Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy

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Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
Investor Presentation
Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
This presentation has been prepared as of January 2021           for statements of historical fact, information contained       beverage and alcoholic beverage markets, risks relating
(the “Presentation”) for information purposes only and           herein constitutes forward-looking statements and              to the inherent uncertainties and challenges present in
does not constitute an offer or solicitation to sell shares      includes, but is not limited to, the (i) completion of,        forecasting market and industry outlooks, regulatory

                                                                                                                                                                                               OTC: ARGYF
or securities in Avanti Energy Inc or Terrelium Resources        and the use of proceeds from the sale of shares being          risks and uncertainties, risk relating to the ability of the
Crop. (“Terrelium Resources Avanti Energy” or the                offered hereunder; (ii) the expected development of            Company to enter new markets in a timely manner.
“Companies”) or any affiliated or associated company.            the Companies' business, projects and joint ventures,
This presentation does not purport to contain all of the         including the estimated timelines for achieving                The information contained in this Presentation is
information about the business of the Companies. None            milestones in connection therewith; (iii) execution of the     submitted to the parties on a confidential basis, and

                                                                                                                                                                                               TSX: AVN
of the information or analyses presented are intended            Companies' vision and growth strategy, including with          is for discussion purposes only and for the exclusive
to form the basis for any investment decision, and no            respect to various jurisdictions in Canada and the United      use of those persons to whom it is transmitted by the
specific recommendations are intended. Accordingly,              States; (iv) sources and availability of financing; and (v)    Companies, its directors, officer, and agents, and it is
this Presentation does not constitute investment advice          identification of potential commercial and distribution        not to be reproduced or used, in whole or in part, for

                                                                                                                                                                                               Avanti Energy - Investor Presentation
or counsel or solicitation for investment in any security.       partners. Forward-looking statements are provided to           any other purpose whatsoever without the express
This Presentation does not constitute or form part of,           allow potential investors the opportunity to understand        prior written permission of the Companies. No securities
and should not be construed as, any offer for sale               management’s beliefs and opinions in respect of the            commission or similar regulatory authority has reviewed
or subscription of, or any invitation or offer to buy or         future so that they may use such beliefs and opinions as       this Presentation. Although forward looking statements
subscribe for, any securities, nor should it or any part of it   one factor in evaluating an investment.                        contained in this Presentation are based upon what
form the basis of, or be relied on in any connection with,                                                                      management of the Companies believes are reasonable
any contract or commitment whatsoever. The Company               These forward-looking statements are not guarantees            assumptions, there can be no assurance that forward-
expressly disclaims any and all responsibility for any           of future performance and undue reliance should not            looking statements will provide to be accurate, as
direct or consequential loss or damage of any kind               be placed on them. Such forward-looking statements             actual results and future events could differ materially
whatsoever arising directly or indirectly from: (i) reliance     necessarily involve known and unknown risk and                 from those anticipated in such statements. Forward-
on any information contained herein, (ii) any error,             uncertainties, which may cause actual performance              looking statements contained in the Presentation are
omission or inaccuracy in any such information and (iii)         and financial results in future periods to differ materially   made using assumptions applicable as of the date of
any action resulting therefrom. Currency references are          from any projections of future performance or                  this presentation, and the Companies undertakes no
to Canadian Dollars (CAD $) unless otherwise indicated.          result expressed or implied by such forward-looking            obligation to update forward-looking statements if
                                                                 statements. Many of these risks are outside of the             circumstances or management’s estimates or opinions
Certain information set forth in this Presentation contains      Companies' control and include, without limitation, risks      should change except as required by applicable
“forward-looking information” and “forward-looking               associated with access to capital, reliance on key and         securities laws. The reader is cautioned not to place
statements” under applicable securities laws. Except             qualified personnel, risks related to competition in the       undue reliance on forward-looking statements.
Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
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 -
Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
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.

