RHC Capital Corporation Provides Update on Drilling Schedule and Interpretation of Results

Saskatoon, Saskatchewan (FSCwire) - RHC Capital Corporation (TSXV: RHC), operating through its wholly owned subsidiary Royal Helium Corporation (“RHC” or the “Company”), is pleased to provide an update with respect to its first target helium well, further analysis of its recently interpreted 3D seismic data and interpretation of well results.

Seismic Interpretation

Scott Newman, CEO of RHC commented, “As previously released on October 30^th, 2017, a review of the 3D seismic program for the Company’s Bengough assets is complete. The 3D seismic data indicated multiple locations with four (4) way closure presenting excellent traps for helium to accumulate. The interpretation of these zones will be re-evaluated in conjunction with receiving the results from the initial well, but based on our analysis to date all target areas identified are currently viewed as being equally prospective.  As such, a positive result on our first well should be repeatable across the remaining targets at Bengough”.  Mr. Newman further states that “the geological model we developed in evaluating our Bengough land holdings was applied prior to the acquisition of all of our land, so a positive result would also help us in assessing the opportunities at our Val Marie and Shaunavon assets as well.”.

Initial Well

The first well in the program is the re-completion of an existing vertical oil well. The re-completion has been scheduled for the second week of November, subject to license approval from the Government of Saskatchewan and conducive weather conditions.  Drilling is expected to take approximately 10-15 days to complete. Data on preliminary helium concentrations may be available within 2 weeks of completion of the well, but more detailed results will not be available until after further production testing is completed at 30, 60 and 90 days intervals. It is anticipated that temporary production equipment will be brought on-site to test the well while plans for a more permanent facility are evaluated.

Evaluating Results

RHC's assets are comprised of some of the highest known historical helium concentrations in Saskatchewan. Helium concentration’s that are considered ‘high’ as it pertains to helium deposits are actually quite low as a percentage of total gas.  RHC expects to produce as much as 99% nitrogen and other gases by volume with the remainder being helium. The Saskatchewan Ministry of the Economy sets a 0.3% helium concentration as the economic cut-off for a well with primary helium production. Significant producers in the province have experienced economic helium concentrations between 0.70% and 1.10%.  Our preliminary analysis revealed a number of historically recorded helium concentrations in our target area with more than 1% helium by production volume.  If RHC is able to achieve such volume, RHC anticipates it will have achieved its first helium production well and view that as highly favourable for solidifying the exploration model that has already been developed. 

Helium Market

The current global market is estimated to be ~8 Billion Cubic feet (“cf”) annually, with the price of bulk liquid helium rising by more than 100% in the past ten years.  Pricing information is generally determined through private contracts for both liquid and gaseous forms, though liquid helium tends to sell at a significant premium to the gaseous equivalent volume.  The US Bureau of Land Management (BLM) does post recent and historical auction results for crude helium sales from its reserves (https://www.blm.gov/programs/energy-and-minerals/helium/federal-helium-o...).  The July 2017 BLM auction results for 2018 helium allocations were released with helium priced at $112-$125USD/Mcf (Thousand cubic feet).   

In 2013 the BLM announced that it would begin to auction off the reserve annually until it declined to 3.0 billion cubic feet.  Depletion to this level is estimated to occur before 2021 at that point the reserve would only supply U.S. government users which would remove a significant portion of existing capacity from the world market.

With approximately 60% share of global supply in 2015, USA is the world’s leading helium supplier, followed by Qatar with ~25% (USGS). Algeria, Australia, Canada, Poland, and Russia are also producers. 

Applications

The uses for helium span multiple industries, including health care, high tech industries, space and rocketry, along with more day to day uses such as leak detection and welding.  The cooling properties of helium are essential as a cooling medium for superconducting magnets in MRI scanners, NMR spectrometers and other areas of scientific research. Helium has also been used to keep satellite instruments cool and is essential as a counter-balance gas for space travel and rocketry as fuel gas is expended.  Due to its unreactive nature, helium is used to provide an inert protective atmosphere essential for making fiber optics and semiconductors and for arc-welding various metals. Helium has applications in leak detection, such as in car air-conditioning systems and gas pipelines.  Some gaseous helium mixtures are used to treat respiratory ailments in healthcare applications, and helium is also used in various laser applications.  To date, there are no known replacement products for helium in any of its current uses, making it a strategic and highly valuable resource.

Incentive Stock Options

The Company also wishes to announces that its board of directors has granted an aggregate of 1,700,000 incentive stock options to directors and officers of the Company at an exercise price of $0.15 per share. In accordance with the Company's Stock Option Plan, of the foregoing options, half shall vest immediately and the other half will vest at the one-year anniversary of the grant date and shall expire 10 years after issuance, subject to earlier expiration in accordance with the stock option plan and the applicable policies of the TSX Venture Exchange.  Such options (and the common shares issuable upon exercise) will be subject to applicable securities law hold periods.

About RHC

Royal Helium Corporation is a wholly owned subsidiary of RHC Capital Corp (TSXV: RHC) with all assets in Saskatchewan.  RHC is thought to be the largest Helium leaseholder in Canada and is one of the largest in North America.  To date, RHC is the first and only company focused on primary helium production, listed on a Canadian exchange.  RHC’s assets were methodically evaluated for their helium potential for over two years and have been vetted by helium experts, professional geologists/engineers, and major industry participants.

For further information, please contact:

RHC Capital Corporation (Royal Helium Corporation)

Michael Graham, Chief Financial Officer

Tel: (647) 778-6946

Email: mgraham@royalhelium.com

www.royalhelium.com

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term that is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.

FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning RHC's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "intends" "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved".

These forward-looking statements are based on current expectations, and are naturally subject to uncertainty and changes in circumstances that may cause actual results to differ materially.  Although RHC believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that these expectations will prove to be correct. There are risks which could affect RHC's future results and could cause the results to differ materially from those expressed in these forward-looking statements.

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