This Molecule Set to Rewrite the Rules on Global ENERGY Production

Key Concepts

• Natural Hydrogen: Hydrogen found naturally in the Earth's crust, distinct from manufactured hydrogen (e.g., green hydrogen).
• Green Hydrogen: Hydrogen produced using renewable energy sources like hydropower or wind turbines.
• Stimulated Hydrogen: Hydrogen extracted from ultramafic rocks using proprietary technology developed by Element One and Columbia University.
• Ultramafic Rocks: Igneous and metamorphic rocks rich in magnesium and iron, making up about 10% of the Earth's crust.
• Critical Minerals: Minerals essential for modern technologies and economic security, such as nickel, cobalt, and Platinum Group Metals (PGMs).
• Solution Mining: A process used to extract minerals from ore bodies by dissolving them in a liquid.
• Accumulation Play: A geological environment where natural hydrogen accumulates under a dome, similar to traditional oil and gas deposits.
• Tripartite Approach: Element One's strategy combining geological hydrogen exploration, critical minerals extraction, and carbon sequestration.
• Bankable Feasibility: A study that demonstrates the technical and economic viability of a project to the point where it can secure financing.
• Market Cap: The total market value of a company's outstanding shares.
• Public Float: The number of shares of a company that are available for trading by the public.
• OTCQB Listing: A quotation service for over-the-counter (OTC) traded stocks in the United States.

Natural Hydrogen: A Superior Energy Source

The discussion centers on natural hydrogen as a critically important commodity that receives insufficient attention. Brad Kitchen, CEO of Element One Hydrogen and Critical Minerals, highlights its significance for investors.

Uses and Investor Appeal of Hydrogen

• Energy Source: Hydrogen is a potent energy source. A kilogram of hydrogen contains the same energy as a gallon of gasoline.
• Cost Comparison:
  • Current gasoline price in the US: Approximately $3.60-$3.65 per gallon.
  • Green hydrogen cost: Around $7.80 per kilogram. While environmentally friendly, its cost is prohibitive compared to traditional energy.
  • Element One's natural hydrogen cost: Estimated at 50-70 cents per kilogram, verified by the USGA. This offers a significantly lower cost base than traditional energy markets.

Types of Natural Hydrogen and Element One's Approach

Element One focuses on a "tripartite approach" that integrates geological hydrogen exploration, critical minerals extraction, and carbon sequestration. The company differentiates itself by focusing on three distinct types of natural hydrogen:

1. Accumulation Play Hydrogen:

   • Process: Similar to traditional oil and gas extraction, this hydrogen accumulates naturally over millions of years under geological domes.
   • Companies Involved: Companies like Col and Hera are actively drilling for this type of hydrogen, primarily in Kansas.
   • Element One's Involvement: Element One is also pursuing this strategy in a different location, with an upcoming announcement regarding their "accumulation play."

2. Extraction from Old Oil and Gas Wells:

   • Process: Utilizing existing infrastructure from abandoned oil and gas wells to extract hydrogen. This approach leverages established infrastructure and can potentially generate additional oil and gas.
   • Element One's Involvement: Element One plans to employ new technology to extract hydrogen from these legacy wells.

3. Stimulated Hydrogen (Proprietary Technology):

   • Process: This is Element One's core differentiator, developed in collaboration with Columbia University. It involves a proprietary technology to extract hydrogen from ultramafic rocks.
   • Significance of Ultramafic Rocks: These rocks constitute 10% of the Earth's surface and are widely distributed.
   • Byproducts: The extraction process from ultramafic rocks also yields critical minerals like nitrogen and nickel.
   • Element One's Advantage: Element One is the only company currently focused on extracting hydrogen from ultramafic rocks, giving them a unique market position.

Critical Minerals Extraction as a Byproduct

Element One's process for extracting natural hydrogen, particularly from ultramafic rocks, offers a significant revenue stream through the production of critical minerals.