                                                     100 times more valuable than Natural gas Natural
                                                     Gas $2 per Mcf Helium $200-$400 per Mcf
Avanti Energy - Investor Presentation

                                                     Global shortage, it’s estimated the supply will not
                                                     keep up with the demand for the next 20 years

                                                     Canada has large reserves in the world. A handful
                                                     of producers are extracting helium in Saskatchewan

                                                     Industry demand CAGR of 11% each year through 2037

Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
Fastest Growing Uses

                      MEDICAL INDUSTRY                                  CRYOGENICS                                          WWW                                    ELECTRONICS
                    Helium is mandatory for MRI                  Helium is the only element that               High Speed Internet, fibre optic          Electronics & Semiconductors require
                    machines which require 800                    can come close to reaching                   cables must be manufactured               helium to be used at different stages
                litres of Helium. Heliox mixtures in                     absolute zero.                         in a pure helium environment                   in the production process.
                       respiratory treatments.

                                                MOBILE PHONE                                   COMPUTERS                                     CAR AIR BAGS
                                               If a device contains a                 Helium filled hard drives offer 50%             Helium is the gas of choice for
                                              semiconductor, it must                  higher storage capacity with 23%               effecting the near instantaneous
                                                   contain helium.                         lower operating power.                     deployment of airbags in cars.

Avanti Energy - Investor Presentation                                                                                                                                                            -5-
Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
Fueling the High Tech Future

       THE REACTOR                         HELIUM COOLING                         WORLD’S LARGEST                           FIBRE OPTIC CABLE
       OF THE FUTURE                    PARTICLE ACCELERATORS                  DILUTION REFRIGERATOR                         MANUFACTURING

Superconducting coils are cooled with    At the European Organization for       Quantum computing relies on            After fiber-optic glass is drawn into fine
  helium They are used everywhere         Nuclear Research (CERN), liquid       incredibly low temperatures.         strands, it is shielded with helium while the
 strong magnetic fields are needed.       helium also plays a central role.                                           cladding is applied to prevent the newly
                                                                                 Goldeneye is IBM's internal        formed glass surface from reacting with the
 Wendelstein 7-X, the world's largest    It is cooling the superconducting     codename for the world's largest         contaminants present in ambient air.
 stellarator device which is used to      magnets that keep particles on        dilution refrigerator, which will
 evaluate the main components of           their track. CERN operates the       house a future 1,000,000 qubit          Helium can also be used during the
  a fusion power plant, uses helium     biggest "refrigerator" in the world.          quantum processor.               bubbling process for molten glass to
              for cooling.                                                                                            improve refining since it has the fastest
                                                                                                                            bubble rise time of any gas.
Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
Where is
Helium Found?

                                                           OTC: ARGYF
   Helium is found by drilling wells, similar to natural

                                                           TSX: AVN
   gas. It is formed from radioactive decay of heavy
   elements like Uranium and Thorium

                                                           Avanti Energy - Investor Presentation
   Helium can be trapped deep under hard non-
   porous rock where it cannot escape. Gravity can’t
   trap helium from escaping the atmosphere

   Our focus is on helium-bearing non-hydrocarbon
   sources in Western Canada and Montana

   Once helium is found it is purified by Cryogenic,
   Membrane or Pressure Swing Adsorption
   processes that can produce ultra-pure helium

Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
U.S. Helium

                                        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
Avanti Energy - Investor Presentation

                                        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.

Investor Presentation - TSXV: AVN | OTC: ARGYF - Avanti Energy
Historical Pricing

                                                                           OTC: ARGYF
                           Historical Crude Helium Prices

                                                                           TSX: AVN
US $/mcf

                                                                           Avanti Energy - Investor Presentation
           BLM Crude He Sale Prices (US $/mcf)              Source:
           BLM Auction Sale Prices (US $/mcf)            Bureau of Land
           USGS Grade A price estimates (US $/mcf)      Management, USGS

