Proposed Acquisition and Notice of General Meeting

Bluejay Mining PLC

20 June 2024

 

20 June 2024

Bluejay Mining plc / Ticker: JAY / Market: AIM / Sector: Mining

Proposed Acquisition and Notice of General Meeting

Bluejay Mining plc ('Bluejay' or the 'Company'), the AIM, FSE listed and Pink-Market traded exploration and development company with projects in Greenland and Finland, is pleased to announce it has reached agreement with the major shareholder of White Flame Energy Ltd ("White Flame") to purchase the Company in two tranches. Subject to receiving the required acceptances from the balance of the White Flame Vendors the Company will initially acquire up to 51% of the issued share capital of White Flame and will be granted a 3 year option to acquire the remaining 49% on the same terms.

Highlights:

·    Conditional acquisition of 51% of the issued share capital of White Flame for £1,402,500, payable in Bluejay shares. Bluejay will be granted a 3 year option to acquire the remaining 49%. The acquisition values the total issued share capital of White Flame at £2,750,000.

·    Highly prospective for helium, white hydrogen as well as all industrial gases, natural gas and liquid hydrocarbons.
 

·    Three granted exploration and exploitation licences adjacent to Pulsar Helium's Tunu project covering 8,429 km².        
 

·    Jameson Land has been subjected more than 5 decades of study with total expenditure estimated at approximately US$125m by ARCO as well as the Danish & Greenland Governments and White Flame. Work includes ±1800 linear km's of seismic surveys, airborne surveys, permeability & porosity studies, construction of the Constable Point airport as well as advanced production feasibility studies.

·    Basin has anomalous helium and white hydrogen occurrences, as well as working liquid-rich hydrocarbon reservoirs with potential resources estimated by management to contain in excess of +2.4 to 8.1 billion barrels of oil equivalent in place (not to a recognised standard).

·    The Project is the west mid Atlantic post rifted, onshore, eastern half of the gas and hydrocarbon bearing North Sea basin located in East Greenland.    

·    The directors believe that the total acquisition is value accretive for Bluejay shareholders.

·    The acquisition is conditional upon the approval of Bluejay shareholders. A general meeting has been convened for 10:00 a.m. on 10 July 2024 at The Washington Mayfair Hotel, 5 Curzon Steet, London, W1J 5HE.

Eric Sondergaard, Managing Director of Bluejay Mining, commented: "This transaction was designed from the outset to be a win-win for both parties. The acquisition represents fantastic value and we believe is highly value accretive to unrelated Bluejay shareholders. Importantly, shared directors and management will facilitate a smooth integration, ensuring aligned interests due to a deep understanding of both companies' projects and operations. This also leads to a significant cost savings in the acquisition process, which directly benefits all shareholders.

The project is substantial, having seen to date approximately US$125m spent on detailed and focussed work as well as local and regional infrastructure including roads and airstrip. Jameson Land represents the western half of the North Sea hydrocarbon basin and is highly prospective for industrial gasses specifically helium, white hydrogen as well as natural gasses and liquid hydrocarbons

The licences have recently been extended for an additional three years, which are followed by an additional 7-year exploration period, subject to certain preconditions and performance requirements, eventually transferring to a 30+ year exploitation license. Importantly the project has no immediate requirement for expenditure and the Company will now undertake an option study to determine the best and most appropriate path forward in terms of drilling and development now the asset is in a public company for the first time in its history."

Introduction

Pursuant to an Offer Letter (which will be posted to White Flame Vendors on or around the date of this announcement), Bluejay Mining Plc ("Bluejay" or the "Company") has made an offer to acquire up to 100% of the issued shares of White Flame Energy Ltd ("White Flame") in two tranches. Subject to receiving the required acceptances from the White Flame Vendors, initially the Company will acquire up to 51% of the issued share capital of White Flame and will be granted an option by the White Flame Vendors exercisable for a period of 3 years to acquire the remaining 49% of the issued share capital of White Flame (subject to certain conditions). Further details of the terms of the Offer Letter are set out at paragraph 3 below.

