CORPORATE PRESENTATION August 2018
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB TSX.V:AHE/OTCQB:AHELF/XFRA:43UB DISCLAIMER & READER ADVISORY This presentation is provided solely for information purposes to shareholders and qualified parties and does not constitute an offer to sell or solicit an offer to buy any securities of the Company and/or its subsidiaries. This document may contain forward-looking statements within the meaning of certain securities laws, including provisions of the Securities Act (Ontario). These forward-looking statements are based on projections, expectations and estimates as of the date of this document. Forward- looking statements are provided for the sole purpose of providing information about management’s expectations and plans. All forward- looking statements made in this document are qualified by these cautionary statements and those made in the Company’s other f ilings with the securities regulators of Canada. The information contained in this presentation is considered accurate as of its date. Such information is subject to change at any time and this presentation should not be construed to indicate that there has been no change in the affairs of the Company and/or its subsidiaries at or near or since the date hereof. Any projections of financial and operating performance that are provided in this presentation of management’s projected business objectives should not be construed or be relied upon as accurate representations of future results. An investment in American Helium Inc. is speculative due to the nature of the Company's business. Investors must rely upon the ability, expertise, judgment, discretion, integrity, and good faith of the management of the Company. Actual results will likely vary and may vary materially. No representation or warranty is made as to the accuracy or completeness of any of the information contained herein. We seek safe harbor. Certain information contained herein is considered “analogous information” as defined in National Instrument 51 - 101 (“NI 51 - 101” ). Such analogous information has not been prepared in accordance with NI 51-101 and the Canadian Oil and Gas Evaluation Handbook. In particular, this presentation notes specific analogous oil, gas and helium discoveries and corresponding details of said discoveries in the area of the Company’s property interests and makes certain assumptions about such property interests as a result of such analogous information and potential recovery rates as a result thereof. Such information is based on public data and information recently obtained from the public disclosure of other issuers who are active in the area, and the Company has no way of verifying the accuracy of such information and cannot determine whether the source of the information is independent. Such information has been presented to help demonstrate that hydrocarbons and helium may be present in commercially recoverable quantities in the Company’s areas of inte rest. There is no certainty that such results will be achieved by the Company and such information should not be construed as an estimate of future reserves or resources or future production levels of American Helium Inc. 2
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB HIGHLY FAVOURABLE SUPPLY / DEMAND FUNDAMENTALS COMPANY OVERVIEW • Uncertainty of supply and supply disruptions - US Federal Reserve closes 2021 (~13% of FY 2016 global supply) • Cannot be substituted, strong medical & high-tech demand - price has doubled since 2010 DIVERSE SELECTION OF HELIUM PROJECTS: • Colorado : Project agreement with Yankee Resources to acquire acreage in SE Colorado and re-drill two wells with proven helium resources. He • Arizona: Project agreement with Holbrook Basin Energy to identify exploration targets for drilling in a well-established helium production district with He concentrations as high as 10%. • Utah: 100% Working Interest, 87.55% Net Revenue Interest in 17 thousand acres in Carbon County, Utah with a NI 51-101 Report by Gustavson Associates that notes commercial quantities of Helium. American Helium is an exploration company focused on developing helium HIGHLY EXPERIENCED TEAM resources in North America to increase • Industry renowned helium geologists and technical team the global helium inventory • Focused management professionals with a track record of success in the resource space PATH TO PRODUCTION • Focused development plan to commercialize assets and achieve production by end of 2019. 3 *Source: Gustavson Associates NI 51 -101 Report on Bruin Point Assets
