Ann: Trading Halt, page-21

### Analysis from a Blue Star Helium (BNL) Stockholder’s Perspective

The recent developments, particularly the partnership with Helium One Global Ltd, are pivotal for Blue Star Helium (BNL). For shareholders, these developments bring both opportunities and risks, which need to be carefully considered.

#### Key Benefits for BNL Stockholders:

1. **Immediate Capital Injection**:

- The partnership brings in approximately £6.43 million (about USD 8.2 million) through Helium One’s fundraising efforts. This capital is earmarked for specific developments in the Galactica-Pegasus project, which is crucial for advancing towards production. For shareholders, this means that the company has the necessary funds to push forward without immediate dilution from issuing more shares or taking on debt.

2. **Validation and Increased Confidence**:

- The involvement of Helium One, a company focused on helium exploration and production, serves as a strong validation of the potential in Blue Star Helium’s assets. This partnership can increase investor confidence, potentially leading to a positive impact on the stock price as the market reacts to the reinforced credibility and the new influx of capital.

3. **Potential for Accelerated Production**:

- With the plan to drill 15 wells, including six in the near term, there is a clear roadmap to production. For stockholders, this translates into the potential for revenue generation in a relatively short timeframe, with first production targeted for H1 2025. The prospect of near-term cash flow could enhance the company’s valuation and lead to stock appreciation.

4. **Diversification of Revenue Streams**:

- The project also includes the sale of CO2 alongside helium. This diversification can stabilize revenues and reduce dependency on a single commodity. For stockholders, this diversification is a positive sign, as it spreads risk and can lead to more stable and predictable earnings.

#### Potential Risks and Considerations:

1. **Dilution Risk**:

- While the immediate funding has been secured through Helium One’s raise, there’s always a risk of future dilution if additional capital is required. Stockholders should be mindful that further equity raises or financing could dilute their holdings.

2. **Execution Risk**:

- The success of this partnership and the potential stock appreciation hinges on the successful execution of the drilling and production plan. Any delays, cost overruns, or technical difficulties could negatively impact timelines and financial outcomes, which would reflect in the stock price.

3. **Regulatory and Market Risks**:

- The project’s success is contingent on regulatory approvals and market conditions. Any adverse regulatory decisions or shifts in the helium market could impact the project’s viability and, consequently, the stock’s performance.

4. **Market Reaction**:

- While the partnership could be seen as a positive move, it’s also possible that the market might view it with caution, especially if there are concerns about the terms of the deal or the potential for Helium One to influence BNL’s strategic direction. Stockholders need to keep an eye on market sentiment and how it impacts BNL’s stock price.

### Conclusion:

For BNL stockholders, the partnership with Helium One is a significant development that could bring substantial benefits, including a strong capital infusion, accelerated production timelines, and diversified revenue streams. However, the risks associated with execution, potential dilution, and regulatory hurdles should not be overlooked. Stockholders should stay informed about project progress and market reactions to navigate their investment effectively.

If the project proceeds as planned, stockholders could see a meaningful appreciation in BNL’s stock price as the company moves closer to becoming a revenue-generating helium producer.