White Flame holds three exploration and exploitation licences covering 8,429 km² of highly prospective basin on the Jameson Peninsular of East Greenland ("Jameson Land Project" or the "Project").  Pursuant to Tranche 1 of the Offer Letter, the Company will acquire up to 51% of the issued share capital of White Flame in consideration for up to £1,402,500 which will be satisfied by the issue of the Initial Consideration Shares by the Company to the White Flame Vendors who accepted the Offer pro rata to their respective holdings in White Flame. This is a very significant value event for the Company and, in the opinion of the Board, the White Flame Acquisition provides a very cheap entry price into a vast natural and industrial gas field, along with potential for liquid hydrocarbon by-products.

On 24 June 2021 the Greenland Government announced it would cease issuing further hydrocarbon exploration licences. White Flame was informed at this same time that because its licences were valid and in full effect at the time of this policy change, that this new government position (this is not legislation) would not affect White Flame, its activities or its licence terms and that White Flame was free to continue to develop the Jameson Land Project peninsular as per the conditions in their existing exploration & exploitation licences. The licences have subsequently had their first sub period been extended for an additional 3 years in Q2 2024

Background to and reasons for the White Flame Acquisition

Upon completion of the White Flame Acquisition, Bluejay (to be renamed 80 Mile Plc, AIM:80M) will have expanded significantly its footprint in licences prospective for both industrial and natural gas (including liquid hydrocarbons). The change of name reflects the concept of looking into the distance or over the horizon or into the future. The Jameson Land Project has a long history of resource evaluation. Multiple parties and decades of various surveys indicate all the necessary characteristics for significant deposits of helium and white hydrogen rich industrial gases, natural gas as well as liquid hydrocarbons at the Jameson Land Project. The Company, through this proposed transaction, is aiming to position itself perfectly to potentially take advantage of global shortages for helium, white hydrogen, noble gases, as well as providing the security of a Western energy source for these. The scale of the licences at the Jameson Land Project and overall basin geometry mean that any potential discovery would likely place Bluejay in the top tier of resources / producers worldwide. This strategic move aligns with Bluejay's commitment to acquiring industrial gas and copper assets in favourable exploration jurisdictions.

The Jameson Land Project does not require any initial large capital expenditures in order to maintain the licenses. The Company is assessing several opportunities including grants and third-party funding via joint venture or similar structure to pay for project development.

Detailed information about the Jameson Land Project is provided below.

Principal terms of the White Flame Acquisition

On or around the date of this announcement the Company will post the Offer Letter to the White Flame Vendors. Pursuant to the Offer Letter the Company is offering to acquire up to 100% of the issued share capital of White Flame in two tranches.

Pursuant to Tranche 1 the Company will acquire 51% of the issued share capital of White Flame for a maximum purchase price of £1,402,500, based on a total maximum valuation of White Flame of £2,750,000 using the value of the Company's Ordinary Shares calculated on the basis of the volume weighted average price of the Ordinary Shares for a 60 trading day period prior to the date of this announcement being £0.003127 per Ordinary Share. This equates to the issue of up to 448,540,324 New Ordinary Shares to the White Flame Vendors, pro rata, to their respective holdings in White Flame in satisfaction of the Tranche 1 conditions of the White Flame Acquisition.

The White Flame Acquisition is conditional, amongst other matters, upon the following:

(i)         the Resolutions being passed at the General Meeting including the approval by Shareholders of the White Flame Acquisition; and

(ii)        notification being made to the relevant Greenlandic authorities in respect of the White Flame Acquisition.

The Company has received legal advice confirming that this transaction does not constitute a change of control with respect to ownership of White Flame given a majority of White Flame and Bluejay directors are common as are the majority of their respective shareholders. Nonetheless the Company has notified regulators and will work them as to the transaction to ensure that the company at all times complies with the terms of its licences. Post the White Flame Acquisition, White Flame will continue to adhere to its licence conditions as well as maintaining the highest social and environmental standards as well continuing as a good corporate citizen in Greenland.

