D3 Energy CEO Says Helium Shortage Due to Mideast Conflict Creates Opportunity for Free State of South Africa

Rhea-AI Summary

D3 Energy (OTCQX: DNRGF) highlights growing helium demand driven by Mideast conflict and says its Free State, South Africa permits offer a strategic supply opportunity. The company owns six permits totaling almost 500,000 acres, with one permit already containing certified reserves and a Production Right application granted.

D3 plans to pursue construction of a helium and natural gas plant next year and emphasizes its high-grade helium contingent resources as a potential stable source for semiconductor and AI supply chains.

Positive

• Six permits totaling almost 500,000 acres in Free State South Africa
• One permit contains certified reserves plus significant contingent and prospective resources
• Production Right application granted and reserve certification completed last year
• Plans to commence construction next year of helium and natural gas plant

Negative

• Only one of six permits currently contains certified reserves
• Company notes it will not be a dominant supplier overnight
• Global helium supply remains fragile due to geopolitical concentration in Middle East and Russia

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HOUSTON, March 25, 2026 /PRNewswire/ -- David Casey, managing director and CEO of Australian-based D3 Energy Ltd. (ASX: D3E; OTCQX: DNRGF) said today the focus on helium opportunities in South Africa continues to grow as a result of the shortages of the gas caused by the Mideast conflict.

"Helium distributors are signaling tightening allocations of the gas to their customers," he said, noting that helium is more than simply a gas used to fill celebratory balloons.

"If there are stresses on the helium supply chain, one can expect delays in the manufacture of chips and other technologies that have become so important to the growth of AI." he said.

Helium is a critical resource for the 21^st century. "Although the most often cited uses for helium are in NRI/NMR machines and scientific applications, helium is also critical in aerospace and defense applications and is critical and irreplaceable in semiconductor manufacturing which is essential to modern life and increasingly important for the growth of AI and quantum computing," explained Casey. Last September it was announced that helium demand could double by 2035, tracking the chip production boom. "Helium is critical for our high-tech world, and it is 50 to more than 100 times more valuable than natural gas," Casey said.

This has created a serious situation in light of the current conflict in the Middle East. "The shock of the global crisis in the oil industry is also affecting helium – and has definitely called attention to how fragile the helium supply chain is," he said. "The result is that the industry is recognizing the need to look for and develop other sources not associated with, and a byproduct of, LNG operations in other parts of the world that are not as politically sensitive as the Middle East and Russia. These areas include the U.S., Australia and South Africa, specifically the Free State of South Africa, which is where D3, along with Renergen, have our helium assets."

Casey pointed to D3 Energy's South African assets as being exceptional in that they have unprecedented gas regeneration and recharge.

"We own six permit areas totaling almost 500,000 acres in the Free State South Africa. This area has a unique geological history two billion years in the making and has created what we believe is an exceptional opportunity," he affirmed.

On the back of last year's reserve certification and Production Right application being granted Casey hopes to commence construction of a helium and natural gas plant next year. "Notwithstanding that we have one of the world's largest independently certified pure helium contingent resources in the world, it is obvious we will not be a dominant supplier to the global helium market overnight. However, given our world class helium grades, and excellent economics, we believe that the Free State of South Africa and our project represent an attractive stable, high-grade, and importantly reliable source of supply for the critical semiconductor industry and AI revolution."

D3 Energy is a helium and natural gas exploration company with a primary focus on the development of its flagship asset located in South Africa's Free State Province. To date only one of the six permits contains certified reserves and a significant contingent and prospective resource which continues to deliver strong technical results that will see upgrades across the rest of the portfolio, positioning D3 Energy as a key player in the global transition. In addition to its South African operations, the company also has highly prospective helium and hydrogen permits in the Arckaringa Basin in Australia, further broadening its international footprint in critical gases.

Contact: Beverly Jedynak, beverly.jedynak@viriathus.com, 312-943-1123; 773-350-5793 (cell)

View original content:https://www.prnewswire.com/news-releases/d3-energy-ceo-says-helium-shortage-due-to-mideast-conflict-creates-opportunity-for-free-state-of-south-africa-302724058.html

SOURCE D3 Energy

FAQ

What did D3 Energy (DNRGF) announce about its Free State helium permits on March 25, 2026?

D3 Energy confirmed it holds six permits totaling almost 500,000 acres in Free State, South Africa. According to the company, one permit has certified reserves and a Production Right application was granted, supporting plans to develop a helium and natural gas plant.

Does D3 Energy (DNRGF) have certified helium reserves and regulatory rights as of March 2026?

Yes. According to the company, one permit contains certified reserves and a Production Right application was granted last year. These steps underpin D3's intention to advance toward construction of a helium and natural gas facility.

When does D3 Energy (DNRGF) expect to start building its helium and natural gas plant?

D3 Energy says it hopes to commence construction next year. According to the company, this timeline follows last year’s reserve certification and the Production Right application being granted for its South African assets.

How does D3 Energy (DNRGF) position its project relative to global helium supply shortages?

D3 Energy positions its Free State project as a stable, high-grade alternative source for helium amid supply tightness. According to the company, geopolitical disruption has highlighted the need for non-Middle East and non-Russian supplies.

What scale of resources does D3 Energy (DNRGF) claim for its South African portfolio?

D3 Energy cites one of the world’s largest independently certified pure helium contingent resources on its permits. According to the company, technical results support upgrades across the remaining portfolio over time.

Will D3 Energy (DNRGF) immediately replace global helium suppliers after development?

No. According to the company, it will not be a dominant supplier overnight. D3 expects gradual contribution to global supply given development timelines despite high grades and attractive project economics.