REG - Bluejay Mining PLC - Proposed Acquisition and Notice of General Meeting

Bluejay MiningAnnouncement

20/06/2024 07:00

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RNS Number : 1550T  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:

 

                     Interest in shares of White Flame  % interest in total issued share capital of White Flame

 Director
 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 km(2)
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
(about%3Ablank)  or contact:

 Eric Sondergaard                        Bluejay Mining plc               enquiry@bluejaymining.com
 Ewan Leggat / Adam Cowl                 SP Angel Corporate Finance LLP   +44 (0) 20 3470 0470

(Nominated Adviser and Broker)
 Tim Blythe / Megan Ray / Said Izagaren  BlytheRay                        +44 (0) 20 7138 3205

(Media Contact)

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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