QIMC Extends DDH-26-05 Drilling to Beyond 1,000 Metres and Launches In-Situ Hydrogen Characterization and Extraction Program at Bennett Hill as Seismic Further Corroborates Two Distinct Hydrogen Systems in Nova Scotia

QIMC extends Bennett Hill drilling after 30% hydrogen readings, but commercial viability remains unproven.

What the company is saying

Quebec Innovative Materials Corp. (CSE:QIMC, OTCQB:QIMCF, FSE:7FJ) is emphasizing the extension of diamond drill hole DDH-26-05 at Bennett Hill, Nova Scotia, to a planned depth exceeding 1,000 metres, following pressurized free gas and a 30.0% hydrogen reading at 413 m. The company frames this as a major milestone, marking a shift from exploration to in-situ hydrogen extraction testing. CEO John Karagiannidis highlights the presence of hydrogen, system pressure, and the hybrid free gas and hydrogeological model as key technical advances. The narrative stresses the technical detail of the system's geology, the two distinct hydrogen settings along the Cobequid corridor, and the engagement of Maritime Drilling and Strum Consulting for drilling and program management. The announcement is confident in tone, presenting the launch of the extraction program as a significant operational step, but it also acknowledges that laboratory porosity and permeability results are pending and no resource or reserve has been defined. The company does not provide financial data, cost estimates, or timelines for commercial production.

What the data suggests

The extension of DDH-26-05 is driven by strong hydrogen readings: 27.8% at 374 m and 30.0% at 413 m, with pressurized free gas reaching surface between 413 m and 416 m. DDH-26-04, completed to 818 m in July 2026, returned 16.0% hydrogen at 236 m, and 12.4% to 24.3% between 665 m and 707 m, with additional readings of 8.3% and 11.4% at 776-779 m. Both holes produced pressurized water at surface, consistent with a confined, artesian system. The company has processed 284 mud-gas samples, collected more than 10,000 soil-gas samples, over 1,000 helium and C1-C4 analyses, 63.7 line-kilometres of 2D seismic, and more than 3,500 m of core. The technical data is robust and specific, but all hydrogen measurements are from mud-gas samples, not in-situ dissolved hydrogen, and no flow rates or resource volumes are quantified. Laboratory porosity and permeability results are pending, and no resource or reserve estimate exists. The evidence supports a technically promising but early-stage project, with commercial potential entirely unproven.

Analysis

The announcement provides detailed technical and operational data on the extension of DDH-26-05 and the broader exploration program, including specific hydrogen readings and geological observations. However, the majority of the key claims are forward-looking, such as the planned extension to over 1,000 metres, the targeting of dissolved-hydrogen samples, and the engagement of contractors for future work. No resource or reserve has been defined, and laboratory results are pending, meaning commercial viability remains unproven. The company highlights a substantial capital outlay in the form of extensive sampling, seismic, and drilling, but there is no immediate pathway to revenue or resource definition. The tone is optimistic and positions the program as a significant milestone, but the actual realised progress is limited to technical drilling achievements and sample collection, not commercial or economic outcomes. The gap between narrative and evidence is moderate: technical progress is real, but commercial implications are entirely future-dated and uncertain.

Risk flags

• ●There is no defined resource or reserve at Bennett Hill, and all hydrogen concentrations are preliminary mud-gas readings; commercial viability is untested and may not materialize if in-situ or flow test results disappoint.
• ●Laboratory porosity and permeability results are pending, and the announcement explicitly states that no conclusions regarding flow rate, deliverability, or reservoir volume can be drawn until the characterization program is complete; this introduces significant technical and execution risk.
• ●The project requires successful drilling through high-pressure gas and water zones, which has already forced a pause and equipment adaptation at 416 m in DDH-26-05; operational hazards and cost overruns are possible.
• ●The company has not disclosed any financial data, cost estimates, or funding status for the current or future phases, leaving investors without visibility on capital requirements or financial runway.
• ●The announcement describes two geological hydrogen systems but provides no evidence of commercial-scale accumulations in either; the dual-target approach may dilute focus and increase exploration risk.