"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                               GENGA NADARAJU                                      DR. JIM WOOD                                           CHAD LERNER
            MBA, CEO                                       VP – Subsurface                                     PHD, Director - Geoscience                             Director – Land & Business Development
            Chris Bakker has over two decades of           Genga Nadaraju holds over two decades of            James Wood has over 30 years of experience             Chad Lerner has over 23 years of experience in many
            experience in oil and gas, most recently       diverse professional experience in the oil and      as a geologist who specializes in reservoir            aspects of energy exploration. He has extensive
            working as a commercial negotiator with        gas industry that includes asset exploitation,      characterization. His Geoscience and Petroleum         experience in commercial agreements, joint ventures,
            Encana/Ovintiv for major facilities and        strategic planning, investor relations, and         Engineering research focus is on developing            business development and land acquisition strategy. His
                                                                                                               practical applications for enhanced evaluation         experience has focused on junior and emerging energy
            pipelines in the Montney gas play. His         technical innovation. Most recently, she was
                                                                                                               and economic development of gas and liquid             companies having been involved in both private and
            expertise includes all facets of Natural       the lead technical advisor for the Montney          hydrocarbons in conventional and unconventional        public energy entities. Lerner is a graduate (1998) of the
            Gas Exploration like land acquisition,         gas field and has extensive experience in           resource plays. Wood specializes in applied research   University of Calgary, holding a Bachelor of Commerce
            exploration, drilling, well production and     natural gas Geology, Geophysics & Reservoir         in Geosciences and Petroleum Engineering; his          Degree with a major in Petroleum Land Management.
            facility integration and construction. Chris   Characterization. Nadaraju brings strong            research has received over 100 publications and has
            also has start-up experience taking a
            tech gaming company from conception to
                                                           project management and organizational skills
                                                           with the ability to interact effectively with all
                                                                                                               been cited over 1,300 times.
                                                                                                                                                                      KEVIN MORISETTE
            market as well as acting as an advisor for     stakeholders within the organization, both                                                                 P.GEO, Senior Geologist
            start-ups. Prior to Avanti, Mr. Bakker co-     internally and externally.                          CARTER CHALMERS
            founded Terrelium Resources as a pure-                                                                                                                    A professional geologist with over 15 years of diverse
                                                                                                               VP – Corporate Development                             exploration, development, and operational experience
            play helium company.
                                                           ALI ESMAIL                                          Carter Chalmers is a senior business leader            across the Western Canadian Sedimentary Basin. Prior
                                                                                                               with over a decade of experience in business           to joining Avanti Energy, Kevin was previously with Penn
            ROB GAMLEY                                     P.ENG, VP - Engineering
                                                                                                               development and corporate development, include         West Exploration and Gain Energy.
                                                           Ali Esmail has spent the past 13 years              marketing and investor relations across a wide range
            President                                                                                          of mediums from mining, technology and oil and         Kevin received his Bachelor of Science Degree from the
                                                           specializing in reservoir engineering
                                                                                                               gas data solutions. He is experienced in all aspects   University of Calgary and is a member in good standing
            Rob Gamley’s career spans over a               including reserves evaluation, oil and gas
                                                                                                               of corporate development and investor relations        of APEGA, CSPG and the CSEG.
            decade in corporate finance and                development economics, production analysis
                                                                                                               for multiple start-ups and TSXV and CSE-listed
            consulting, providing corporate strategy       and petroleum data analytics. His broader
            and communications services to public          experience includes working in upstream
                                                                                                               companies. Prior to Avanti, Chalmers co-founded
                                                                                                               Terreliumresources as a pure-play helium company.
                                                                                                                                                                      MORGAN KEANE
            companies across a broad range of              and midstream oil and gas with Shell, Husky,                                                               Geologist in Training
            industries including biotech, oil and gas      and SemCAMS. Esmail provides a diverse
            and natural resource exploration and           perspective with 11 years of operations and         RICHARD BALON                                          Ms. Keane has over 4 years of relevant experience as a
                                                                                                                                                                      Geologist in Training in the energy industry where she
            development. He has been a board               process engineering experience at Dow
            member of several TSXV-listed companies        Chemical and Nexen. He has also been                B.S.C, P. Geoph, Senior Geophysicist                   has developed diverse skills working in a wide variety of
                                                                                                                                                                      environments including US Basins, unconventional plays,
            and brings extensive capital markets           recognized by the SPE and CSChE for his             Richard Balonhas over 30 years of experience in        conventional plays, oil sands and offshore exploration.
            experience and a considerable network          contributions in facilitating research between      the Western Canadian Sedimentary Basin. He is a        She has been involved with a handful of oil and gas
            of both retail and institutional contacts.     academia and industry.                              technically focused geophysicist with a proven track   companies, most recently working at CNOOC Int.
            Gamley graduated in 1998 with a Bachelor                                                           record working extensive analysis of 2D and 3D         (formally Nexen). Ms. Keane is a University of Calgary
            of Science from the University of British                                                          seismic data across some of the largest oil and gas    graduate (2017) with a Bachelor of Science with a major
            Columbia.                                                                                          fields in Canada. Balon holds a B.Sc. Geophysics       in Geology, minor in Geophysics and a petroleum
                                                                                                               from the University of Manitoba and is a member of     concentration.
                                                                                                               APEGA (P.Geoph.), SEG, CSEG, CSPG.

