Grand Gulf Energy Ltd - Well Pad Constuction Begins at Jesse-2

Grand Gulf Energy Ltd (ASX:GGE, OTCQB:GRGUF) ('Grand Gulf' or the 'Company') is pleased to advise well pad construction has commenced at the Jesse-2 well site in Utah. The works are expected to take approximately three weeks to complete. The site construction comes on the back of the Company receiving both the Jesse-2 permit to drill and the expansion of the Gas Sales & Processing Agreement (GSPA)1with Paradox Resources LLC (Paradox) to include the Jesse-2 well in in the GSPA in the event of success. Paradox is owner of the advanced Lisbon helium processing plant located 20 miles north of the Red Helium Project.

Managing Director Dane Lance Commented:

'The Company is excited to break ground on the potentially company-making Jesse-2 well. Coupled with the recent offtake agreement covering Jesse-2, Grand Gulf is well placed to capitalise on one of the world's most critically scare commodities with the ability to quickly monetise a commercial well with minimal time and cost.' This ASX announcement has been authorised for release by the Board of Grand Gulf Energy Ltd.

Contact:

Dane Lance

Managing Director

E: [e-mail]

About Grand Gulf Energy:

Grand Gulf Energy Ltd (ASX:GGE) is an independent exploration and production company, headquartered in Australia, with operations and exploration in North America. The Red Helium project is a pure-play helium exploration project, located in the Paradox Basin, Utah, in the prolific Four Corners region. For further information please visit the Company's website at www.grandgulfenergy.com

Helium Market -

Brief Update Sustained helium price pressure experienced in 2022 is expected to continue through 2023. The Bureau of Land Management (BLM) Cliffside facility in Texas is back online after a 6 month shutdown in 2022, however with limited reserves and quickly depleting (~10% global supply). The Russian Amur gas plant is still yet to produce helium after a devasting fire during commissioning at the start of 2022, potentially producing first helium in 2023 but with full ramp up delayed and further exacerbated by geopolitical tensions and the Ukraine/Russian war (potentially ~20-30% global supply). Other major supply sources such as Qatar have been historically unreliable, and Algeria has been diverting gas from LNG and helium production to Europe. With an ongoing structural supply deficit further compounded by the above factors, the market is still seeing increased high purity helium demand growth from multiple sectors including semiconductors and space, leading to extreme pressure on the global market, and in particular the US spot market. In 2022 the Company was advised of US spot prices in excess of US$2,000/mcf for research grade helium (160mcf tube trailer) and Paradox advised of purified gaseous helium sales exceeding $500/mcf. Spot prices increases represent a more than 300% rise over the last year and many suppliers in the US are still in Force Majeure, meaning they are rationing helium and cannot meet their supply contracts.

Competent Person's Statement:

The information in this report is based on information compiled or reviewed by Mr Keith Martens, Technical Director of Grand Gulf. Mr Martens is a qualified oil and gas geologist/geophysicist with over 45 years of Australian, North American, and other international executive oil and gas experience in both onshore and offshore environments. He has extensive experience of oil and gas exploration, appraisal, strategy development and reserve/resource estimation. Mr Martens has a BSc. (Dual Major) in geology and geophysics from The University of British Columbia, Vancouver, Canada.

Forward Looking Statements:

This release may contain forward-looking statements. These statements relate to the Company's expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like 'anticipate', 'believe', 'intend', 'estimate', 'expect', 'may', 'plan', 'project', 'will', 'should', 'seek' and similar words or expressions containing same. These forward-looking statements reflect the Company's views and assumptions with respect to future events as of the date of this release and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond our ability to control or predict. These include, but are not limited to, risks or uncertainties associated with the discovery and development of oil, natural gas and helium reserves, cash flows and liquidity, business and financial strategy, budget, projections and operating results, oil and natural gas prices, amount, nature and timing of capital expenditures, including future development costs, availability and terms of capital and general economic and business conditions. Given these uncertainties, no one should place undue reliance on any forward-looking statements attributable to GGE, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this release sets forth a fair and accurate view, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact:

Tel: [phone]

Web : www.grandgulfenergy.com

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