Avanti Energy

Disclaimer

This presentation has been prepared as of January 2021 (the “Presentation”) for information purposes only and does not constitute an offer or solicitation to sell shares or securities in Avanti Energy Inc or Terrelium Resources Crop. (“Terrelium Resources Avanti Energy” or the “Companies”) or any affiliated or associated company. This presentation does not purport to contain all of the information about the business of the Companies. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this Presentation does not constitute investment advice or counsel or solicitation for investment in any security. This Presentation does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation or offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. The Company expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained herein, (ii) any error, omission or inaccuracy in any such information and (iii) any action resulting therefrom. Currency references are to Canadian Dollars (CAD $) unless otherwise indicated.

Certain information set forth in this Presentation contains “forward-looking information” and “forward-looking statements” under applicable securities laws. Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) completion of, and the use of proceeds from the sale of shares being offered hereunder; (ii) the expected development of the Companies’ business, projects and joint ventures, including the estimated timelines for achieving milestones in connection therewith; (iii) execution of the Companies’ vision and growth strategy, including with respect to various jurisdictions in Canada and the United States; (iv) sources and availability of financing; and (v) identification of potential commercial and distribution partners. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

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We’re going to be looking back and thinking, I can’t believe people just used to fill up their balloons with it, when it’s so precious and unique

Peter Wothers – Cambridge University
– Chemist –

Why Helium

As a noble gas Helium is not combustible and has properties that make it irreplaceable for industrial applications like fibre optic cables, data centres, semiconductor manufacturing, medicine / MRI machines, cooling & cryogenics. Helium is the second most abundant element in the universe but extremely rare on earth. Avanti is focused on developing large scale projects to extract Helium deposit trapped within the earth.

Why Helium

As a noble gas Helium is not combustible and has properties that make it irreplaceable for industrial applications like fibre optic cables, data centres, semiconductor manufacturing, medicine / MRI machines, cooling & cryogenics. Helium is the second most abundant element in the universe but extremely rare on earth. Avanti is focused on developing large scale projects to extract Helium deposit trapped within the earth.

Fastest Growing Uses

Demand Constituents of Helium (USA)

Source: US Geological Survey, Cormark Securities Inc.

Fueling the High Tech Future

Where is Helium Found?

Where is helium found?

Helium Generation and Trapping Model

Helium is generated by the decay of uranium and thorium in the basement rocks
Once released from the source rock, helium can interact with formation water
Formation water carries the dissolved gases as it ascends
When the water contacts a pre-existing gas cap (containing methane or carbon dioxide), Helium partitions out into the gas cap.
Helium concentration varies going up the stratigraphic rock column

Modified from On The Hunt for Helium, Physics World (2017)

Helium Generation and Trapping Model

Helium is generated by the decay of uranium and thorium in the basement rocks
Once released from the source rock, helium can interact with formation water
Formation water carries the dissolved gases as it ascends
When the water contacts a pre-existing gas cap (containing methane or carbon dioxide), Helium partitions out into the gas cap.
Helium concentration varies going up the stratigraphic rock column

Rising Demand & Geopolitical Risk to Supply

U.S. Helium Production

The US is the world’s largest producer, accounting for roughly 40% of supply. However, the US National Helium Reserve in Amarillo, Texas, the world’s single largest source of helium for the past 70 years, is now exhausted. Where will the replacement helium come from?

Helium Stewardship Act Expires Sept 2021 requiring the BLM to auction off all remaining Helium Reserves. BLM’s exit from the market will eliminate the current price ceiling.

Canada is estimated to have the 5th largest Helium reserves in the world, and they are virtually untapped.

Historical Pricing

Separation & Purification

Supply Chain

“In a world full of game players, the only way to set yourself apart is to be a game changer”

Matshona Dhliwayo

Management Team

Chris Bakker MBA

MBA, CEO

Chris Bakker has over two decades of experience in oil and gas, most recently working as a commercial negotiator with Encana/Ovintiv for major facilities and pipelines in the Montney gas play. His expertise includes all facets of Natural Gas Exploration like land acquisition, exploration, drilling, well production and facility integration and construction. Chris also has start-up experience taking a tech gaming company from conception to market as well as acting as an advisor for start-ups. Prior to Avanti, Mr. Bakker co-founded Terrelium Resources as a pure-play helium company.

Rob Gamely

President

Rob Gamley’s career spans over a decade in corporate finance and consulting, providing corporate strategy and communications services to public companies across a broad range of industries including biotech, oil and gas and natural resource exploration and development. He has been a board member of several TSXV-listed companies and brings extensive capital markets experience and a considerable network of both retail and institutional contacts. Gamley graduated in 1998 with a Bachelor of Science from the University of British Columbia.

Genga Nadaraju

VP – Subsurface

Genga Nadaraju holds over two decades of diverse professional experience in the oil and gas industry that includes asset exploitation, strategic planning, investor relations, and technical innovation. Most recently, she was the lead technical advisor for the Montney gas field and has extensive experience in natural gas Geology, Geophysics & Reservoir Characterization. Nadaraju brings strong project management and organizational skills with the ability to interact effectively with all stakeholders within the organization, both internally and externally.