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB TSX.V:AHE/OTCQB:AHELF/XFRA:43UB CONCLUSIONS 2018 - 2019 He Potential Near-Term Opportunity Exploration Plays Seeking Capital Drilling Production Available placements and/or possible Low share price Late 2018 Cheyenne Project: Currently owned or strategic partner/shareholder Excellent entry point agreements signed; land End 2019 leased and being expanded 4
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB COLORADO NORTH CHEYENNE PROJECT South East Colorado USA Located at north end of prolific Las Animas Arch of SE Colorado Low Risk Re-entry or well twinning opportunities Inexpensive leasing costs World-class Morrow rock quality (reserves recovered quickly w/ high NPV) 4-5% Helium in Morrowan gas reservoirs insulated from natural gas pricing downside Surrounded by multi-BCF Morrowan fluvial reservoirs detectable on 3D seismic 1.5 BCF/well natural gas and He reserve potential. Valley trends point toward Project Area Drilling cost of $500K/well with potential production of 2-3 MMCFD natural gas (5% He) 5
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB COLORADO NORTH CHEYENNE PROJECT Stratigraphic Column – Prospective Horizons TYPICAL GAS ANALYSIS Morrow Structure 100’ c.i. Mole % GPM COMPONENT Expect 5% Helium Project Area HELIUM (HLM) 5.58% and 400+ BTU gas in Morrow incised HYDROGEN (H2) 0.00% valley sandstones NITROGEN (N2) 66.02% CARBON DIOXIDE (C02) 0.76% METHANE (C1) 21.25% ETHANE (C2) 1.69% 0.433 PROPANE (C3) 1.43% 0.375 I GO-BUTANE (IC4) 0.25% 0.079 N-BUTANE (NC) 0.66% 0.198 ISO-PFNTANE (1C5) 0.23% 0.080 N-PENTANE (NC5) 0.34% 0.120 HEXANES (C6) 1.79% 0.739 Indicates TOTAL 100.00% 2.025 conventional oil potential GROSS HEATING VALUE PER CU.FT. @60F & 14.65 PSIA DRV 402 BTU Remarks: Morrow Formation 6
7/25/18- 14 Hour flow test: 3 MMCFD on 1 1/4" choke increasing to 4.15 MMCFD 7/25/18- 14 Hour flow test: 3 MMCFD on 1 1/4" choke increasing to 4.15 MMCFD TSX.V:AHE/OTCQB:AHELF/XFRA:43UB COLORADO NORTH CHEYENNE PROJECT Offline when RE-DRILL OPPORTUNITIES producing 500MCFD COMPLETION REPORT 7/25/18 14 Hour Flow Test: 3 MMCFD on 1 1/4" choke Increasing to 4.15 MMCFD 7
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB COLORADO NORTH CHEYENNE PROJECT Seismically Definable Morrowan Valleys 3D SEISMIC-BASED EXPANSION OPPORTUNITY The 3D seismic program provides an opportunity for significant helium reserves upside in the project area. The project immediately offsets Morrow gas production that averages 1.5 BCF/well, ranging up to 2.7 BCF HELIUM 7-WELL FULL CYCLE ECONOMICS Leasing, 3D seismic, drilling, 1.5 BCF/well NPV = $34.2 MM Cum Cash Flow = $55.2 MM Spending = $6.6 MM Smaller Morrow channels on 3D seismic survey Western Central Kansas Uplift 8
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB COLORADO NORTH CHEYENNE PROJECT SUMMARY 3D SEISMIC DRILLING COSTS COMPLETION 5600’ drilling depth to test the Required to define $500K est. ~ 30sq.mi. leasing $475K GAS seismic anomalies (assumes $25/acre) Morrowan Valleys $550K OIL $800K est. ~30 sq.mi. 3D survey Approx. completed well cost ($26K/mi. acquisition, permits & processing) 9
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB ARIZONA HOLBROOK BASIN PROJECT 4 CORNERS, ARIZONA USA Venture agreement with Holbrook Basin Energy LLC of Golden, CO Located in “Four Corners” area where the States of Utah, Colorado, New Mexico and Arizona meet Helium productive Holbrook Basin where concentrations of the gas are as high as 10%. UTAH COLORADO Arizona is known in the industry as “the Saudi Arabia of helium” NEW ARIZONA MEXICO Holbrook Basin Energy has developed a compelling exploration play and target land identification is underway. 10
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB ARIZONA HOLBROOK BASIN PROJECT Significant production and shows of Helium in North Eastern Arizona Major Helium Producing Intervals Modified after Rauzi and Fellows (2003) Basin structural cross section modified after Rauzi and Fellows (2003) 11
TSX.V:AHE/OTCQB:AHELF/XFRA:43UB UTAH BRUIN POINT ASSET Carbon County, Utah USA 12 BLM leases totaling 17,767.04 acres in Carbon County, Utah UTAH AMERICAN HELIUM 100% Working Interest (WI) LEASEHOLD 87.55% Net Revenue Interest (NRI) UNITAH BASIN Leases are in effect until 1/31/2025 Located in close proximity to key infrastructure for separating helium from CARBON COUNTY other gases located in Carbon County, Utah HARLEY WOODSIDE DOME USHR #1 USHR #2 PARADOX BASIN NI 51-101 Report by Gustavson Associates notes commercial quantities of Helium 12
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