Bottom line

Quebec Innovative Materials Corp. is advancing its Bennett Hill project with the extension of DDH-26-05 after encountering up to 30.0% hydrogen in mud-gas samples, but all data remains at the exploration stage. The company has assembled a substantial technical dataset—over 10,000 soil-gas samples, 1,000+ gas analyses, and 3,500 m of core—but has not defined a resource, reported flow rates, or demonstrated commercial viability. The operational milestone is real, with drilling to resume imminently, but the path to value is long and dependent on pending laboratory and in-situ test results. Investors have no visibility on costs, funding, or timeline to production, and the risk of technical or economic disappointment remains high. The most important takeaway is that while hydrogen is present at high concentrations in mud-gas, the leap to commercial extraction is unproven and will require successful technical de-risking over the coming months.

Announcement summary

(CSE:QIMC) Quebec Innovative Materials Corp. (OTCQB:QIMCF) (FSE:7FJ) announced the extension of diamond drill hole DDH-26-05 at Bennett Hill, Nova Scotia, to a planned depth of more than 1,000 metres. The extension aims to intersect the principal fault imaged on seismic Line 1 at Bennett Hill and to collect dissolved-hydrogen samples at greater depths using downhole probes and in-situ sampling. Drilling will be carried out by Maritime Drilling and is scheduled to resume in November 2026. Strum Consulting of Halifax has been engaged to manage the in-situ hydrogen characterization and extraction program, including well control, hydrogeological measurement, sampling, and post-drilling testing. DDH-26-05 was previously paused at approximately 416 m after encountering pressurized free gas and a mud-gas headspace hydrogen reading of 30.0% at 413 m. Between 326 m and 416 m, the hole intersected a fault-breccia and shear package with mud-gas hydrogen readings reaching 27.8% at 374 m and 30.0% at 413 m, with pressurized free gas reaching surface between 413 m and 416 m. DDH-26-05 was collared approximately 700 m from DDH-26-04 and drilled at a dip of about −70° toward the south-southeast. DDH-26-04, completed to 818 m in July 2026, defined a layered architecture at Bennett Hill, with a fractured upper corridor to approximately 250 m returning repeated percent-level hydrogen, including 16.0% at 236 m. A competent, low-porosity syenogranite block from approximately 250 m to 640 m (RQD ~90%) acted as a confining layer, breached locally by a pressurized water zone at approximately 617 m. Below 665 m, a deep altered zone returned the hole's strongest readings, 12.4% to 24.3% between 665 m and 707 m, with an open structural break at 776-779 m bracketing 8.3% and 11.4%. Both DDH-26-04 and DDH-26-05 have produced pressurized water at surface during drilling, consistent with a connected, confined, and artesian system. Statistical analysis of 284 mud-gas samples confirmed breccia zones as the conduits, with hydrogen decreasing away from them and lower in undeformed granite. The company distinguishes two geological settings along the Cobequid corridor: a fault-hosted hybrid hydrogeological system in the Cobequid Highlands (Bennett Hill) and a conventional reservoir-and-seal system in the Lowlands and Cumberland Basin. The company's multi-gas pilot production pathway in Cumberland County, Nova Scotia, is built on more than 10,000 soil-gas samples, over 1,000 independent helium and C1-C4 analyses, 63.7 line-kilometres of 2D seismic, gravity, magnetic and radon-thoron surveys, and more than 3,500 m of core, with ongoing testing at DDH-26-05. Laboratory porosity and permeability results on DDH-26-04 and DDH-26-05 core are pending. No resource or reserve has been defined for the Bennett Hill project. John Karagiannidis is President & Chief Executive Officer of Quebec Innovative Materials Corp.

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