Gulf Energy Limited (ASX: GGE) (Grand Gulf or the Company) is pleased to provide shareholders with the following summary of its activities during the June 2022 quarter.

bottomhole pressures of 2300psi in line with virgin pressure modelling at the Doe Canyon analogue.

Agreement partner Paradox Resources LLC ("Paradox"), allowing a commercial discovery at Jesse#1A to be monetised with minimal time and Capex.

Suite 1G, 56 Kings Park Road, West Perth, WA 6005

The maiden potentially company-making helium exploration well Jesse#1A spud on 24th of April, and the after the well returned helium gas at a grade of up to 0.65% to surface and a bottomhole pressure of 2300psi in line with virgin pressure modelling at the neighbouring Doe Canyon analogue, the Jesse discovery was announced on 29 June 2022. The helium concentrations compare favourably to Doe Canyon which has an average grade of 0.4%.

Petrophysical interpretations indicate a gross gas column of 203ft (ASX announcement 30 May 2022) supporting a structural closure estimated at 4 to 5 times the neighbouring Doe Canyon analogue, which has an estimated helium recovery of 3 - 5 bcf/yr (Air Products market cap US$52b). The annual world-wide helium market, a multi-billion dollar market, is around 6 bcf/yr.

Aztec 980 Drill Rig on Jesse#1A well site in SE Utah

Red Helium Project Working Interest Increased to 70%

Under the terms of the operating agreement the Company has satisfied the earn-in requirements for the first well by contributing the first US$1.5 million in the program and has increased its working interest from 55% to 70% in its majority-owned incorporated JV company Valence Resources LLC ("Valence") which operates the Red Helium project

( ASX announcement 20 July 2022). The Company has the right to increase its working interest in Valence to 85% by contributing the first US$1.5 million to each of two further Red Helium project wells.

Second Red Helium project well planned for Q3/Q4 2022

Multiple locations on the large contiguous area that the Jesse discovery structure represents, together with other mature independent prospects in the Red Helium project, are being ranked and prioritised with the Company funded for a second

Red Helium project well scheduled for Q3/Q4 2022 ( ASX announcement 20 July 2022). The Company has already received a permit approval for a second Red Helium project well location (ASX announcement 14 June 2022).

Helium Market - Brief Update

Recent sharp rise in helium prices on the back of US supply disruptions, Russian sanctions and increased demand. Ongoing supply-side issues including the outage at the US government's BLM Cliffside facility (up to 10% global supply) and the Amur facility incident (10 - 20% global supply) have put extreme pressure on the global market, and in particular the US spot market, with the company advised of US spot prices in excess of US$2,000/mcf for research grade helium (160mcf tube trailer). The BLM facility was re-started in June 2022, however significant supply shortages are forecast into 2023. Retail prices have increased more than 200% in the UK, and many suppliers in the US are still in Force Majeure.

About the Red Helium Project

The Red Helium Project provides exposure to the burgeoning helium industry in a prolific proven helium-producing region, the Four Corners Area, that comprises:

Grand Gulf Energy Ltd - Suite 1G, 56 Kings Park Road, West Perth, WA 6005, T + 61 8 9226 2209, E info@grandgulf.com

Stylised cross section with Jesse#1A location, Earp and Kit prospects, Doe Canyon helium field / historic gas

Jesse#1A location in the Red Helium project AMI with local pipelines / gas transport route to the Lisbon Helium Plant.

Grand Gulf Energy Ltd - Suite 1G, 56 Kings Park Road, West Perth, WA 6005, T + 61 8 9226 2209, E info@grandgulf.com

Jesse#1A location and additional independent prospect drill locations in the Red Helium project AMI with Doe Canyon

Analog helium field (Air Products market cap US$52B)

recovery (flooding) from Paradox's Lisbon Oil Field

Paradox Resources Lisbon Valley Gas Processing Plant.

Grand Gulf Energy Ltd - Suite 1G, 56 Kings Park Road, West Perth, WA 6005, T + 61 8 9226 2209, E info@grandgulf.com

Maiden Prospective Helium Resource (pre-Jesse#1A)

On 8 December 2021 the Company announced that Sproule Energy Consulting Ltd. ("Sproule") had completed the maiden Prospective Resource Report for the Red Helium Project located in the Paradox Basin, Utah USA. Sproule is an independent resources and reserves certification specialist with extensive experience in helium and the Paradox Basin.

Sproule has confirmed a P50 10.9 billion cubic feet (BCF) Prospective Resource over gross leased acreage and P50 of

7.4 BCF on a net acre basis to Valence. The Sproule Prospective Resource calculation is based on the current acres held by incorporated joint venture company Valence Resources LLC (Valence) at 8 December 2021.

The Company plans a resource update based on the data gained from Jesse#1A post the flow test result.

Gross to Valence - (28,046 gross acres)

Net to Valence - (18,959 net acres)

Net to GGE - (earning 85% of net Valence)

The estimated quantities of helium that may potentially be recovered by the application of a future development project relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal is required to determine the existence of a significant quantity of potentially moveable helium.

GGE now has a 70% interest in Valence with a right to secure a further 15% interest (total of 85%) on the following terms:

Drilling first well prior to 30/09/2022

(cost overruns to be split 70/30)

Drilling second well prior to 30/09/2023

(cost overruns to be split 77.5/22.5)

Drilling third well prior to 30/09/2023

(cost overruns to be split 85/15)

1 Sproule as announced on ASX on 8 December 2021. The Company is not aware of any new information or data that materially affects the information

included in the referenced ASX announcement and confirms that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Grand Gulf Energy Ltd - Suite 1G, 56 Kings Park Road, West Perth, WA 6005, T + 61 8 9226 2209, E info@grandgulf.com

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Grand Gulf Energy Limited published this content on 29 July 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 July 2022 03:23:04 UTC.