Blue Star Helium Limited provided an update on the progress of its key helium exploration activities in Las Animas County, Colorado. Highlights: Helium concentration of 2.14% in larger than expected gas column in the Lyons formation at JXSN#3. Flow rates consistent with data reported from the historic Model Dome field. Four (4) helium well drilling applications currently pending COGCC approval as immediate follow-ups to the Galactica/Pegasus discoveries.

A further 29 helium wells for Galactica/Pegasus currently in various stages of the permitting pipeline. Sproule currently upgrading Galactica/Pegasus resource estimates, with a declaration of at least contingent resources expected. Consulting engineers, SIGIT, currently preparing a plan of development for Blue Star's Las Animas acreage, including front-end engineering and design studies on processing facilities at Voyager and Galactica/Pegasus.

Recent exploration results: Blue Star has recovered high concentrations of helium from each of the JXSN#1, JXSN#2 and JXSN#3 exploratory water wells drilled in the Company's Galactica/Pegasus prospects. Blue Star declared a discovery at each of these wells (see BNL ASX announcement dated 17 May 2022). Helium Concentrations: Samples most representative of the reservoir gas were selected for air-free calculation and normalisation yielding 1.98% helium at JXSN#1 (nitrogen 23.9%, CO2 74.13%); 3.14% helium at JXSN#2 (nitrogen 22.76%, CO2 74.10%) and 2.14% helium at JXSN#3 (nitrogen 42.50%, CO2 55.36%).

Flow Rates: As previously announced, initial flow rates exceeding 400 mcfd is a very strong result and consistent with data reported from the historic Model Dome field. The wells were drilled by the rancher as water wells. Consequently, they were not cased to the Lyons formation as the Company would have done if it were drilling a helium appraisal and development well.

Moreover, the wells were deliberately drilled into the underlying water which will have reduced potential pressure and flow rates from the wells. The open borehole above the Lyons formation is also likely to have reduced certainty around pressure and flow data. Observations while drilling showed that the formations in open hole above the Blaine formation seal (just above the Lyons formation) are prone to washout and instability, this was particularly the case while drilling JXSN#2. These conditions are likely to negatively affect later pressure and flow tests form the wells.

Dedicated appraisal and production wells are to be completed in the gas column in order to maximise flow rates, which are therefore naturally expected to be higher on an equivalent basis. Gas Columns: JXSN#1- Analysis of the log data has confirmed intersection of the top of the Lyons formation at 1,187 ft depth, with wireline logs confirming a gas column in high quality reservoir from the top of the Lyons formation to a depth of 1,404.5 ft (217.5 ft gas column) across the upper and lower Lyons sands (gross thickness 261 ft). Gross sand across both the upper and lower Lyons sands is 164 ft with net pay in the well of 143.5 ft.

The well TD'ed at 1,456 ft in the lower Lyons formation. JXSN#2: Analysis of the log data has confirmed intersection of the top of the Lyons formation at 1,123 ft depth, with wireline logs confirming a gas column in high quality reservoir from the top of the Lyons formation to a depth of 1,224 ft (101 ft gas column, gas down to) within the upper Lyons sand. The upper and lower Lyons sand interval is 191 ft thick with gross sand across both the upper and lower Lyons sands being around 150 ft.

Net pay in the well in the upper Lyons sand with gas down to base of the sand at 1,224 ft is 101 ft. The well TD'ed at 1,321 ft in the lower Lyons formation. JXSN#3: Analysis of the log data has confirmed intersection of the top of the Lyons formation at 1,152 ft depth, with wireline logs confirming a gas column in high quality reservoir from the top of the Lyons formation to a depth of 1,382 ft (230 ft gas column) across the upper and lower Lyons sands (gross thickness 274.5).

Gross sand across both the upper and lower Lyons sands is 198 ft with net pay in the well of 153.5 ft. The well TD'ed at 1,454 ft in the lower Lyons formation. Plan of Development and FEED, further resource assessment: As previously announced, Blue Star recently appointed consulting engineers, SIGIT, to prepare a plan of development including Front-End Engineering and Design (FEED) for an initial processing facility at the Voyager prospect.

SIGIT is now set to also prepare a FEED for a second processing facility at the Galactica/Pegasus/Serenity prospects. As previously announced, the Company has also engaged independent geological and engineering consultant, Sproule, to update the Galactica/Pegasus resource estimate. This is expected to result in the declaration of at least contingent resources for Galactica/Pegasus.

In addition, Sproule has been engaged to prepare the first independent resource assessment for the Voyager prospect. Blue Star's current Las Animas P50 net unrisked prospective helium resource of 13.4 Bcf does not include an estimate for the Voyager prospect. Helium Appraisal and Development Wells: These exploratory water wells were strategically planned to front run helium exploration, appraisal, and production drilling at the Galactica/Pegasus prospects, where there are 4 helium well drilling applications set for approval hearing on 19 July 2022 as immediate follow ups to these discoveries.

A further potential 29 helium exploration well locations at Galactica/Pegasus are in the permitting pipeline. Further details are set out in the Appendix. The water wells are drilled by a contractor pursuant to a drilling contract between the contractor and the rancher.

Neither the Company nor its subsidiaries are a party to this contract. The well is the property of the rancher and the Blue Star group does not have an economic interest in it. The Company will agree to fund water wells if the rancher selects a location that may be of interest to the Company, the Company has leased the underlying minerals and the rancher agrees to let the Company obtain any available data from the drilling program.

Water wells are drilled for the purpose of producing water for use by the rancher. Water wells may not produce helium and may not be converted into producing helium wells.