The Initial Consideration Shares will be credited as fully paid and will represent 22.95 per cent of the Enlarged Issued Share Capital. The Company will also be granted a 3-year Option by the White Flame Vendors to acquire the remaining 49 per cent of the issued share capital of White Flame on the same terms as Tranche 1. The consideration for the exercise of the Option is £1,347,500 to be satisfied by the issue of the Option Shares to the White Flame Vendors, pro rata, to their respective holdings of shares in White Flame at the same price as Tranche 1. The Option will be exercisable for a period of three years from the date the Offer becomes unconditional. The exercise of the Option is solely at the Company's discretion. Shareholders should note that the Option will not be exercised if it would trigger a reverse takeover pursuant to the AIM Rules for Companies or if it were to trigger a mandatory offer pursuant to Rule 9 of the Takeover Code.

Related Party Transaction

Michael Hutchinson and Roderick McIllree are Directors of Bluejay and shareholders and directors of White Flame. Eric Sondergaard is a Director of Bluejay and a shareholder of White Flame. As a result, the White Flame Acquisition constitutes a related party transaction for the purposes of AIM Rule 14 of the AIM Rules for Companies.

The independent directors of Bluejay for the purpose of the White Flame Acquisition, Harry Ansell and Troy Whittaker, consider, having consulted with SP Angel Corporate Finance LLP, the Company's nominated adviser, that the terms of the White Flame Acquisition are fair and reasonable so far as Shareholders are concerned.

The interests of Michael Hutchinson, Roderick McIllree and Eric Sondergaard in the issued share capital of White Flame are as follows:

Director	Interest in shares of White Flame	% interest in total issued share capital of White Flame
Michael Hutchinson	2,826,587	0.63
Roderick McIllree	68,100,091	36.70
Eric Sondergaard	5,610,270	1.25

General Meeting

Notice convening a General Meeting to be held at 10:00 a.m. on Wednesday 10 July 2024 at The Washington Mayfair Hotel, 5 Curzon Street, London, W1J 5HE will be posted to shareholders today and available to view on the Company's website shortly.

INFORMATION ON THE JAMESON LAND BASIN PROJECT AND FUTURE STRATEGY

Overview

White Flame was established more than ten years ago and is the 100% owner of three large scale exploration and exploitation licences that cover 8,429 km² of the Jameson Peninsular, east Greenland. White Flame won an international open tender process for two licences and subsequently applied for and was awarded the third in 2014 and 2018 respectively. Since this time, it has maintained the licences in good standing. The licence lifespans are divided into three sub periods (3 years, 3 years & 4 years for a combined total of 10 years before moving into exploitation). White Flame recently received notification of a 3-year extension to the first sub period from the Greenlandic regulators.

The licences are also exploitation licences meaning that if certain preconditions are met and a discovery is made then White Flame has the right to move into production. The licences have approximately 10 years until expiry allowing White Flame to undertake sustained, systematic and detailed work in the entire area. In total White Flame has spent approximately £4m to date on technical work and resource estimates. However, over its history the project area has had investment in excess of US$125 million all the way to full feasibility studies (in 1989 dollars, meaning far more in today's dollar terms).

Several directors and shareholders are common between White Flame and Bluejay making the transaction far simpler to complete. Post White Flame Acquisition, the team will be broadly the same and be comprised of highly experienced arctic logistics experts, corporate and financial professionals including geological and geotechnical experts all able to provide the necessary skills to monetise one of the last remaining untested onshore industrial gases and liquid hydrocarbon plays in the world with potential for large-scale, world-class discoveries.

Greenland's position into hydrocarbon exploration and licencing

On 24 June 2021 the Greenland Government announced it would cease issuing further hydrocarbon exploration licences. White Flame was informed at this same time that because its licences were valid and in full effect at the time of this policy change, that this new government position would not affect White Flame, its activities or its licence terms and that White Flame was free to continue to develop the Jameson Land Project peninsular as per the conditions in their existing exploration & exploitation licences.

Introduction

The Jameson Land Basin is one of, if not the last, highly prospective, yet completely undrilled basins globally, but with a clear genetic link to the North Sea as well as a scale similar to many of the world's major producing regions. This claim is not without foundation, Bluejay will leverage its acquisition off a comprehensive body of work conducted by US Atlantic Richfield Company (ARCO) between 1970 and 1990 when more than US$100m was invested (1989 US dollars) in detailed exploration and evaluation activities. ARCO's work identified multiple, very large gas and liquid hydrocarbon targets.

