First Atlas Resources Extends QIMC Agreement, Launches Field Exploration on Cumberland Basin Hydrogen Licences

Renewed Partnership Boosts Hydrogen Exploration in Cumberland Basin

On July 22, 2026, First Atlas Resources announced it has extended its collaboration and technical advisory agreement with Québec Innovative Materials Corp. (QIMC) to advance exploration efforts on its natural hydrogen licences in Cumberland County, Nova Scotia. This extension enables QIMC's field crews to seamlessly transition from nearby operations to HHE’s properties without mobilization delays, utilizing existing equipment and personnel already stationed in the Advocate–Cumberland Basin area.

The extended partnership underscores a strategic alignment between the two firms along the prolific Cobequid-Chedabucto Fault Zone. HHE holds one of the largest natural hydrogen land positions in Nova Scotia’s Cumberland Basin, and this collaboration grants immediate access to QIMC’s proprietary R2G214 (Reactivated Rift and Graben Geostructure) targeting methodology and expertise in district-scale hydrogen exploration.

Bennett Hill Drilling Results Validate Surface Soil-Gas Exploration Approach

This agreement extension follows QIMC’s July 20, 2026 release of final drilling results from diamond drill hole DDH-26-04 at Bennett Hill, Nova Scotia. The hole recorded a peak mud-gas hydrogen reading of 24.3% at 707 metres depth—the highest single hydrogen measurement across QIMC’s four-hole 2026 Advocate Area drilling program. The results include six readings at or above 10% H and 46 readings at or above 1% H across the 250–818 metre interval, with sustained percent-level hydrogen concentrations up to 39 metres from the end of the hole.

Importantly for HHE’s exploration strategy, the Bennett Hill drill site was selected based on surface soil-gas hydrogen anomalies identified using the same soil sampling techniques now being applied by QIMC teams on HHE’s licences. The company interprets the elevated hydrogen readings from near-surface to end-of-hole as evidence of an active migration pathway linking a deep hydrogen source to surface anomalies. If confirmed, this supports soil-gas geochemistry as an effective tool for targeting natural hydrogen prospects.

Consistent Clean Gas Signature Supports Regional Hydrogen Model

Across all four QIMC drill holes in 2026, located 15 kilometres apart along the Cobequid-Chedabucto Fault Zone, mud-gas samples consistently showed a clean gas signature with methane near 0% and carbon dioxide at or below 0.2%. This consistency bolsters QIMC’s interpretation of a district-scale natural hydrogen system operating along this regional structural corridor.

The clean gas signature is significant as it indicates the hydrogen is not contaminated by methane or other thermogenic gases, supporting the hypothesis that natural hydrogen is generated and migrating along deep structural pathways. This finding extends the prospectivity to HHE’s adjacent licences along the same fault zone.

IOCG-Style Alteration Provides Structural Insight for Hydrogen Migration

QIMC’s core logging from DDH-26-04 identified pervasive structural and hydrothermal brecciation, hematite-rich alteration, and localized magnetite destruction textures resembling those in Iron-Oxide-Copper-Gold (IOCG) mineral systems. These preliminary textural observations, pending laboratory assays, suggest high structural permeability—breccia zones, reactivated faults, and fracture networks—favorable for fluid migration, including natural hydrogen.

This IOCG-style alteration analogy is important for HHE’s exploration because these permeable corridors are interpreted as migration pathways for natural hydrogen along the Cobequid Fault Zone. HHE’s licences lie along this corridor, and planned ground magnetic surveys aim to map these iron-oxide alteration and structural features across HHE’s exploration area.

Initial Exploration Phase Focuses on Soil-Gas Densification and Magnetic Surveys

The initial phase of HHE’s exploration program involves three components: first, infill soil-gas geochemical sampling over priority hydrogen anomalies to refine drill targets; second, ground magnetic surveys to delineate fault splays, breccia corridors, and iron-oxide alteration signatures similar to those found in DDH-26-04; third, integration of all data into QIMC’s R2G214 targeting framework to define ranked drill targets for a potential maiden drill campaign.

Currently, three QIMC field crews are actively conducting systematic exploration on HHE’s licences. Fieldwork is expected to continue through the summer 2026 season, with results released as they are compiled and validated. The rapid deployment of multiple crews leverages QIMC’s existing infrastructure in the Cumberland Basin.

Strategic Land Position Along Proven Structural Corridor

HHE’s licences are strategically located along the Cobequid-Chedabucto Fault Zone—the same corridor hosting all four of QIMC’s 2026 hydrogen-bearing drill holes. HHE holds one of the largest natural hydrogen land positions in Nova Scotia’s Cumberland Basin alongside QIMC, offering multiple kilometres of fault-zone frontage and numerous opportunities to identify and test surface soil-gas and magnetic anomalies similar to those leading to the Bennett Hill discovery.

While the geographic and structural continuity between HHE’s licences and QIMC’s drilling results provides a conceptual foundation for exploration, the company cautions that geological continuity is not guaranteed and that hydrogen concentrations on adjacent properties may not reflect conditions on HHE’s ground.

Technical Integration Using Proprietary R2G214 Methodology

QIMC’s proprietary R2G214 (Reactivated Rift and Graben Geostructure) targeting methodology has been central to its exploration success and will be applied to integrate HHE’s datasets. Developed with INRS, this framework identifies structural settings and fault-reactivation geometries favorable for natural hydrogen generation and migration across projects in Québec, Ontario, Nova Scotia, and Minnesota (USA).

First Atlas applies the R2G214 framework to its Cumberland Basin licences as well as its Matane hydrogen project in Quebec. Integrating soil-gas geochemistry, magnetic surveys, and geological data into this framework aims to produce a robust dataset to support future drill target selection and exploration programs.

Management Statement and Exploration Goals

Richard Penn, President and CEO of First Atlas Resources, commented: "Extending our collaboration with QIMC enables First Atlas to immediately apply an exploration methodology that has delivered significant hydrogen results along the Cobequid-Chedabucto structural corridor. With field crews already mobilized, we can swiftly advance systematic soil-gas sampling and magnetic surveys across our Cumberland Basin licences. Our goal is to develop a technically robust dataset to guide future drill target selection."

This statement highlights the company’s disciplined, data-driven approach to early-stage natural hydrogen exploration, emphasizing integrated geochemical and geophysical data collection prior to drilling to reduce risk and improve targeting accuracy.

Preliminary Data and Forward-Looking Considerations

The announcement includes cautionary notes regarding the preliminary nature of technical data. QIMC’s mud-gas readings are preliminary, and the IOCG-style alteration interpretation is based on textural observations pending laboratory assays. These disclosures indicate that key exploration model interpretations require further validation.

Additionally, drill results and geological interpretations cited from QIMC’s West Advocate, Eatonville Road, and Bennett Hill projects are on QIMC’s properties, not HHE’s licences. First Atlas has not independently verified these data and relies on publicly reported information. This standard caution does not alter HHE’s decision to extend exploration using the same proven methodology nearby.

Exploration Timeline and Investor Updates

Fieldwork is expected to continue through the 2026 summer exploration season, with results released as they are received and validated. Investors can expect periodic updates on soil-gas sampling, magnetic survey coverage, and preliminary data integration in the coming months. The timing of future announcements will depend on fieldwork progress and the identification of new anomalies on HHE’s licences.

The next significant milestone will be defining ranked drill targets based on integrated data, potentially leading to announcements on target selection and plans for a maiden drilling program. However, no specific timelines or drilling guidance have been provided. Investors should monitor future releases and company filings for ongoing exploration developments.