Watcher, page-29

I had a read of the annual report and there is some interesting commentary about the permit process. Not sure if this adds to any confusion as it does pose some questions.

Seems to indicate that other applications may have already been submitted - and that the initial permit application may be granted before the hearing date *(which I thought could not happen anyway).

It is worth noting that in the event of an uncontested application (i.e. no petitions filed), the COGCC
may elect to approve the application without a formal hearing. Irrespective of whether a hearing
is held or otherwise, in the event of an uncontested application Blue Star expects to receive the
final permit to drill its Enterprise 16#1 well during Q4 2021.
DIRECTORS’ REPORT continued
Blue Star Helium Limited and Controlled Entities 6
If a petition is filed, the current hearing date is vacated and a contested hearing process is
undertaken. Such a process involves a prehearing conference and then a Case Management Order
being issued which sets the hearing, and any pre-hearing, deadline(s) for submissions.
With respect to planned drilling of other prospects, Blue Star submitted initial drilling locations for
a further four wells (to test the Galactica and Pegasus prospects) to the State Land Board in late
July 2021. Following County review, these applications are expected to be submitted to COGCC
shortly.
The Company is seeking to permit multiple potential wells across its various Las Animas County
prospects on a rolling basis. This rolling permitting strategy is designed to give Blue Star significant
flexibility around well selection and is expected to allow a continual drilling program with a
substantial degree of embedded responsiveness to respective drilling outcomes.