LILY ROCK - NATURAL HYDROGEN PROJECT

Exploration and development of natural hydrogen projects.

Longhorn entered into an arm’s length natural hydrogen lease acquisition agreement dated April 17, 2024, as amended, with Purewave Hydrogen Corp., whereby Longhorn has been granted the exclusive right and option to acquire Purewave Hydrogen's rights and obligations under the lease agreements covering approximately 519.7 net acres of land located in Kansas, USA.

As of November 7, 2024, Longhorn has successfully acquired PureWave Hydrogen. With this acquisition, Longhorn has secured five additional natural hydrogen lease agreements in Kansas, USA, encompassing approximately 829.20 acres dedicated to natural hydrogen projects.

• ‍Source
  _‍Iron-rich rocks from the Mid-Continent Rift System (MCRS), 1.1 billion year old crustal fracture

• Generation
  Water enters the system in the Rocky Mountains of Colorado and travels through the fractured basement where it interacts with the MCRS Iron-rich rocks

• Migration
  _‍The generated hydrogen is carried to the Nemaha Uplift

• Trap
  ‍_‍The Nemaha Uplift located about 65 miles each of the MCRS is the result of tectonics more than 300 million years ago

• Confirmation of Hydrogen Presence
  _‍Several wells including the Heins 1, Scott 1 and Sue Duroche 2 have hydrogen

In the broader context, the adequacy of the source potential is underscored by measured hydrogen samples extracted from wells within the play area, such as the Sue Duroche #2, Scott #1 and the Heins #1, exhibiting commercial-grade attributes. These samples validate the existence of a hydrogen source, migration systems, reservoir, and seal at the play level. The Lily Rock Prospect has been defined by structural mapping and are fault bounded closures on the western side of the Nemaha Ridge in Eastern Kansas. The play is set up by the Scott #1 well which tested between 42.6 and 56% hydrogen in high quality laboratory tests. The Sue Duroche #2 well has a reported test with a hydrogen content of over 90%. In addition, there are 11 wells with sufficient well log data in which to petrophysically analyze the reservoirs.