Mendell Helium plc

("Mendell Helium" or the "Company")

Update on Fort Dodge and Nebraska operations

Mendell Helium is pleased to provide an update on M3 Helium Corporation's ("M3 Helium") Rost 1-26 well in Fort Dodge, Kansas ("Rost") and the Jasper well in Nebraska.

Highlights

·    Rost Well, Kansas: Preparations for de-watering are progressing, with first operations expected to commence in early September 2025.

·    Jasper Well, Nebraska: Operations are underway. Drilling  is expected to be completed by the end of August 2025. If successful, the Jasper Well may be able to support a future Bitcoin mining project.

As announced on 27 June 2024, the Company has an option (the "Option") to acquire M3 Helium, a producer of helium which is based in Kansas and holds an interest in eleven wells.  There is no certainty that the Company's option to acquire M3 Helium will be exercised, nor that the enlarged group will successfully complete a re-admission. As announced on 23 June 2025, the Company and M3 Helium have agreed to extend the date on which the Option should be exercised to 30 September 2025.

Fort Dodge, Kansas

The four water tanks which are to be positioned between Rost and the Brobee salt water disposal well ("Brobee SWD") have arrived on site and the catwalk between them has been installed. The remaining items of major equipment are the triplex pump for the Brobee SWD and the separator and knock-out (which together separate any liquids from the gas stream). These are anticipated to be delivered either during next week or by early September 2025.

With delivery times confirmed and the larger items already in place, M3 Helium continues to expect de-watering operations to commence in the first half of September 2025.  The project overall remains under budget.

Once Rost is operational, M3 Helium will connect the pressure swing adsorption ("PSA") unit that is already on site which will purify the produced helium.  The most efficient level of purity will be determined once production begins but, as a guide, M3 Helium is expecting to ship helium at around 75 per cent. purity.  M3 Helium has secured delivery of a Bauer compressor, expected on site in mid-September 2025, which will be used to load tube trailers with gas from Rost. 

A significant advantage of Rost is that its helium composition has been tested at 5.1 per cent. and furthermore, with 85 per cent. nitrogen, hydrocarbon levels are low.  M3 Helium has identified an off-taker prepared to receive the raw gas from the well and management are currently assessing whether it will be economic to ship a 5 per cent. helium mix to the off-taker's site. On the basis that it is, M3 Helium may be in a position to commence helium sales before the PSA has been connected.

Nebraska

Mendell Helium is also pleased to confirm that operations have commenced at the Jasper well.  In line with M3 Helium's policy of tight cost management, a small amount of casing was sourced from another discontinued operation which will further assist in what is already a low budget project.

At less than 2,000 feet in depth, testing of the Jasper well, including lease acquisition and drilling costs, is expected to cost less than US$100,000.  M3 Helium continues to expect drilling to complete by the end of August 2025 and the results of this exercise will determine the location's suitability for Bitcoin mining.

During the onsite preparations, the path of a fibre optic cable was found to be just a few yards from the lease boundary, which, if it can be easily accessed, will enhance the location's appeal for a Bitcoin mining operation.

Nick Tulloch, Chief Executive Officer of Mendell Helium and Chairman of M3 Helium, said: "In what has been a very busy week for M3 Helium, it is pleasing to report that M3 Helium remains on track for the two ongoing projects in Kansas and Nebraska.  The logistical exercise of assembling the final surface equipment for Rost is coming together and timings for the Jasper well are just as planned.  We are entering a very exciting time for M3 Helium, and I look forward to providing updates on the projects."

ENDS

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This announcement contains inside information for the purposes of the UK Market Abuse Regulation and the Directors of the Company are responsible for the release of this announcement.

Enquiries:

Overview of M3 Helium

Mendell Helium announced on 27 June 2024 that it has entered into an option agreement to acquire the entire issued share capital of M3 Helium through the issue of 57,611,552 new ordinary shares in Mendell Helium to M3 Helium's shareholders.  The exercise of the option will constitute a reverse takeover pursuant to AQSE Rule 3.6 of the Access Rule Book and is subject to, inter alia, publication of an admission document.

M3 Helium has interests in ten wells in South-Western Kansas of which five (Peyton, Smith, Nilson, Bearman and Demmit) are in production.  Eight of the company's wells are within the Hugoton gas field, one of the largest natural gas fields in North America.  Significantly these wells are in the proximity of a gathering network and the Jayhawk gas processing plant meaning that producing wells can quickly be tied into the infrastructure.

The ninth well, Rost, is in Fort Dodge, just to the east of Dodge City, Kansas.  It was tested in July 2024 as containing 5.1% helium composition and a previous drill stem test yielded a maximum flow rate of approximately 2,900 Mcf per day.  M3 Helium owns a mobile Pressure Swing Adsorption production plant which has been installed on site and will be used to purify the produced helium.  The plant is capable of processing up to 800 Mcf per day of raw gas and purifying it up to 99.999% helium.

The tenth well, Brobee, is a disposal well that has been authorised at 5,000 barrels of water per day at 1,200 psi.

M3 Helium is also developing a Bitcoin mining operation in Nebraska where it has taken a lease of land prospective for biogenic methane and is drilling a pilot well (Jasper).  It is onboarded for custody with Bitgo Inc. and its Bitcoin treasury management policy is available at https://mendellhelium.com/bitcoin-treasury.

Important Notices

Mendell Helium plc (the "Company") intends in the future to hold treasury reserves and surplus cash in bitcoin. Bitcoin is a type of cryptocurrency or crypto asset. Whilst the Board of Directors of the Company considers holding bitcoin to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK (the "Financial Conduct Authority" or "FCA") considers investment in bitcoin to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in bitcoin, either directly or by proxy. However, the Board of Directors of the Company consider bitcoin to be an appropriate store of value and growth for the Company's reserves and, accordingly, the Company may in the future be materially exposed to bitcoin. Such an approach is innovative, and the Board of Directors of the Company wish to be clear and transparent with prospective and actual investors in the Company on the Company's position in this regard.

The Company is neither authorised nor regulated by the FCA and cryptocurrencies (such as bitcoin) are unregulated in the UK. As with most other investments, the value of bitcoin can go down as well as up, and therefore the value of bitcoin holdings can fluctuate. The Company may not be able to realise any future bitcoin exposure for the same as it paid in the first place or even for the value the Company ascribes to bitcoin positions due to these market movements. As bitcoin is unregulated, the Company is not protected by the UK's Financial Ombudsman Service or the Financial Services Compensation Scheme.

Nevertheless, the Board of Directors of the Company has taken the decision to invest in bitcoin, and in doing so is mindful of the special risks bitcoin may in the future present to the Company's financial position. These risks include (but are not limited to): (i) the value of bitcoin can be highly volatile, with value dropping as quickly as it can rise. Investors in bitcoin must be prepared to lose all money invested in bitcoin; (ii) the bitcoin market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell bitcoin at will. The ability to sell bitcoin depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) crypto assets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. In addition, there is a perception in some quarters that cyber-attacks are prominent which can lead to theft of holdings or ransom demands. The Board of Directors of the Company does not subscribe to such a negative view, especially in relation to bitcoin. However, prospective investors in the Company are encouraged to do their own research before investing.