Imperial Helium Announces Spud of Initial Well

6 July 2021

Cloudbreak Discovery PLC

("Cloudbreak" or the "Company")

Imperial Helium Announces Spud of Initial Well at Steveville Property

Cloudbreak Discovery PLC (LSE: CDL), a natural resource project generator, is pleased to announce that Imperial Helium Corp. ("Imperial") in which Cloudbreak owns 1.25 per cent of the issued and outstanding equity, has spud IHC Steveville 1 at 102/03-01-020-12W4M, Imperial Helium's first well on its Steveville Helium Property, located in Southeastern Alberta, on schedule.

IHC Steveville 1 is the first of two appraisal wells Imperial Helium plans to drill on the Steveville structure. This first well targets the crest of the Steveville structure. With surface casing set, the rig will drill forward and set intermediate casing in the Stettler Formation, before continuing to a target depth of 2,047 metres. Upon reaching the target objective, a comprehensive suite of well logs will be acquired and evaluated, before completing the well and proceeding with production testing.

Kyler Hardy, CEO of Cloudbreak Discovery, commented: "This is a very positive step for Imperial Helium at Steveville and the team should be incredibly pleased to have reached this milestone. I look forward to working with them on this project as they work to establish the resource available."

David Johnson, Director and CEO of Imperial Helium, commented: "We are incredibly pleased to spud our first well and have the drill-bit smoothly turning to the right. We look forward to providing shareholders with future updates regarding both well results and those other value-creating initiatives that are planned to follow drilling."

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended).

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About the Steveville Helium Property

Imperial Helium's Steveville property is situated over a large basement dome feature with four-way closure. The property is approximately 200 kilometres ("km") east of Calgary and 40 km northeast of Brooks where highways 544/876 cross the structure, providing easy access for drilling and development. The property includes land leased from Heritage Royalty Resource Corporation covering 24,635 hectares (95 square miles), with rights for natural gas, including helium, below the base of the Big Valley and Nisku formations.

In the winter of 1940, the first deep well to be drilled in the area was 13-22-020-12W4, which, owing to a mechanical failure on surface, resulted in the Steveville blow-out. The blow-out is estimated to have flowed at 50 million cubic feet per day ("MMcf/d") for 100 days. After the well was brought under control, drilling resumed followed by production testing which came in at six MMCf/d of non-burnable gas (87 per cent nitrogen; 0.63 per cent helium). Subsequent wells 14-11-020-11W4, 16-11-020-12W4, and 01-24-020-11W4, which were drilled in 1953, 1974 and 2002, respectively, confirm the structure. Imperial Helium has acquired seismic data to provide an improved understanding of the basement structure and select drilling locations.

About Cloudbreak

Cloudbreak Discovery PLC is a leading natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak's generative model enables a multi asset approach to investing. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing.  

About Imperial Helium

Imperial Helium is focused on the exploration and development of helium assets in North America.  Driven by Canadian geoscience and engineering expertise, in combination with their proprietary helium well database, Imperial Helium is developing its asset base to meet the growing global helium demand and supply shortfalls in the market.

Forward-Looking and Cautionary Statements

Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "will" or similar words suggesting future outcomes or statements regarding an outlook. Forward-looking information in this press release may include, but is not limited to, statements concerning: the exercise of the Company's option under the Lease Agreement; drilling activities; discovery activities including re-discovering and capturing the Steveville blow-out; activities pursuant to the Strategic Alliance Agreement; the satisfaction of the Escrow Release Conditions and the business plan of the Company, generally, including helium development and extraction. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Imperial. Although Imperial believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Imperial can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the helium industry in general (e.g., operational risks in development, exploration and production; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), constraint in the availability of services, commodity price and exchange rate fluctuations, the current COVID-19 pandemic, changes in legislation impacting the helium industry, adverse weather or break-up conditions and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.

The forward-looking information contained in this press release is made as of the date hereof and Imperial undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement.