Helium One Regulatory News (HE1)

29 March 2021

HELIUM ONE GLOBAL LIMITED

("Helium One" or the "Company")

Unaudited Interim Results for the Six Months ended 31 December 2020

Helium One Global Limited (AIM:HE1), the helium exploration and development company, is pleased to announce its results for the six months ended 31 December 2020 as well as provide an update on the Company's progress on its projects in Tanaznia post the half year end.

Highlights

· Successful listing on AIM on 4th December 2020

· Ovesubscribed £6 million fundraising, fully funding the Company's initial exploration programme

· Exploration programme commenced on the Company's helium projects in Tanzania

· Infill seismic campaign in our Rukwa license area is successfully underway

· Drilling contract signed with Mitchel Drilling with drilling scheduled to commence in mid-May on Rukwa

· Strengthened in-house technical capabilities with the appointment of Lorna Blaisse as Principal Geologist 

· Net cash balance as at 31 December 2020 of $6,584,886 (31 December 2019: $577,997)

Ian Stalker, Chairman of Helium One commented:

"This has been an incredibly exciting time for Helium One. In the period under review we completed our listing on AIM and also secured finance for our aggressive exploration programme.

"We are now delivering this programme which is advancing at pace and on budget. The infill seismic data that is being acquired is the last stage prior to definining the optimal drill locations for our drilling campaign, expected to commence in mid-May. With the upgraded drill rig supplied by Mitchell Drilling, we have the operational flexibility to move straight from exploration to appraisal, further fast tracking the operations whilst saving considerable money.

"We believe our current campaign has the protential to show that Rukwa is a clean sustainable project with significant global implications in a supply constrained helium market. We look forward to providing further updates as our programme progresses."

For further information please visit www.helium-one.com or contact:

Chairman's Statement

The period under review, as well as that post period end, has been incredibly active and transformational for Helium One. We completed our AIM listing providing the funds for the Company to embark upon its aggressive exploration programme leading to our maiden drilling campaign which, as we recently announced, is due to commence in mid-May.

Helium One was admitted to AIM on 4th December 2020, following the amalgamation with Attis Oil and Gas and the successful oversubscribed fundraise of £6 million. The funds raised on admission to AIM means the Company is fully funded for its initial exploration programme which commenced this year and which will help the Company prove up what we believe is an asset that has strategically global implications and the ability to assist with the supply of the world's helium demand for a number of years going forward.

Rukwa Project (Helium One 100%)

The Rukwa Project, Helium One's main project, is located within the Rukwa Rift Basin covering 3,448km2 in south-west Tanzania. The project is considered to be an advanced exploration project and the Company has identified 21 prospects and four leads based on historical drilling, reprocessed seismic lines, high resolution gravity survey, and surface seeps analysis.

On 11th January 2021 Helium One submitted an Environmental and Social Impact Assessment ("ESIA") for its proposed drilling programme at Rukwa Project to the National Environment Management Council ("NEMC") of the Tanzanian Government. Helium One commenced Environmental and Social Impact Assessment activities in August 2020 to ensure the Company exceeded the minimum requirements of NEMC. The ESIA is a key document in securing environmental permits for exploration drilling and is an important milestone towards Helium One's maiden exploration drilling campaign. The study covers a project area of 310km2 in three prospecting licences (PL10712/2015, PL10713/2015 and PL10727/2015) and includes environmental and social baseline studies, impact assessments and mitigation measures. We look forward to receipt of the permits ahead of the drilling campaign.

On 18th February 2021 the Company announced the commencement of its infill seismic campaign with mobilisation of survey and line clearing crews to the Rukwa Project; with the acquisition of data commencing a month later on 16 March 2021. This campaign consists of approximately 150km of infill seismic acquisition targeting shallow trap structures identified from the interpretation of historic seismic and recent gravity gradient data. Interpreted seismic data will define optimal well locations and reduce risk in drill targeting. This campaign will provide the final technical input prior to commencement of Helium One's maiden drilling campaign. Close spaced seismic data acquisition will be focussed in areas of known prospectivity to assist in providing greater clarity on the subsurface structures which Helium One believe have the highest chances of successfully discovering Helium. The seismic campaign is fully permitted and benefits from community and governmental support.

The Company have also secured a drilling rig for its maiden three well programme as announced on 22nd March 2021 with the appointment of Mitchell Drilling Limited as drilling contractor. Mitchell Drilling will mobilise a drill rig from Tanzania with drilling expected to commence in mid-May. As a demonstration of support for the programme, Mitchell Drilling have agreed to upgrade the drill-rig and supply a larger rig at no additional cost. The selected rig offers increased capacity, providing additional drilling power to the exploration campaign. Importantly the rig is capable of drilling a 6¾" diameter hole to 1,200 metres, making it suitable for appraisal drilling subsequent to a discovery.

Should the Company be in a position to move directly from exploration to appraisal drilling without having to demobilise and remobilise equipment, Helium One would be able to dramatically accelerate the development of the Rukwa Project whilst also reducing associated mobilisation costs. This would allow the Company to advance rapidly from discovery to resource evaluation.

Under the terms of the agreement, Mitchell Drilling may give notice at any time after the results from the first hole are announced to take payment in equity for the drilling of the third hole in the programme. The Shares will be valued at a 10% discount to VWAP (volume weighted average price) calculated from commencement of hole one to the date that the equity notice is given. Additionally, the parties may agree to drill a fourth hole for equity, with shares valued at a 10% discount to VWAP calculated from commencement of hole one to the date that the second equity notice was given.

Eyasi Project (Helium One 100%)

The Eyasi Project covers 804km2 and is situated southern Tanzania some 600km to the north of the Rukwa Project, demonstrating helium gas concentrations as well as ideal geology for source, reservoir, trap and seal. The Eyasi Project is not as advanced in its exploration as the Rukwa Project, however high-grade helium has been measured at surface and structural leads have been identified from published FALCON Airborne Gravity Gradiometry (AGG) data.

On 20 January 2021 the Company announced that work commenced to mobilise surface geochemical exploration at the Eyasi Project. The Eyasi Project has numerous geological similarities to the Rukwa Project showing significant potential to host a helium deposit. Fieldwork focussed on evaluating historic seep locations as well as identifying potential new seep locations at the southern end of the project area. Desktop analysis utilising Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) data has identified anomalous features which may correspond to previously unknown helium-nitrogen macro and micro seep locations. The field crew, equipped with a Mini RUEDI portable mass spectrometer, also tested newly identified seep locations which may extend the known helium-rich geochemical fairway over the Eyasi Project. This geochemistry work successfully reconfirmed the nitrogen-helium rich seepages sampled historically.

Corporate

The Company also announced the strengthening of its in-house technical capabilities with the appointment of Lorna Blaisse as Principal Geologist. Lorna is a skilled petroleum geologist with 15 years' experience in exploration and appraisal across Africa. She has direct experience of rift basin geology, having worked in the Lake Albert Rift Basin in Uganda, as well as operational experience managing successful exploration campaigns in North and East Africa. As Principal Geologist, Lorna will assist with the day-to-day supervision of the drilling and seismic programme, allowing current Technical Director Josh Bluett to step back into an advisory role. The appointment will also enable Helium One to bring seismic interpretation in-house providing better control over the Company's geological modelling of the basin.

The Company was also pleased to announce the appointment of appointment of Canaccord Genuity as joint broker post the period end, demonstrating the growing sophistication of the Company as it moves towards a discovery.

Financials 

As is to be expected with an exploration company, for the six-month period ended 31 December 2020 the Group reported a pre-tax loss of $3,886,357 (six months ended 31 December 2019: $1,594,765). The loss for the period ended 31 December 2020 includes an impairment of $2,277,196 which relates to the merger with Attis Oil and Gas Limited. The Group's net cash balance as at 31 December 2020 was $6,584,886 (six months ended 31 December 2019: $577,997). The Company's is fully funded to carry out its initial exploration campaign.

Outlook

The first half of 2021 is already proving to be an historic and incredibly exciting year for Helium One. We are delivering an aggressive exploration programme on time and on budget. The seismic acquisition is already underway and the programme will culminate in our maiden drilling programme, commencing in mid-May, which also has the flexibility to allow the Company to move straight from exploration to appraisal; further fast tracking our timetable. We believe that this programme will deliver a transformational clean and sustainable helium project with simply logistics to access the market.

I would also like to take this opportunity to thank the Government of Tanzania and the local communities where we operate for their continued support, as well as thank our management team for their continued dedication - all of which have enabled the Company advance its operations at such a dramatic pace.

The company was deeply saddened to hear of the passing of His Excellency President John Magufuli, who led the United Republic of Tanzania for six years. We send our condolences to his family and to the people of Tanzania. We welcome President Samia Suluhu Hassan in this historic moment as she assumes the role as the first Female president of Tanzania, and are confident that her leadership will bring further prosperity to the country.

We continue to monitor the effect of the outbreak of the recent global COVID-19 virus which has resulted in business disruption and stock market volatility. The extent of the effect of the virus, including its long-term impact, remains uncertain. However, the Group has implemented extensive business continuity procedures and contingency arrangements to ensure that we are able to continue to operate with minimal disruptions.

Finally I would also like to thank our shareholders for their continued commitment and support. We look forward to providing further updates for all our stakeholders as our programme progresses and we prove up our Rukwa Project into what we believe is an asset with globally significant implications in a supply constrained helium market.

Summary of Licences

 The interim report was approved by the Board of Directors and signed on its behalf by:

Ian Stalker

Chairman

29 March 2021

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. General Information

The principal activity of Helium One Global Limited (the 'Company') and its subsidiaries (together the 'Group') is the exploration and development of helium gas resources. The Company's shares are listed on the AIM Market of the London Stock Exchange. The Company is incorporated in the British Virgin Islands. The address of its registered office is P.O Box 957, Offshore Incorporations Centre, Road Town, Tortola, British Virgin Islands.

2. Basis of Preparation

The Company acquired the entire share capital of Attis Oil and Gas Limited via its merger with Helium One Treasury Limited effective 4 December 2020 which the Directors have treated as a business combination. The Directors are required to and have prepared consolidated condensed financial statements which include the results of the acquired subsidiary from the date that the control was transferred.

The unaudited condensed consolidated interim financial statements have been prepared in accordance with the requirements of the AIM Rules for Companies. As permitted, the Company has chosen not to adopt IAS 34 "Interim Financial Statements" in preparing this interim financial information. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 30 June 2020, which have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union.

The interim financial information set out above does not constitute statutory accounts. They have been prepared on a going concern basis in accordance with the recognition and measurement criteria of International Financial Reporting Standards (IFRS) as adopted by the European Union. Statutory financial statements for the year ended 30 June 2020 were approved by the Board of Directors on 3 November 2020. The report of the auditors on those financial statements was unqualified but included a material uncertainty relating to going concern paragraph.

Going concern

The Directors, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the condensed interim financial statements for the period ended 31 December 2020. It is noted that the Group raised $8,357,135 in cash via various financing activities during the period which fully funds the Company's planned exploration programme.

The factors that were extant at the 30 June 2020 are still relevant to this report and as such reference should be made to the going concern note and disclosures in the 30 June 2020.

Risks and uncertainties

The Board continuously assesses and monitors the key risks of the business. The key risks that could affect the Group's medium-term performance and the factors that mitigate those risks have not substantially changed from those set out in the Group's 2020 Annual Report and Financial Statements. The key financial risks are currency risk, liquidity risk, credit risk and market risk.

Critical accounting estimates

The preparation of condensed interim financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and disclosure of contingent assets and liabilities at the end of the reporting period. Significant items subject to such estimates are set out in note 4 of the Group's 2020 Annual Report and Financial Statements. Actual amounts may differ from these estimates. The nature and amounts of such estimates have not changed significantly during the interim period.

The Directors have reviewed the estimated value of each project and goodwill arising on acqusition and have concluded that the goodwill upon acquisition of Attis Oil and Gas Limited be impaired to $nil. The fair value of the net assets of Attis Oil and Gas Limited was deemed to be $22,220. This review takes into consideration the expected costs of extraction, long term oil and gas prices, anticipated resource volumes and supply and demand outlook.

3. Accounting Policies

Except as described below, the same accounting policies, presentation and methods of computation have been followed in these condensed interim financial statements as were applied in the preparation of the Company's annual financial statements for the period ended 30 June 2020.

3.1 Changes in accounting policy and disclosures

(a) New and amended standards mandatory for the first time for the financial year beginning 1 January 2021

As of 1 January 2020, the Company adopted IAS 1 (amendments) definition of material,  IAS 8 (amendments) definition of material, IFRS 3 (amendments) definition of material and Amendments to References to the Conceptual Framework in IFRS Standards. 

Of the other IFRSs and IFRICs, none are expected to have a material effect on future Company Financial Information.  

(b) New standards, amendments and Interpretations in issue but not yet effective or not yet endorsed and not early adopted

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the condensed interim financial statements are listed below. The Company intends to adopt these standards, if applicable when they become effective.

*Not yet endorsed by the EU.

The Company is evaluating the impact of the new and amended standards above. The Directors believe that these new and amended standards are not expected to have a material impact on the Company's results or shareholders' funds.

4. Dividends

No dividend has been declared or paid by the Company during the six months ended 31 December 2020 (six months ended 31 December 2019: $nil).

