Pulsar Helium Proposes 1,000% Acreage Expansion in Minnesota with Quantum Acquisition

Pulsar’s 1,000% Minnesota acreage expansion: Quantum Hydrogen deal explained

Pulsar Helium has signed a non-binding term sheet to acquire up to 100% of Quantum Hydrogen Inc., adding 59,100 gross acres of non-hydrocarbon gas mineral rights in Minnesota. The land sits in St Louis and Itasca Counties, to the west of Pulsar’s flagship Topaz project. If completed, the deal would boost Pulsar’s Minnesota footprint by circa 1,000% and extend its hunt for primary helium in a familiar geological setting.

This is an all-share transaction with no cash outlay, which fits neatly with Pulsar’s stated priority: preserve cash to advance Topaz into production while building a longer-term exploration pipeline nearby.

What has been announced and why it matters

The company plans to acquire 80% of Quantum initially, with an option to take the remaining 20% within 18 months. Quantum holds exclusive mineral rights for non-hydrocarbon gases over 59,100 gross acres. That is a big step-up in potential running room, adjacent to an area where Pulsar already has momentum.

Why it matters: the new ground is considered prospective for helium and hydrogen and shares key geological traits with Topaz. Pulsar believes it can apply what it has learned at Topaz – on helium generation, migration pathways and structural traps – to a conventional sedimentary reservoir setting here. In short, it is a scale-up of the same playbook, in the same region.

Geology in plain English: why the new Minnesota acreage looks interesting

Topaz is a helium discovery associated with fractured Archaean basement rocks. The newly targeted acreage sits in a non-hydrocarbon-bearing sedimentary basin over that same type of basement. The model is straightforward: helium generated in basement granites migrates upwards and accumulates in overlying sedimentary reservoirs, which are then sealed by mudstone and siltstone layers.

That is useful for Pulsar because it reduces the learning curve. The company’s recent technical work at Topaz has focused on mapping where helium is generated and how it moves. Applying that understanding across a much larger licence position could make future exploration more efficient and lower risk compared with stepping out into a brand new basin.

Deal terms and key numbers at a glance

Target	Quantum Hydrogen Inc.
Assets	Exclusive non-hydrocarbon gas mineral rights over 59,100 gross acres (St Louis & Itasca Counties, Minnesota)
Acreage impact	Circa 1,000% increase to Pulsar’s gross Minnesota acreage
Initial acquisition	80% of Quantum
Initial consideration	US$400,000 in new Pulsar shares, issued in five monthly tranches of US$80,000 each
Pricing mechanism	30-day VWAP before each tranche (subject to TSXV minimum price rules)
Remaining 20% option	US$400,000 in Pulsar shares within 18 months, on the same terms
Share lock-up	Four-month-and-one-day hold period (TSXV)
Exclusivity	120 days to complete due diligence and sign a definitive agreement
Status	Non-binding term sheet; completion subject to due diligence, definitive docs, regulatory approvals and any required shareholder consents

How this fits Pulsar’s strategy and funding priorities

Pulsar is adamant that Topaz remains front and centre. The company recently reported strong testing at the Jetstream #1 appraisal well and intends to start a multi-well drilling campaign in late September 2025. By structuring the Quantum acquisition entirely in shares, management keeps cash free for Topaz workstreams that are intended to unlock near-term production.

Importantly, Quantum is early stage. It has no revenue and no reserves or defined resources. Management does not expect any material impact on Pulsar’s financials or resource base in the near term. Think of this as a low-cost, option-style land grab next door to the main event.

Topaz and Jetstream #1: useful context for the new land

• Jetstream #1 reached total depth of 5,100 feet in January 2025, after an initial 2,200 feet in February 2024.
• Helium concentrations of up to 14.5% were reported, comfortably above the widely cited 0.3% economic threshold.
• In August 2025, the well delivered a peak flow of approximately 1.3 million cubic feet per day of dry, helium-rich gas using a wellhead compressor.
• A multi-well drilling programme at Topaz is set to start in late September 2025 to define the reservoir and advance towards production.

These datapoints underpin the geological rationale for expanding westwards. If Topaz can demonstrate commercial deliverability, similar rocks nearby become compelling targets.

Positives, risks and my read on valuation impact

What looks positive

• Scale at low cost: a 1,000% acreage increase for a headline consideration of US$400,000 in shares is efficient. The optionality to buy the remaining 20% later for US$400,000 spreads risk.
• Geological continuity: same basin architecture and source rocks as Topaz, allowing Pulsar to leverage recent subsurface learnings.
• Cash preserved: no cash component, which aligns with pushing Topaz towards first production.

What to watch and potential downsides

• Non-binding status: only confidentiality, exclusivity, costs and governing law are binding today. The deal may not complete.
• Early-stage assets: Quantum has no revenue, reserves or defined resources, so near-term financial impact is expected to be minimal.
• Dilution mechanics: consideration shares are priced off the 30-day VWAP before each tranche. The exact number of shares is not disclosed and will vary with market price.
• Related party touchpoint: a Pulsar director is a minority shareholder of Oscillate plc, Quantum’s parent. He abstained from deliberations, which is good governance, but investors should note the connection.

Timeline and catalysts to keep on your radar

• Next 120 days: due diligence and definitive agreement for the Quantum acquisition.
• Regulatory steps: TSXV acceptance and any required shareholder consents.
• Operational: Topaz multi-well campaign starts in late September 2025. Further well results, flow tests and resource updates would be key to momentum.
• Ownership step-up: optional purchase of the remaining 20% of Quantum within 18 months, subject to progress.

Bottom line: my take for retail investors

This looks like a sensible bolt-on. Pulsar is doubling down on what is working – Minnesota helium in a proven geological setting – without distracting cash away from Topaz. The price tag is modest, paid in shares, and the structure keeps risk in check with an 80% initial stake and an option on the rest.

The flip side is that none of this is de-risked yet. The term sheet is non-binding, the assets are early stage, and there is no near-term uplift to resources or revenue. For sentiment, the bigger driver remains Topaz, where 14.5% helium and a 1.3 mmcf/d peak flow suggest real potential. If Topaz delivers, this enlarged acreage could become a meaningful second act. If not, this is cheap exposure rather than a costly mistake.

Net-net, I view the announcement as incrementally positive: it reinforces the Minnesota thesis, preserves cash for the main project, and expands the opportunity set at a low entry cost. Execution at Topaz will dictate how valuable this land grab ultimately becomes.