ARCO's data reverted to the Geological Survey of Denmark and Greenland (GEUS) upon the US major's withdrawal from Greenland in 1990 with the Danish Government continuing work on the project area until 2014 when White Flame was awarded the licences. ARCO and GEUS concluded that the Jameson Land Basin contains all the essential source, reservoir, seal and trap elements to host multiple very-large-scale natural & industrial gas reservoirs in addition to liquid-rich hydrocarbons, particularly in the central and southern central regions of the basin. This data, in addition to many subsequently commissioned independent detailed assessments and reports, indicate there are multiple multi-billion-barrel-equivalent targets within the basin.

ARCO's liquid hydrocarbon resource estimates

ARCO estimated that the Upper Permian source rocks in the Jameson Land Basin generated over 40 billion barrels of liquid hydrocarbons and the Upper Jurassic source rocks generated a further 46 billion barrels. Assuming a conservative range of 10%-25% for entrapment efficiency, ARCO calculated that there could be potentially 4.0 - 10 billion barrels of liquid hydrocarbons in place within the Permian aged reservoir rocks and 4.6 - 11.5 billion accumulated within the Jurassic along with associated industrial and natural gases.

The entrapment efficiencies are based on empirical estimates of 20-30% for the East Shetland Basin and approximately 30% for the UK North Sea as estimated by BP in 1984.These estimates have been since supported by Danish governmental work on Jameson post ARCO as well as confirmation by independent specialist consultants and internal white flame management estimates.

To date though, no deep drilling has been undertaken on the project. One diamond drill hole called "Blokelv" (see Figure 4) was drilled by the Danish state survey to determine porosity of surface sediments when it was terminated after an oil filled belemnite was identified in core logging at 104m therefore there are modern independent resource or reserve figures for the project apart from the above internal numbers from ARCO.

The Licences

White Flame owns 100% of the project via a Greenlandic subsidiary, White Flame Energy A/S which in turn holds three exploration and exploitation licences covering 8,429 km² the entire basin on the Jameson Peninsular of East Greenland. The licences are exploration and production licences, are in good standing with the Greenland regulators and very recently had notification of extension of the first sub period for an additional 3 years. After the expiry of this new 3-year extension the licences will still have an additional 7 years before they automatically become exploitation licences, subject to completion of an EIA, SIA as well as a discovery being made.

The Company can confirm it is fully permitted, with documented confirmation that licences are in good standing and that the Company may continue to develop the large-scale gas and liquid rich projects in accordance with the terms and conditions as set out in their existing licences.

History

The Jameson Land Basin, encompassing Blocks 2015/13, 2015/14, and 2018/40, (see figure 1) has a rich history of exploration. ARCO and ENI held licenses for the area until 1990, conducting comprehensive field mapping, sampling programs, and acquiring ±1,800 line-km of 2D seismic data. ARCO's fieldwork, and subsequent studies by the GEUS have continually confirmed the substantial gas and liquid-rich hydrocarbon potential of the basin.

Jameson Land was subject to more than US$100m worth of detailed exploration expenditure between the 1970s and 1990's by ARCO and others which included the construction of what is now the Constable Point Airfield, East Greenland. Bluejay will leverage off this historical expenditure and infrastructure to fast track the exploration of these various critical gases, including helium, all noble gases and white hydrogen, as well as by-products of other hydrocarbon elements.

ARCO exited all global exploration activities including Greenland as global commodity prices halved between 1984 and 1986. ARCO laid off over 14,000 employees during the late 1980s recession. This culminated in the relinquishment of all its exploration assets including Jameson Land. White Flame did not fully recover from this diminution and was subsequently acquired by BP in 2000 with the Jameson project being relinquished.

Work programme completed prior to withdrawal

ARCO conducted ±1,800 kilometres of 2D seismic over multiple campaigns in Jameson Land. In addition, the company invested heavily in infrastructure including an airport, warehousing and accommodation units. At the time, the structure of the Jameson Concession licences was ARCO 33%, AGIP 33% with the balance free carried by both the Danish and Greenlandic governments.