5. Loss per Share

The calculation of basic loss per share is based on a retained loss of $3,886,357 for the six months ended 31 December 2020 (six months ended 31 December 2019: $1,594,765) and the weighted average number of shares in issue in the period ended 31 December 2020 of 231,288,602 (six months ended 31 December 2019: 145,873,157).

No diluted earnings per share is presented for the six months ended 31 December 2020 or six months ended 31 December 2019 as the effect on the exercise of share options would be to decrease the loss per share.

6. Intangible assets

The movement in capitalised exploration and evaluation costs during the period was as follows:

7. Share Capital

1 Net of issue costs of $408,072.

All shares issued are done at no par value.

On 9 September 2020, The Company issued 18,000 new ordinary shares in the Company at a price of $0.1 per share in lieu of fees for a total value of $1,800.

On 9 September 2020, The Company issued 4,000,000 new ordinary shares in the Company at a price of $0.025 per share for gross proceeds of $100,000.

On 9 September 2020, The Company issued 985,712 new ordinary shares in the Company at a price of $0.035 per share in lieu of fees for a total value of $34,500.

On 4 December 2020, The Company issued 211,267,597 new ordinary shares in the Company at a price of $0.0369 per share for gross proceeds of $7,800,000 less issue costs of $408,072.

On 4 December 2020, The Company issued 12,514,349 new ordinary shares in the Company at a price of $0.0369 per share in lieu of fees for a total value of $462,030.

On 4 December 2020, The Company issued 62,281,048 new ordinary shares in the Company at a price of $0.0369 per share as consideration for Attis Oil and Gas Limited via it's merger with Helium One Treasury Limited.

On 4 December 2020, The Company issued 29,008,239 new ordinary shares in the Company at a price of $0.0369 per share as part of the conversion of a Convertible Loan Note for a total value of $1,070,984.

8. Business Combination

On 5 November 2020, the Company and Attis Oil and Gas Limited ("Attis") entered into the Amalgamation Agreement whereby a wholly owned subsidiary of the Company, Helium One Treasury Limited agreed to acquire all of the assets and liabilities of Attis Oil and Gas Limited subject to Shareholder approval from the Attis Oil and Gas Limited shareholders (the "Amalgamation").

On 4 December 2020 the Company announced that it had completed the Amalgamation whereby Helium One Global Limited acquired 100% of the share capital of Attis Oil and Gas Limited via it's merger with Helium One Treasury Limited. The total consideration of $2,299,416 was satisfied by the issue of 62,281,048 new Ordinary Shares to the Attis Oil and Gas Limited sellers at a price of $0.0369 per Ordinary Share. The acquisition date is 4 December 2020.

Attis' primary activities at the date of acqustion was the investment and development in oil and gas exploration and production. The Amalgamation was undertaken for several reasons. The association with Attis has provided invaluable introductions to investors for Convertible Loan Notes and the IPO. It also provided the Company with access to and the benefit of Attis' shareholders, many of whom have been supportive and have participated in the IPO. The Attis shareholders may also contribute towards additional liquidity in the trading of the Company's shares in the future. Helium also received the benefit of Attis' cash balances which was used to pay the costs associated with Admission, leaving the majority of new money raised at Admission to be used for the Company's work programme.

The following table summaries the fair value of assets acquired and liabilities assumed as the acquisition date:

Upon acquisition an impairment of $2,277,196 was booked against the purchase consideration of $2,299,416 over the excess of the net assets acquired.

9. Events after the balance sheet date

On 20 January 2021 the Company issued 2,868,954 new ordinary shares in the capital of the Company to satisfy the conversion of Convertible Loans.

10. Approval of interim financial statements

The Condensed interim financial statements were approved by the Board of Directors on 29 March 2021.

**ENDS**

Notes to Editors

Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.

Helium One's assets are located within the rift basins on the margin of the Tanzanian Craton. Through Helium One's subsidiary companies Gogota (Tz) Limited, Stahamili (Tz) Limited and Njozi (Tz) Limited, the Company has secured 18 Prospecting Licences covering more than 4,512 km² in three distinct project areas: the Rukwa, Balangida and Eyasi projects. These are located near surface seeps with helium concentrations ranging up to 10.5% He by volume.

The Rukwa Project is located within the Rukwa Rift Basin covering 3,448km2 in south-west Tanzania. The project is considered to be an advanced exploration project and the company has identified 21 prospects and 4 leads based on historical drilling, reprocessed seismic lines, high resolution gravity survey, and surface seeps analysis.

SRK Consulting have reported a 'Best Estimate' Un-risked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project, meaning that the project has potentially strategic global implications with the ability to significantly resolve helium supply/demand issues.

All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1.