Cam Buss

P.ENG, VP - Engineering

Cam Buss is a professional engineer with 28 years’ experience. Mr. Buss worked for Encana (now Ovintiv) for twenty-five years taking on roles up to Senior Manager in both upstream and midstream oil & gas. His broader experience includes O&G development, long range planning, infrastructure planning and design, production operations and completions engineering. He is driven by performance in meeting and exceeding targets and continually innovating. Mr. Buss attended the University of Alberta and received a bachelor’s degree in chemical engineering.

Dr. Jim Wood

PHD, Director - Geoscience

James Wood has over 30 years of experience as a geologist who specializes in reservoir characterization. His Geoscience and Petroleum Engineering research focus is on developing practical applications for enhanced evaluation and economic development of gas and liquid hydrocarbons in conventional and unconventional resource plays. Wood specializes in applied research in Geosciences and Petroleum Engineering; his research has received over 100 publications and has been cited over 1,300 times.

Carter Chalmers

Director – Corporate Development

Carter Chalmers is a senior business leader with over a decade of experience in business development and corporate development, include marketing and investor relations across a wide range of mediums from mining, technology and oil and gas data solutions. He is experienced in all aspects of corporate development and investor relations for multiple start-ups and TSXV and CSE-listed companies. Prior to Avanti, Chalmers co-founded Terreliumresources as a pure-play helium company.

Chad Lerner

Director – Land & Business Development

Chad Lerner has over 23 years of experience in many aspects of energy exploration. He has extensive experience in commercial agreements, joint ventures, business development and land acquisition strategy. His experience has focused on junior and emerging energy companies having been involved in both private and public energy entities. Lerner is a graduate (1998) of the University of Calgary, holding a Bachelor of Commerce Degree with a major in Petroleum Land Management.

Ali Esmail

Engineering - Advisor

Ali Esmail has spent the past 13 years specializing in reservoir engineering including reserves evaluation, oil and gas development economics, production analysis and petroleum data analytics. His broader experience includes working in upstream and midstream oil and gas with Shell, Husky, and SemCAMS. Esmail provides a diverse perspective with 11 years of operations and process engineering experience at Dow Chemical and Nexen. He has also been recognized by the SPE and CSChE for his contributions in facilitating research between academia and industry.

Our Process

G&G team is building a geological model to understand helium migration and accumulation at a fundamental level.
Approach and methodology is similar to that used to identify and assess the Montney.
80/20 split of opportunities between “elephants” and assets similar to others in the industry.
Our proprietary system-level understanding designed to lead to larger, longer-lived resources in a different zones and accumulations (80% land target). Others are simply chasing deeper Cambrian traps & high points (20% land target).
Reviewed 30+ opportunities and high-graded to 10 for further review while simultaneously initiating the acquisition process.

Greater Knappen

Opportunity Highlight

Land Acquisition

Geology and Helium Potential

Infrastructure

Technical Team

Veteran team with exploration and development experience in both the conventional and unconventional plays
Rapid staged approach to evaluating the opportunities
Extensive risk assessment evaluation on all opportunities
Continue to look at additional opportunities to diversify Avanti’s portfolio of assets

Greater Knappen Prospect Areas

Prepared by McDaniel’s Associates July 1, 2022; WNG 11-22 pool is one of the over 10 pools in Greater Knappen Identified by the technical team; Helium Production and sales from WNG 11-22 Pool are targeted for Q1 2023.

**McDaniel’s best estimated contingent resources based on the Basel Sandstone zone only, Souis River zones have yet to be completed and evaluated; Sensitivity to Helium pricing prepared by Management.

+USD to CAD conversion rate done at $1.25.

Leader Saskatchewan

Opportunity Highlight

Leader area, located in SW Saskatchewan, contains 3 helium exploration permits for a total of ~63,000 acres. The permits were identified and acquired, based on the Company’s detailed geological models and technical assessment. SW Saskatchewan is the hub of western Canadian helium activity.

Avanti’s permits are proximal to the Wilhelm pool that produced 0.25 BCF Helium and are surrounded by recent Helium competitor activity. The targeted zones are the Devonian Souris River and Cambrian Deadwood SS with known helium concentrations up 1.4% and nitrogen up to ~98%.

Leader Prospect Areas & Timeline

Avanti is planning to acquire seismic data on numerous geological prospects within our existing permits, with the goal of confirming basement structures and firming up drilling locations. We will also continue to expand the existing land position, applying for additional permits on internally identified geological leads.

Saskatchewan is a favourable jurisdiction for helium prospecting. On Nov. 15th, 2021, the government of Saskatchewan released its Helium Action Plan, which provides policy and program commitments to support and grow the entire helium value chain. It is focused on exploration, production, innovation, processing and export infrastructure. The provincial government has also expanded the Saskatchewan Petroleum Innovation Incentive (SPII) to include helium projects (Nov 15, 2021, Gov’t. Of Saskatchewan news release).

Avanti Energy is Focused on the Exploration, Development and Production of Helium Across Western Canada and the United States

To date Avanti has completed the acquisition of several helium prospective assets within the Greater Knappen area. Avanti continues to evaluate and identify additional helium prospects in western Canada and the United States