The data set that ARCO generated from its 2D seismic work reverted to GEUS upon ARCO's withdrawal from Greenland in 1990 and in 2009, White Flame purchased this data, representing over 30 years of high-quality hydrocarbon exploration. Recent legislative changes to the Greenland Mineral Resources Act in September 2014 further facilitated White Flame's 'first mover' opportunity over Jameson Land.

Helium Prospectivity           

Helium is a rare and valuable gas with a variety of unique properties, such as being light, having a very low boiling point, and being chemically inert. These characteristics make helium indispensable in numerous high-tech and scientific applications. It is crucial for cooling superconducting magnets in MRI machines and particle accelerators, providing a non-reactive environment for arc welding, manufacturing semiconductors, and enabling high-altitude research in weather balloons. Helium is also used in deep-sea diving and for inflating airships and balloons. As a non-renewable resource predominantly extracted from natural gas reserves, the scarcity and rising demand for helium highlight its economic and strategic importance.

Figure 1 Location and White Flame licence coverage as well as other industrial gas players in the region.

Figure 2 Helium and industrial gas anomalous readings along sedimentary boundaries and basin margin

Figure 3: Cross section showing structural and stratigraphic traps, as well as helium & hydrogen generating crystalline basement

Helium is usually found in association with natural gas accumulations. The Jameson Land Basin's extensive sedimentary layers are thermally mature and rich in organic material and the presence of ancient volcanic activity contributing to the potential for helium generation and entrapment this basin has the potential to be one of the largest producers globally. Although helium is typically used as a carrier in gas chromatography, anomalous helium results have been encountered around the basin margin and along sedimentary boundaries. In addition to this, the known geology and structure of the basin are conducive to the generation of helium rich gas deposits deeper in the basin. Compared to other helium, white hydrogen-producing regions, the potential reserves in the Jameson Land Basin could position Greenland as a significant player alongside the United States, Qatar, Algeria, and Russia.

The geological characteristics of the basin suggest significant reserves of gas could occur in large previously identified reservoirs, all of which is supported by large amounts of historical data as well as geochemical profiles from previous exploration campaigns.

Several highly anomalous helium results have been collected throughout the entire area and broader region over the last 50 years, without a systematic evaluation until now.

The entire area is seen as incredibly prospective for industrial gas accumulations and the Company is optimistic that a significant discovery can be made on Jameson. Initially the Company will integrate and re-examine all historical work for industrial gasses with a site visit set for later Q3 2024 to examine these sampling sites and to take fresh samples.

White Hydrogen Prospectivity       

White hydrogen, naturally occurring in certain geological formations, is highly prized for its minimal environmental impact and cost-effectiveness compared to green and blue hydrogen. Unlike green hydrogen, which is produced using renewable energy through water electrolysis and is often energy-intensive and costly, white hydrogen can be extracted with minimal environmental disruption and far lower production costs.

In contrast to blue hydrogen, which is derived from natural gas with carbon capture and storage, white hydrogen has a negligible carbon footprint without the need for additional carbon management infrastructure. Hydrogen is used across various sectors, including transportation (fuel cells for vehicles), industry (refining petroleum and producing ammonia for fertilisers), and energy storage (balancing intermittent renewable energy sources). This makes white hydrogen a more economically viable and sustainable option, offering a cleaner alternative to fossil fuels and industrial hydrogen production methods while utilizing existing infrastructure and serving as a bridge in the transition to fully renewable energy sources.    

·    Geological Processes: White hydrogen (natural hydrogen) can be generated through water-rock interactions

·    Faults and Fractures: The extensive network of faults and fractures within the basin facilitates the migration of hydrogen from the basement to the sedimentary layers. These pathways are crucial for the accumulation of hydrogen in traps.

·    Unlike fossil fuels, which take millions of years to form, natural or 'white' hydrogen is continuously replenished.

Results obtained by previous operators identified regional sampling in and around the basin of 6 shallow samples indicating concentrations of Hydrogen of between 3-9% and two samples taken from deeper sources of between 3-7% Hydrogen.

