dual-commodity nature of the Topaz Project could enhance its economic viability, providing Pulsar with multiple revenue streams and potentially offsetting some of the development costs associated with helium production.

New Legislation Favoring Helium Development

The recent passage of legislation in May 2024 allowing the State of Minnesota to lease mineral rights for helium extraction for the first time is a game-changer for Pulsar. This new regulatory framework provides a clear path for the company to expand its operations and secure additional resources through state leases.

The support from state agencies and the recognition of the project's potential positive economic impact underscore the favorable regulatory environment. This alignment between corporate goals and state interests could streamline future permitting processes and facilitate the project's development.

The Topaz Project's potential extends beyond resource extraction to significant economic benefits for the local and regional communities. The development of a new helium industry in Minnesota could create jobs, stimulate local businesses, and provide tax revenue for the state and local governments. Pulsar's engagement with state agencies and emphasis on the project's positive economic impact suggest a commitment to responsible development that considers community interests. This approach could be crucial in maintaining local support and ensuring the long-term sustainability of the project.

Financial Considerations and Market Position

While the press release does not provide specific details on the financial aspects of the expansion and development plans, investors should consider the capital requirements for such an ambitious project. The costs associated with deepening wells, conducting seismic surveys, and potentially drilling new step-out wells can be substantial.

Pulsar's listing on both the TSX Venture Exchange and the OTCQB market provides access to capital markets, which could be crucial for funding future development. The company's ability to secure necessary financing on favorable terms will be a key factor in realizing the full potential of the Topaz Project. As Pulsar advances the Topaz Project and potentially increases its resource base, investors may see an impact on the company's market valuation. The helium market's dynamics, with limited new sources coming online and strong demand from high-tech industries, could position Pulsar favorably if it can successfully bring the Topaz Project into production.

Conclusion: A Promising Horizon for Pulsar Helium Investors

For investors looking at Pulsar Helium, the recent developments at the Topaz Project present an intriguing opportunity in the specialty gas sector. The company's strategic expansion of its land position, backed by positive resource evaluations and supportive regulatory changes, positions it well to capitalize on the growing demand for helium.

Key factors for investors to consider include:

1. The potential for significant resource growth as the company deepens existing wells and explores the full extent of the helium reservoir.
2. The dual-commodity nature of the project, with both helium and CO2 presenting revenue opportunities.
3. The favorable regulatory environment in Minnesota and strong community support for the project.
4. The company's first-mover advantage in a newly accessible helium province.
5. The critical importance of helium to various high-tech industries and the limited number of new sources coming online globally.

While the project is still in the development stage and carries the risks associated with resource exploration and production, Pulsar's aggressive yet methodical approach to expanding and de-risking the Topaz Project suggests a company with a clear vision for growth. As the company progresses through its next phases of development, including deepening the Jetstream #1 well and conducting further seismic studies, investors should watch for updates on resource estimates and production timelines.

Pulsar Helium's expansion at the Topaz Project represents a significant step in its journey to become a key player in the North American helium market. For investors seeking exposure to the critical materials sector, particularly in gases essential to high-tech industries, Pulsar Helium presents an opportunity worth monitoring closely as it advances its flagship project toward production.