Royal Helium Ltd. and Sparrow Hawk Developments Ltd. announced that they have entered into an Economic Participation Agreement and a letter of intent for a $25,000,000 joint venture investment by Sparrow Hawk in the development of Royal's Val Marie helium project located in southwestern Saskatchewan. Under the terms of the Agreement and the LOI, Sparrow Hawk will invest $25,000,000 into the drilling and completion of new wells, as well as the construction of the associated helium purification facility. Pursuant to the LOI terms, Sparrow Hawk will have an approximate 57.5% non-operating working interest in the wells and an approximate 46% non-operating interest in the processing facility.

The partnership agreement will also see Sparrow Hawk support Royal's economic reconciliation strategy: Sparrow Hawk and Royal will work together to advance economic reconciliation in Treaty 4 territory and seek to create employment opportunities for Peepeekisis Cree Nation and First Nations people in Saskatchewan's growing helium sector. Sparrow Hawk and Royal commit to partnering on future helium opportunities in Saskatchewan as and when they materialize. Sparrow Hawk will engage First Nation's training organizations to provide Indigenous culture training and education opportunities to Royal and its subcontractors.

Sparrow Hawk will play a lead role in engaging other First Nation organizations and partners to work together on economic opportunities that may arise as a result of this partnership. The Agreement and LOI are subject to final financial arrangements, provincial, regulatory and TSX Venture Exchange approvals.