Similar sized global analogies to the Jameson gas field are;

1.   Maracaibo Basin (Venezuela)

·    Approximate area: 8,500 square kilometres (for the primary producing region)

·    One of the world's richest liquids and gas-producing areas.

2.   Prudhoe Bay Oil Field, (North Slope of Alaska),

·    One of the largest liquids and gas fields in North America.

·    Oil field is approximately 860 square kilometres (332 square miles)

3.   Anadarko Basin (Oklahoma, USA)

·    Approximate area: 8,300 square kilometres

·    Produces liquids as well as industrial and natural gas.

4.         Neuquén Basin (Argentina)

·    Approximate area: 8,000 square kilometres (for the core producing area)

·    Produces liquids and natural gas.

5.     Cooper Basin (Australia)

·    Approximate area: 7,800 square kilometres (for the core producing area)

·    Known for industrial & natural gas, liquids as well as white hydrogen occurrences.

6.   Songliao Basin (China)

·    Approximate area: 8,500 square kilometres (for the main producing region)

·    Produces liquids, natural and industrial gas.

7.   Piceance Basin (Colorado, USA)

·    Approximate area: 7,800 square kilometres

·    Known for natural and industrial gas production.

Industrial Gas Potential

The Jameson Land Basin's geological characteristics directly influence its potential for helium, white hydrogen, noble gases (xenon, argon, krypton), and hydrocarbons. In the Jameson Land Basin and the Liverpool Land areas of central East Greenland, helium seeps have been identified and are thought to be related to exist in large concentrations as a byproduct of the deep-seated radiogenic decay of granitic basement rocks. The land adjacent to Jameson has been licensed by Canadian listed Pulsar Helium, who also applied for an industrial gas license over Jameson Land but were refused due to the pre-existence of White Flame licenses.

Noble Gases Prospectivity (Xenon, Argon, Krypton)     

Industrial gases like xenon, argon, and krypton are essential across a wide range of important economic applications. Xenon is used in high-intensity lighting, medical imaging, and as a propellant in ion thrusters for spacecraft, owing to its high atomic weight and inertness. Argon, being chemically inert, provides a protective atmosphere in welding and is used in the production of high-purity silicon and metals, as well as in incandescent and fluorescent lighting. Krypton is used in energy-efficient lighting, such as fluorescent lamps and some types of photographic flashes.

Collectively these gases are crucial for manufacturing in an advanced economy. Specifically, technology, healthcare, and space industries with their unique properties making them irreplaceable. Ensuring a reliable supply of these noble gases is vital for ongoing technological and industrial development.

·    Radiogenic Origin: Noble gases like xenon, argon, and krypton are produced through the decay of radioactive elements within the crystalline basement.

·    Migration Pathways: Like helium, noble gases migrate through faults and fractures. Their accumulation in the basin's sedimentary traps is facilitated by the impermeable shales acting as seals.

·    Trapping Mechanisms: The structural features such as anticlines and synclines create traps where these gases can accumulate, often in association with hydrocarbon reservoirs.

Figure 4 Hydrocarbon biomarking demonstrating common ancestry between geological regions.

SUMMARY FINDINGS:

In its core findings, ARCO ranked various formations within the Jameson Land Basin as having the highest potential for all gas types as well as liquid-rich hydrocarbon accumulations in the entire East Greenland and that Jameson represents approximately 50% part of the highly productive ±50% of the original area currently known as the Haltenbanken field, North Sea but expresses as an uplifted and onshore part of the basin. All historical assessments concluded that the entire area is extremely prospective, with all the necessary characteristics for the accumulation of gas and liquid hydrocarbons and that large-scale system present throughout the Jurassic and Triassic sedimentary pile with excellent source and seal and permeability characteristics of global scale with walk up drill targets.

Following early success of the North Sea, in the 1970's ARCO undertook early field studies into the western Atlantic margin (east Greenland) and concluded that the Jameson Land basin was highly prospective and was historically part of the oil rich North Sea basin. In the early 1980's a group comprising ARCO and ENI acquired ±1,800km of 2D seismic and conducted several further seasons of fieldwork, all of which pointed to the strong likelihood of a working gas and liquid system. Unfortunately for ARCO, later that same decade market conditions forced them to exit frontier exploration, including Jameson and they never recovered. They were subsequently taken over by BP in 1990.