Process and Importance of Domestic Production

• Solution Mining: Critical minerals like nickel, cobalt, and PGMs can be produced through solution mining as a byproduct of hydrogen extraction.
• Revenue Generation:
  • If nickel content in ultramafic rocks is around 2%, the revenue generated from nickel solution extraction can exceed the revenue from hydrogen.
  • This makes critical minerals a substantial revenue driver, not just a minor addition.
• Geographic Focus: Element One's current projects are in British Columbia and Alaska, focusing on Canadian and US assets. However, the technology is globally applicable.
• Strategic Importance: Bringing domestic production of critical minerals online is crucial due to their recent spotlight and importance for modern technologies and economic security.

Element One's Company Overview and Strategy

Element One is structured around four key pillars: technology, projects, implementation, and joint ventures.

The Tripartite Approach Explained

• Technology: Element One has acquired proprietary technology from Columbia University for hydrogen extraction from rocks. This technology is not licensed but owned by the company.
• People: The company boasts a team of leading geologists and technicians experienced in hydrogen extraction.
• Projects: Element One has secured the necessary projects and geological expertise to source the correct ultramafic rocks for research and field testing. This contrasts with other companies that may source materials from external suppliers.
• Implementation: The company is focused on the practical application and field testing of its technologies.
• Carbon Sequestration: While not detailed in this excerpt, it is mentioned as a component of their tripartite approach.

Leadership and Team Expertise

• Brad Kitchen (CEO): Brings extensive experience in taking projects from grassroots to bankable feasibility and has a track record of significantly increasing market capitalization for companies. Examples include:
  • Windfall Lake Project (Gold): Took from zero to bankable feasibility in 5 years, sold to Osisko for $1.6 billion.
  • Gold Tailings Company: Increased market cap from $3 million to $100 million in approximately one year.
• Kyler Hardy (Chairman): Described as an aggressive and successful entrepreneur.
• Tim Johnson (CEO of the Company): Instrumental in outlining the strategy for natural hydrogen and Element One's benefit from projects and technology.
• Rishma Gatakoto (Columbia University Professor): Developing the hydrogen extraction technology.
• Algra Hosford Shire: A top geologist in natural hydrogen, particularly in the accumulation play sector.

Financial Position and Capital Raising Strategy

• Shareholder Base: A tight shareholder base, with management and strategic investors controlling approximately 80% of the 34 million outstanding shares.
• Public Float: A small public float of about 3-4 million shares.
• Marketing and Exposure: The company is actively rebranding (name change, new trading symbol) and initiating marketing efforts to increase exposure.
• Capital Raising Plan:
  • Targeting $4-5 million in the next 3-4 months.
  • Aiming for an additional $20 million by the end of 2026.
  • Funds will cover claim acquisitions and research and development.
• Dilution Management: Element One aims to acquire projects and grow without excessive dilution of the company's shares.

Catalysts and Future Outlook

Shareholders can anticipate frequent news flow and catalysts throughout the remainder of 2025 and into 2026.

Expected News Flow and Developments

• Weekly Updates: Information is expected to be released on a weekly basis due to the company's multiple operational silos.
• Key Areas of News:
  • New projects.
  • Technology benchmarks and advancements.
  • Developments in oil and gas extraction technology.
  • Acquisition of new claims for accumulation plays in the US.
  • Onboarding of new team members.
  • New hard rock projects and their results.
• Snowball Effect: The company anticipates a compounding effect of positive news and developments as they grow.
• Industry Impact: Element One aims to educate the market about natural hydrogen and its own role in the emerging industry.

Growth Strategy and Market Cap Targets

• Primary Goal: To communicate the company's intrinsic value, which is perceived to be significantly higher than its current market cap (approximately $5 million).
• Short-Term Target: To reach a market cap of $20-30 million by the end of March.
• Long-Term Growth: Continued growth driven by asset acquisition and achievement of technology milestones.
• US Market Expansion: Plans to obtain an OTCQB listing to increase accessibility for US investors.
• European Market Engagement: Building on existing European investor interest with targeted outreach.
• Strategic Investor Focus: Expanding the shareholder base with targeted, focused investors who can help disseminate the company's message.

Element One positions itself as a leading entity in the natural hydrogen environment, aiming to capitalize on the significant market opportunity. The company plans to provide updates on its progress in the coming months.