Operational and Commercial Update

Quantum advances Sagebrush planning and invests £250,000 in Herencia, maintaining strong cash reserves.

What the company is saying

Quantum Helium Limited is emphasizing operational progress at its Sagebrush Project in Colorado, with IPT Well Solutions recommending a larger-volume propped fracture stimulation for Sagebrush-1. The company frames this as a technical step forward, with execution planning underway and a Q4 2026 start targeted, subject to regulatory and logistical factors. Quantum highlights the Sagebrush programme as part of a broader Colorado drilling strategy, with additional activity at Sagebrush and Coyote Wash planned for 2027. The announcement also spotlights a £250,000 non-core investment in Herencia Resources plc, subscribing for 10,000,000 new shares at 2.5 pence each, representing an expected 9.12% stake post-fundraise. The company stresses that this investment is modest relative to its £5.505 million cash balance and is intended to generate higher returns on surplus cash while retaining capacity for core activities. Executive Chairman Carl Dumbrell's intent to purchase Quantum shares is presented as a personal vote of confidence. The tone is confident, focusing on technical readiness, financial strength, and a pipeline of operational catalysts.

What the data suggests

Quantum held £5.505 million in cash as of 30 June 2026, with the £250,000 Herencia investment representing 4.54% of that balance. The Herencia subscription covers 10,000,000 new shares at 2.5 pence per share, as part of a £500,000 raise, and would give Quantum an expected 9.12% stake in Herencia's enlarged capital. Herencia is valued at £2.74 million based on this transaction but had net liabilities of £1,926,000 and reported a £11,000 loss for the period to 31 December 2025, with pro forma net assets of £288,000 before Quantum's investment. The last quoted Herencia share price before its suspension in February 2029 was 0.01 pence. The Sagebrush stimulation programme is at the execution-planning stage, with a Q4 2026 target start, and further drilling across Sagebrush and Coyote Wash is planned for 2027. The OTC Markets quotation for Quantum is confirmed to go live on 22 September 2026 under QHELF. The Herencia investment is a related party transaction due to overlapping directorships, with independent directors and SP Angel Corporate Finance LLP deeming the terms fair and reasonable. No new production, revenue, or profitability milestones are disclosed for Quantum itself.

Analysis

The announcement is upbeat, highlighting operational planning for the Sagebrush Project, a new OTC listing, and a strategic investment in Herencia Resources. However, most operational claims are forward-looking: the Sagebrush stimulation is only targeted for Q4 2026 (subject to approvals), and further drilling is planned for 2027. The Herencia investment is approved but not yet completed, and its benefits are speculative, especially given Herencia's weak financials (net liabilities, recent loss, and prior share suspension). The language around 'a strong platform for the next stage of growth' and 'significant programme of potential catalysts ahead' inflates the signal, as no immediate production, revenue, or profitability milestones are disclosed. The cash outlay for Herencia is modest relative to Quantum's balance, so capital intensity is low. Overall, the narrative is more optimistic than the current evidence supports, with tangible progress limited to planning and investment approval.

Risk flags

• ●Operational execution risk is present for the Sagebrush stimulation programme, as commencement is contingent on regulatory approvals, service-company availability, and operational factors. Delays or complications in any of these areas could push timelines further out or impact costs.
• ●The Herencia investment carries financial risk, as Herencia reported net liabilities of £1,926,000 and a loss of £11,000 for the last period, with only £288,000 in pro forma net assets before Quantum's investment. The last share price before suspension was just 0.01 pence, and there is no guarantee of value recovery or capital appreciation.
• ●Related party transaction risk exists, since both Carl Dumbrell and Graham Duncan are directors of Quantum and Herencia. Although independent directors and SP Angel Corporate Finance LLP have deemed the terms fair, such transactions can raise governance and conflict-of-interest concerns.
• ●The operational catalysts highlighted are forward-looking and not yet realized, with no immediate production, revenue, or profitability milestones disclosed. This increases the risk that the anticipated value-creation events may be delayed or not materialize as planned.
• ●Executive Chairman Carl Dumbrell's intent to purchase Quantum shares is a positive signal but does not guarantee institutional or broader market follow-through, nor does it mitigate the underlying operational and investment risks.

Bottom line

Quantum Helium Limited is moving forward with execution planning for a larger-volume stimulation at Sagebrush-1, targeting a Q4 2026 start, while also preparing for further drilling in Colorado in 2027. The company is deploying £250,000—4.54% of its £5.505 million cash balance—into Herencia Resources plc, a non-core investment in a company with recent net liabilities and a suspended share price. This investment is small relative to Quantum's cash but carries meaningful risk given Herencia's financial position and the related party nature of the transaction. The operational progress at Sagebrush is still at the planning stage, with no immediate revenue or production milestones disclosed. The upcoming OTC Markets listing may improve US investor access but does not change the fundamental risk profile. Investors should focus on the actual commencement and results of the Sagebrush stimulation, the financial trajectory of Herencia post-investment, and any concrete operational milestones achieved in the coming quarters. The key takeaway is that while Quantum remains well funded and is progressing its technical agenda, the main catalysts are still forward-looking and subject to execution risk.

Announcement summary

(AIM:QHE) Quantum Helium Limited has provided an operational and commercial update covering the next phase of its Sagebrush Project in Colorado, its broader drilling strategy, and a strategic non-core investment. IPT Well Solutions has recommended a conventional propped fracture stimulation of the Upper Leadville interval at Sagebrush-1, with a larger-volume treatment now being modelled. Detailed execution planning is underway, and Quantum is targeting commencement of the Sagebrush stimulation programme during Q4 2026, subject to regulatory approvals, service-company availability, and operational considerations. The Sagebrush programme is part of Quantum's wider Colorado development strategy, with further drilling activity across Sagebrush and Coyote Wash being progressed for 2027. The company has received confirmation that its OTC Markets quotation will go live on 22 September 2026 under the ticker QHELF, increasing accessibility for US-based investors. Quantum has approved a £250,000 strategic non-core investment in Herencia Resources plc, subscribing for 10,000,000 new ordinary shares at 2.5 pence per share as part of a wider £500,000 fundraising, and is expected to hold approximately 9.12% of Herencia's enlarged issued ordinary share capital. This investment values Herencia at £2.74 million. As at 31 December 2025, Herencia reported net liabilities of £1,926,000 and current unaudited pro forma net assets of £288,000 before Quantum's investment, with a reported loss of £11,000 for the period to 31 December 2025. The last share price before Herencia's suspension in February 2029 was 0.01 pence. As at 30 June 2026, Quantum held cash balances of approximately £5.505 million, with the £250,000 Herencia investment representing approximately 4.54% of that cash balance. The Herencia investment is classified as a related party transaction under AIM Rule 13 due to the directorships held by Carl Dumbrell and Graham Duncan in both companies. The Directors independent of the transaction, Andrew Scott and Nigel Harvey, having consulted with SP Angel Corporate Finance LLP, consider the terms of the Herencia Investment to be fair and reasonable for shareholders. Quantum remains well funded for its core exploration, development, operating, and working-capital requirements, and the Board believes the company has a strong platform for the next stage of growth. Executive Chairman Carl Dumbrell intends to purchase ordinary shares in Quantum in the market, subject to dealing clearance and regulatory requirements. The company is progressing technical and drilling plans across Sagebrush and Coyote Wash for 2027, and the Board sees a significant programme of potential catalysts ahead.

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