Royal Helium Ltd. (TSXV: RHC) (TSXV: RHC.WT) (OTCQB: RHCCF) ("Royal" or the "Company") is pleased to announce that it has executed a term sheet with an arm's length lender to provide a USD $20 million three-year credit facility. In accordance with the term sheet, an initial draw on the facility in the amount of USD $10 million will be advanced to the Company upon closing, which is anticipated to occur on or about December 12, 2022. Proceeds will be used for development and production facilities at the Steveville helium field in Alberta, Canada, to begin purchases for Royal's production facilities in Saskatchewan, Canada and for general corporate purposes.

Mr. Jeff Sheppard, the Chief Financial Officer of Royal states, "This project financing, once closed, covers the remaining costs for the Alberta processing plant, allowing Steveville to begin helium deliveries to our off-take partners by April 2023. The credit facility further allows us to begin procurement for our Saskatchewan processing plants at Climax. This credit facility enables the completion of our plant and equipment and our first sales without the reliance on the equity markets."

Amounts drawn under the facility are subject to 14% per annum interest. In consideration for the grant of the facility, the Company has agreed to pay the lender a 5% structuring fee and to issue share purchase warrants equal to 9.90% of the issued share capital of the Company at closing, each such warrant exercisable into one common share at a price of CAD $0.35 per common share for a three-year period. Royal will have the right to voluntarily repay, at any time, the principal amount plus interest subject to a minimum interest amount. The facility will be secured by a first charge on the Company's assets pursuant to a general security agreement and will be subject to customary loan covenants.

Hannam & Partners (UK) acted as financial advisors to the Company in this transaction. Completion of the credit facility and issuance of the warrant consideration is subject to execution of a definitive agreement and TSX Venture Exchange and regulatory approvals.

About Royal Helium Ltd.

Royal controls over 1,000,000 acres of prospective helium land across southern Saskatchewan and southeastern Alberta. All of Royal's lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity. Royal's helium reservoirs are carried primarily with nitrogen. Nitrogen is not considered a greenhouse gas ("GHG") and therefore has a low GHG footprint when compared to other jurisdictions that rely on large scale natural gas production for helium extraction. Helium extracted from wells in Saskatchewan and Alberta can be up to 99% less carbon intensive than helium extraction processes in other jurisdictions.