Ann: Helium Development Well Permitting Update -Galactica-Pegasus, page-5

At least BNL is getting some media exposure.

Blue Star builds its pool of helium development wells at Galactica/Pegasus - *

Blue Star builds its pool of helium developmentwells at Galactica/Pegasus

Blue Starnow has seven proposed development wells in its Galactica/Pegasus heliumproject at an advanced stage of permitting to follow on from its recentdiscoveries.

TheColorado Oil and Gas Conservation Commission (COGCC) has accepted theGalactica-Pegasus OGDP (Oil and Gas Development Plan) II, which covers theproposed Jackson 1, Jackson 2 and Jackson 3 wells, as complete and passed tothe final review and hearing phase.

Notably,this process was concluded in just 65 days from submissions – almost twice asquickly as the five OGDPs in Las Animas County that were previously submittedby Blue Star Helium(ASX:BNL) and two other operators.

COGCC hasalso approved the Forms 2A relating to the State 09, State 16, State 35 andState 36 wells under two OGDPs which were recently approved by the COGCC.

Thisenables the company to submit the final Form 2s applications to drill inrespect of these wells.

All sevenwells will be drilled as offset development wells to the successful JXSN#1 andJXSN#2 helium discoveries made earlier this year.

Successful helium exploration

Therecent JXSN#4exploration well flowed gas containing up to 6.5% helium to surface, more than double the helium content (3.14%) of the gas column intersected in JXSN#2.

While thewell will not be developed due to its being drilled under the water wellexploration program, the result adds to the helium prospectivity of theGalactica/Pegasus project and provides valuable control for the developmentdrilling.