Pulsar Helium Signs Term Sheet for Minnesota Land Acquisition

• Land Position: Acquisition of 59,100 gross acres in St Louis and Itasca Counties, Minnesota, west of existing Topaz project
• Scale Increase: Approximately 1,000% increase in gross Minnesota acreage upon transaction completion
• Share-Based Deal: All-share transaction valued at US$400,000 with no cash component, preserving working capital
• Geological Context: Acquired rights located in sedimentary basin with similar helium source rock characteristics to Topaz
• Option Structure: Initial 80% acquisition with option for remaining 20% within 18 months

Pulsar Helium Inc. (AIM: PLSR, TSXV: PLSR, OTCQB: PSRHF) develops helium projects with primary helium occurrences not associated with hydrocarbon production. The company holds exclusive leases in northern Minnesota through its Topaz project and operates the Tunu project in Greenland.

The company focuses on helium exploration and development in response to global helium demand. Pulsar holds first-mover positions in both operational locations, with identified helium occurrences confirmed through drilling and testing activities.

Strategic Acquisition and Land Expansion

The proposed acquisition involves Quantum Hydrogen Inc., which holds exclusive mineral rights for non-hydrocarbon gases across 59,100 gross acres in Minnesota. The acreage sits west of Pulsar's Topaz project in St Louis and Itasca Counties, expanding the company's regional footprint.

Recent testing at Topaz's Jetstream #1 appraisal well reached 5,100 feet depth in January 2025, penetrating the helium-bearing reservoir. Previous drilling identified helium concentrations up to 14.5%, above the 0.3% economic threshold. Flow testing in August 2025 delivered peak rates of approximately 1.3 million cubic feet per day.

The acquisition provides additional acreage proximal to existing operations while maintaining focus on Topaz development. A multi-well drilling campaign at Topaz is scheduled to commence in late September 2025 to further define the reservoir characteristics.

Transaction Structure and Terms

Pulsar signed a non-binding term sheet with Oscillate plc to acquire 80% of its subsidiary Quantum Hydrogen. The US$400,000 consideration will be paid through new Pulsar common shares issued in five monthly tranches of US$80,000 each over five months.

Share quantities for each tranche will be calculated using the 30-day volume-weighted average price prior to each issuance, subject to TSX Venture Exchange minimum pricing requirements. Pulsar retains rights to acquire the remaining 20% within 18 months for additional US$400,000 under identical terms.

The term sheet includes a 120-day exclusivity period for due diligence completion and definitive agreement execution. Only confidentiality, exclusivity, cost allocation, and governing law provisions are currently binding. Completion requires due diligence, regulatory approvals including TSXV acceptance, and potential shareholder consents.

Strategic and Geological Rationale

The mineral rights are located within a non-hydrocarbon-bearing sedimentary basin overlying Archaean crystalline basement, matching the helium source rock type at Topaz. While Topaz represents helium discovery within fractured basement, the new acreage offers conventional gas reservoir opportunities.

The geological model involves helium generated in basement granites migrating into overlying sedimentary reservoirs sealed by mudstone and siltstone units. Pulsar has developed technical knowledge in helium migration pathways, source-proximity relationships, and structural controls through Topaz operations.

CEO Thomas Abraham-James commented:

"The Assets will expand our helium exploration footprint in Minnesota by approximately 1,000%, providing us with additional acreage nearby to our flagship Topaz project, with similar geology that could potentially host helium accumulations. This all-share transaction would allow us to preserve our cash for advancing Topaz."

Next Steps and Implementation

The company will complete due diligence activities within the 120-day exclusivity period while negotiating definitive agreements. Regulatory approval processes, including TSXV acceptance, will proceed in parallel. The multi-well drilling campaign at Topaz remains scheduled for late September 2025 to advance reservoir definition and production planning.

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