The Geological survey of Greenland and Denmark also concluded that Jameson contains all the essential elements: source, reservoir, seal and trap, for a successful and potentially commercial reservoir of gases and liquids. In particular, the work conducted to date would imply that there is major source rock and reservoir potential within the basin and several drillable targets within a total stratigraphic thickness of 17,000 metres of the basin.

The basin remains undrilled despite direct field observation of source rocks and reservoir systems and the presence of multiple hydrocarbon seeps and a clear genetic linkage to the north sea Haltenbanken oil field. Consequently, this venture provides a unique and very exciting opportunity to explore and drill one of the few remaining frontier basins on the Atlantic margin.

GEUS, with the participation of approximately 20 companies in the region compiled all the pre-existing information into a comprehensive 'Geological Information System' (GIS) and importantly, collected huge volumes of additional data through fieldwork and core drilling. Over a prolonged exploration period, GEUS focused on the whole East Greenland Rift Basin, including Jameson to the south of the study area.

Greenland and Denmark Geological Survey (GEUS) continued detailed study over the area until in 2014 White Flame was awarded the licences and in 2015 commissioned the first non-government re-assessment of Jameson since the 1990's incorporating all historical information from ARCO, GEUS and others as well as the reprocessing of all 2D seismic using the latest technology. Results confirmed expectations, significant resource potential was identified.

In 2017 White Flame completed an airborne Full Tensor Gravimetric (FTG) and LiDAR survey over the entire licence area. Subsequent assessment of this data continued to reinforce the prospectivity of the licence area and resulted in the company successfully applying for further acreage to the north of the existing licences (2018/40) and thereby securing the entire onshore part of the Jameson basin. White Flame completed several years of multidisciplinary G&G work, integrating all available datasets, and building what became a comprehensive picture of the structural and sedimentary components of the Jameson Land Basin. This has been used to identify drillable structures and assign levels of geological risk.

Figure 5 Examples of reservoirs and geological characteristics of the Jameson Basin

This work was undertaken to fully reassess the basin and reduce the dependence on the analogue data from onshore Greenland and Norway as outlined in a subsequent section of this report and to mitigate the existing limited seismic data base to an extent. In addition, GEUS wanted to eliminate much of the geological uncertainty with regards to both liquid and gases in traps, in particularly potential post-migration loss during the Cenozoic era of uplift.

Consequently, GEUS compiled a substantial Geological Information System (GIS) including several key elements:           

·    Reprocessed existing seismic data

·    Detailed maps and terrain models

·    18,000 data and chemical samples

·    Boreholes, core samples and sedimentological logs

·    Stratigraphic cross sections

·    Photographs

The first highly detailed version of the GIS was compiled in 2009 and updated in 2011. White Flame purchased this information in 2014 when it won the open tender round for all three Jameson Land Project blocks.

Liquid Hydrocarbon and Natural Gas Prospectivity       

·    Source Rocks: The organic-rich shales from the Upper Permian Ravnefjeld Formation and Lower Jurassic formations are key source rocks. Thermal maturation of these shales generates hydrocarbons.

·    Reservoir Rocks: The Triassic and Jurassic sandstones provide excellent reservoir rocks due to their porosity and permeability, allowing hydrocarbons to accumulate.

·    Seal Rocks: Marine shales and other impermeable layers act as seals, trapping hydrocarbons in the underlying reservoir rocks.

·    Structural Traps: Anticlines, synclines, and fault traps within the basin create structural traps where hydrocarbons can accumulate.

Figure 5 Comparison between Jameson Basin and Prudhoe Bay Integrated Geological Features for All Resources    

·    Crystalline Basement: Provides a source for helium and noble gases through radioactive decay. It also plays a role in generating white hydrogen through geological processes.

·    Sedimentary Sequences: Serve as reservoirs for liquids and traps for migrating gases like helium and noble gases. The presence of organic-rich shales and porous sandstones is crucial.

·    Faults and Fractures: Essential for the migration of gases and hydrocarbons from the basement and within sedimentary layers.