Avanti Energy - Investor Presentation                                                                                                                                                                                              - 11 -
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.
Avanti Energy - Investor Presentation

                                        ▶   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,

                                                                                                         OTC: ARGYF
▶   ~9,500 acres in two blocks.

▶   Knappen land package comprised of ~7,000 acres acquired at the recent
    March land sale.

                                                                                                         TSX: AVN
▶   Aden is a 4 section block situated over a closed structural high.
    ▶ > 75m structural relief. Ideal for trapping helium.

▶   Drill stem tests (DSTs) in wells in and around the newly acquired land package
    indicate reservoir quality rock in the Cambrian and Ordovician zones.

                                                                                                         Avanti Energy - Investor Presentation
▶   Gas Analysis in multiple zones
    ▶ Helium, up to ~ 2.18%.
    ▶ Nitrogen, up to ~98%.

▶   Multiple target intervals in the Devonian and Cambrian sections.
    ▶ Large potential resource in place.


                                                     Alberta   Crown Open rights
                                                               Helium gas data : Devonian and Cambrian
                                                               Helium gas data : Devonian
                                                               Core Data
                                                               Flow and build-up data


Avanti Energy - Investor Presentation

                                        Indentifed Structure
                                        ▶   Structure based on a shallow horizon.
                                            ▶ Limited deep well penetration.

                                        ▶   4 section block situated over a closed structural high.
                                            ▶ > 75m structural relief.
                                            ▶ Ideal for trapping helium.
                                            ▶ Present over most of the acreage.


                                                      OTC: ARGYF

                                                      TSX: AVN
▶   2,749 Acres of continuous land located in
    Musselshell county Montana. Avanti holds the
    mineral and surface rights to the property.

                                                      Avanti Energy - Investor Presentation
    Pursuing additional properties nearby.

▶   High grade helium wells drilled near by in the
    1970’s by USGS in the Maison formation yielding
    commercially viable helium at today’s prices.

▶   In process of completing detailed geological
    report and identify basement structures with
    helium producing potentials Deadwood and
    Madison formation.

Avanti Share Capital
                                                           Issued                             44,871,188

                                                         Warrants                             1,905,300
                                        3,190,000 @$0.20 | 430,000 @$0.60 | 285,300 @$1.00

                                                          Options                             2,895,000
                                               1,500,000 @$0.30 | 1,395,000 @$1.45

                                                      Fully Diluted                           49,671,488

                                                     Current Cash                            ~$8,000,000

Avanti Energy - Investor Presentation                                                                      - 16 -


           Investor Relations

          100, 750 11 Street SW
          Calgary, AB, T2P 3N7
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