Royal Helium Ltd. — Audit Report / Information 2020

Apr 19, 2021

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National Instrument 51-101

This report was prepared for the purpose of evaluating the Company’s P&NG reserves according to the Canadian Oil and Gas Evaluation Handbook (the “COGE Handbook”) reserve definitions and standards, which are consistent with National Instrument 51-101 (NI 51-101). In accordance with these standards, and by reference in NI 51-101, certain tables are presented for the forecast prices and costs case, which summarize the reserves and net present values, as of December 31, 2020.

Form 51-101F2, which follows, presents a Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor.

Forecast Prices and Costs

Table 1 presents a summary of the various reserve categories. Table 2 presents a summary of net present values of future net revenue, before and after income taxes. Table 3 presents the total future net revenue (undiscounted) for the total proved and total proved plus probable reserve categories. Table 4 presents the net present value of future net revenue by product type for the total proved and total proved plus probable reserve categories. Table 5 presents a summary of pricing and inflation rate assumptions.

Reconciliation

Table 6 presents the Reconciliation of the Company’s Gross Reserves by Product Type, using forecast prices and costs.

Undeveloped Reserves

Table 7 presents the Undeveloped Reserve Vintage by Product Type, using forecast prices and costs.

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National Instruments 51-101

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Form 51-101F2

Report on Reserves Data by Independent Qualified Reserves Evaluator or Auditor

To the Board of Directors of Prairie Storm Energy Corp. (the “Company”):

1. We have evaluated the Company’s reserves data as at December 31, 2020. The reserves data are estimates of proved reserves and probable reserves and related future net revenue as at December 31, 2020, estimated using forecast prices and costs.

2. The reserves data are the responsibility of the Company’s management. Our responsibility is to express an opinion on the reserves data based on our evaluation.

3. We carried out our evaluation in accordance with standards set out in the Canadian Oil and Gas Evaluation Handbook as amended from time to time (the “COGE Handbook”), maintained by the Society of Petroleum Evaluation Engineers (Calgary Chapter).

4. Those standards require that we plan and perform an evaluation to obtain reasonable assurance as to whether the reserves data are free of material misstatement. An evaluation also includes assessing whether the reserves data are in accordance with principles and definitions presented in the COGE Handbook.

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Form 51-101F2

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Summary

1. The following table shows the net present value of future net revenue (before deduction of income taxes) attributed to proved plus probable reserves, estimated using forecast prices and costs and calculated using a discount rate of 10 percent, included in the reserves data of the Company evaluated for the year ended December 31, 2020, and identifies the respective portions thereof that we have audited, evaluated and reviewed and reported on to the Company’s management and Board of Directors:

IndependentQualifiedReservesEvaluator orAuditor	Effective Date	LocationofReserves(Country)	Net Present Value of Future Net RevenueBefore Income Taxes(10% Discount Rate)	Net Present Value of Future Net RevenueBefore Income Taxes(10% Discount Rate)	Net Present Value of Future Net RevenueBefore Income Taxes(10% Discount Rate)	Net Present Value of Future Net RevenueBefore Income Taxes(10% Discount Rate)
			Audited(M$)	Evaluated(M$)	Reviewed(M$)	Total(M$)
SprouleDecember 31, 2020CanadaTotal			Nil173,083Nil173,083

1. In our opinion, the reserves data evaluated by us have, in all material respects, been determined and are in accordance with the COGE Handbook, consistently applied. We express no opinion on the reserves data that we reviewed but did not audit or evaluate.

2. We have no responsibility to update our report referred to in paragraph 5 for events and circumstances occurring after the effective date of our report, entitled “Evaluation of the P&NG Reserves of Prairie Storm Energy Corp. (As of December 31, 2020)”.

3. Because the reserves data are based on judgments regarding future events, actual results will vary and the variations may be material.

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Form 51-101F2

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Executed as to our report referred to above:

Sproule Associates Limited Calgary, Alberta

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Sproule Associates Limited APEGA Permit Number 00417

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4613.110656.Rev1

Form 51-101F2

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Summary