·    Trapping Mechanisms: Structural traps such as anticlines and synclines, along with impermeable seal rocks, are critical for the accumulation of all these resources.

In summary, the Jameson Land Basin's complex geological structure, including its crystalline basement, sedimentary layers, and extensive fault network, creates highly favorable conditions for the generation, migration, and trapping of helium, white hydrogen, noble gases, and hydrocarbons.

Proposed Work Program and Strategic Outlook

The Company plans to further explore and develop the identified prospects, leveraging the historical data and new geophysical studies to optimize drilling targets. Bluejay remains committed to sustainable cost management while focusing on high-value assets, including significant industrial gas prospects within the Jameson Land Basin.

Figure 6 Examples of identified accumulations of gas and liquids on one section.

Conclusion

The acquisition of White Flame by Bluejay marks a strategic and transformative milestone, significantly enhancing Bluejay's portfolio with licences that are highly prospective for onshore helium & white hydrogen industrial gas along with potential for liquid hydrocarbon and natural gas in East Greenland where White Flame have identified multiple drillable targets.

This move not only diversifies Bluejay's resource base but also positions the company at the forefront of sustainable energy development. By integrating White Flame's assets, Bluejay can leverage the region's rich geological potential to meet growing global demands for both conventional and renewable energy sources, ensuring long-term growth and value creation for shareholders while contributing to the global transition towards a cleaner energy future.    

White Flame Corporate Information

White Flame Energy Limited is incorporated in England & Wales and is the holder of three exclusive Exploration and Exploitation licenses. White Flame was established in September 2013 and made a loss of £52,268 for the year ended to 31 December 2022. As at 31 December 2022, it had gross assets of £119,087. As at 31 December 2022, White Flame's total investment in the wholly owned subsidiary and holder of the Jameson Land Project, White Flame Energy A/S, totalled £3,795,187.

Defined terms used in this announcement carry the same meanings as those ascribed to them in the Company's Circular convening the General Meeting, unless the context requires otherwise.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014, as incorporated into UK law by the European Union (Withdrawal) Act 2018, until the release of this announcement.

For further information please visit http://www.bluejaymining.com or contact:

Eric Sondergaard	Bluejay Mining plc	[e-mail]
Ewan Leggat / Adam Cowl	SP Angel Corporate Finance LLP (Nominated Adviser and Broker)	[phone]
Tim Blythe / Megan Ray / Said Izagaren	BlytheRay (Media Contact)	[phone]

About Bluejay Mining plc

Bluejay is listed on the London AIM market and Frankfurt Stock Exchange and its shares also trade on the Pink Market in the US. With multiple projects in Greenland and Finland, Bluejay offers both portfolio and commodity diversification focused on base and precious metals in Tier 1 jurisdictions.

Bluejay, through its wholly owned subsidiary Disko Exploration Ltd., has signed a definitive Joint Venture Agreement with KoBold Metals to guide exploration for new deposits rich in the critical materials required for the green energy transition and electric vehicles (the Disko-Nuussuaq nickel-copper-cobalt-PGE Project). This project is Bluejay's primary focus.

Disko Exploration Ltd holds two additional projects in Greenland - the 692 sq km Kangerluarsuk zinc-lead- silver project, where historical work has recovered grades of up to 45.4% zinc, 9.3% lead and 596 g/t silver; and the 920 sq km Thunderstone project which has the potential to host large-scale base metal and gold deposits. Bluejay also owns 100% of the fully permitted Dundas Ilmenite Project under its subsidiary Dundas Titanium A/S in northwest Greenland.

In Finland, Bluejay currently holds three large scale multi-metal projects through its wholly owned subsidiary FinnAust Mining Finland Oy. The Company has identified multiple drill ready targets at the Enonkoski nickel-copper-cobalt project in East Finland. Bluejay's Hammaslahti copper-zinc-gold-silver project hosts high-grade VMS mineralisation and extensions of historical ore lodes have been proven. The drill ready Outokumpu copper-nickel-cobalt-zinc-gold-silver project is located in a prolific geological belt that hosts several high-grade former mines. In August 2023, Bluejay successfully divested its Black Schist Projects in Finland to Metals One plc in a transaction worth £4.125 million.

 

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