Grand Gulf Energy Limited provided an update on the Red Helium project. Sproule Energy Consulting is an independent resources and reserves certification specialist and is considered the world's leading helium evaluator. Valence Resources LLC ("Valence") is operator of the Red Helium Project and Grand Gulf has a 70% working interest in Valence, with a right to earn 85%.

With the positive results at Jesse#1A, Sproule opines that Valence has established "discovered" status of the reservoir which will allow the Prospective Resources to be classified as Contingent Resources at the Jesse-1A location. A Contingent Resource booking will require a future evaluation by Sproule and will incorporate the results of Jesse#1A and potentially future wells: The highlighted Jesse#1A results, generally exceeding pre-drill expectations: Over 200 feet of gross gas column (from 8,070'); 101 feet of net pay Helium gas flow to surface with laboratory tested concentrations of 0.8%; Gas Sales and Processing Agreement with Paradox Resources LLC. Under the Society of Petroleum Engineers Petroleum Resource Management System (SPE PRMS) Contingent Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, by the application of development project(s) not currently considered to be commercial owing to one or more contingencies.

Helium Grade; The last three gas samples analysed at the Jesse#1A well ranged from 0.77% to 0.86% helium; an increase of over 40% from the previously announced range of 0.44% to 0.65% helium. Isotopic analysis supports these samples as the most representative of reservoir gas, with variability due to flowing conditions, and Sproule calculating an average grade of 0.8%, exceeding pre-drill expectation. Jesse#1A Wellbore; The Jesse#1A is vertical wildcat well with an open-hole completion in the Leadville Dolomite formation.

The well was designed as an aggressive data gathering well over the full productive zone of the Leadville Dolomite formation (primary target) to accelerate full field development. The well identified a gas water contact in the lowest section of the wellbore based on the petrophysical logs. The gas water contact is critical information which allows the delineation of gas leg for development planning for future Jesse wells and for resource definition and leasing prioritisation.