First Atlas Resources Corp. Adopts QIMC'S R2G2(TM) Model as QIMC'S Successive Drill Results Continue to Strengthen Hydrogen System Along the Nova Scotia Corridor

Executive Summary

• First Atlas Resources Corp. incorporates QIMC’s R2G2™ exploration model after drill results (DDH‑26‑01 & DDH‑26‑02) confirm hydrogen in structurally controlled zones of the Cobequid‑Chedabucto corridor.
• The company proposes to settle up to $225,500 of indebtedness by issuing up to 1,503,334 common shares at $0.15 per share, subject to CSE approval.
• An option grant of 2,600,000 options (exercisable at $0.155) was made to directors, officers and consultants, including 1,000,000 options to CEO Richard Penn.

Key Details

• Drill Hole DDH‑26‑01: Hydrogen concentrations exceeded the GA5000 analyzer’s upper detection limit across multiple fault‑related intervals.
• Drill Hole DDH‑26‑02: Recorded the highest relative hydrogen concentrations to date; values increased with depth toward the borehole bottom.
• R2G2™ Model Integration: Incorporates regional tectonics, reactivated faults, structural repetition/compartmentalization, soil‑gas anomalies and geophysical signatures to guide future drilling across First Atlas’s Nova Scotia land package.
• Soil‑Gas Survey Results (West Advocate): Hydrogen up to 5,558 ppm reported (QIMC press release, 25 Aug 2025).
• Upcoming Drill Program: Will target reactivated fault zones, graben boundaries, geophysical anomalies and areas with coincident soil‑gas signals using the R2G2™ framework.
• Debt Settlement Proposal: Up to $225,500 of outstanding debt settled for up to 1,503,334 common shares at $0.15/share; securities subject to a 4‑month‑plus‑1‑day hold and CSE approval.
• Option Grant Details:
• Total options granted: 2,600,000 (exercise price $0.155, two‑year term).
• Insider allocations:
  • Richard Penn – 1,000,000 options
  • Krystan Pineo – 100,000 options
  • Kwaku Ashong – 100,000 options
  • Mathieu Piche – 100,000 options
• Regulatory Notes: Settlement and option grants require CSE approval; the company has not independently verified all technical data from QIMC.

Notable Quotes

“The strengthening hydrogen concentrations observed across successive drill holes—particularly the increase with depth in DDH‑26‑02—significantly advances our understanding of the system developing along this corridor.” – Richard Penn, President & CEO, First Atlas Resources Corp.

“QIMC's drilling results represent a watershed moment not just for our program, but for natural hydrogen exploration across the entire Cobequid‑Chedabucto corridor.” – John Karagiannidis, President & CEO, QIMC

Materiality Assessment: Non‑Material – Positive (the release provides operational updates and modest financing actions without indicating a material impact on the company’s financial position).