Desert Mountain Energy Testing Helium Potential of Its Light Gilcrease Sand Unit Oil & Gas Project in Oklahoma

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) is pleased to report that it is now conducting geological studies and gas sampling to determine the helium potential of its Kight Gilcrease Sand Unit oil and gas project in Seminole County, OK (the “KGSU”). The KGSU is situated in an area of Oklahoma which has been host to numerous helium bearing gas wells, with commercial production grades typically ranging from 0.6% to 1.4% He. While the KGSU
remains a strong target for enhanced secondary water flood production of oil, management believes the property also offers good potential for helium production. The Booch, Senora and Earlsboro Sands, from 2160 ft to 2728 ft, are regarded as highly prospective with a dense lime or anhydrite cap and close proximity to known or indicated fault structures.  The Company is presently testing gas from existing wells on site to determine presence of helium.  Commercial viability will ultimately depend upon grade, pressure and size of any helium reservoir. Results are expected shortly.

Targeting work and permitting is continuing at the Company’s Heliopolis Helium Project in Arizona’s Holbrook Basin, with good progress to date. Heliopolis remains the Company’s flagship project and management is looking forward to its upcoming drill program to test three targets in different areas in the Basin.

By way of background, The KGSU was permitted and approved by Oklahoma Corporation Commission (“OCC”)  by Order #375263 dated July 19, 1993, as an enhanced oil recovery project primarily utilizing water-flood secondary recovery operations, in an administrative proceeding which consolidated and unitized all working and royalty interests in the project.  The KGSU has had historic production estimated at 1,690,240  BO by the OCC and presently has 7 wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 API to 43 API gravity.

The KGSU comprises an area of approximately 883.7 acres, which is substantially underlain by the Gilcrease Sandstone common source of oil supply.  The KGSU leases are located 8 miles S of Wewoka directly astride State Highway 56, in a portion of the S/2 of Section 6, all of Section 7 and the NW/4 of Section 18, T6N R8E Seminole County, Oklahoma.  It is not located within an environmentally sensitive area or on a known Native American reservation. The oil-bearing pay zone was estimated by the OCC to be from 10 ft to 40 ft in width and to occur at a subsurface depth of approximately 2726 ft to 2810 ft, as reflected in geophysical logs from the Adams #1 Maverick Well drilled in the SW/4 SE/4 SW/4 of Section 7-6N-8E, Seminole County.

According to Irwin Olian, CEO of the Company, “Whilst we have been advancing our Heliopolis Project in Arizona as quickly as possible and look forward to drilling in the coming months, we saw an opportunity to increase shareholder values by examining the helium potential of our Kight-Gilcrease property in Oklahoma. Accordingly, we are now testing wells on that property for helium content and are optimistic about the potential.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:
Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Files Financials, to be Reinstated

2019-03-13 02:10 ET – News Release

As of March 7, 2019, the TSX Venture Exchange has suspended trading of Desert Mountain Energy Corp.’s securities as a result of a cease trade order issued by the B.C. Securities Commission and the Ontario Securities Commission. The company was in default by reason of the late filing of its interim statements for the period ended Dec. 31, 2018, and upon learning of this default, immediately filed these statements. The B.C. Securities Commission and the Ontario Securities Commission have now issued their revocation orders, and the company is now applying for reinstatement for trading on the TSX Venture Exchange.

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:
Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Energy’s Helium Targeting Work Ongoing in Arizona’s Holbrook Basin

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) is pleased to announce that targeting work for its upcoming 2019 helium drill program is ongoing in Arizona’s Holbrook Basin in North-Central Arizona (the “Basin”).  After preliminary review of geological, historical, cultural and environmental factors, the Company has developed seven distinct prime prospects in different areas throughout the Basin, which covers an area approximately 160 mi X 100 mi. Initially, the Company had identified 22 potential targets. The Company’s total acreage under lease in the Basin is now 39,742, of which 36,702 acres is under lease from the Arizona Department of Land and 3040 acres is under lease from the Bureau of Land Management of the U.S. Dept. of the Interior.  The Company is planning to drill three helium wells in the upcoming program in different prospects in the Basin and is in the process of further prioritizing its targets.  The wells are contemplated to be simple, vertical wells drilled to shallow depths between 1400 ft. and 3500 ft.

The Company has undertaken extensive geological studies of the Basin, including desktop review of all publicly available logs from wells drilled in the Basin for oil & gas, potash, water and other commodities, published engineering and geological reports from private companies and public sources including the University of Arizona, satellite spectral imaging studies and other materials from accredited sources such as the U.S. Geological Survey.    In addition, the Company’s technical team has carried out extensive ground studies and mapping of key geological features throughout the Basin deemed to have the potential to serve as traps for significant commercial helium reservoirs. The Company’s prime prospects are characterized by anticlinal features, monoclines and other geological structures with surface expression, together with reservoir rocks and salt and anhydrite cap rocks typical of helium traps in the Basin.  The Company initiated its exploration and land acquisition program in the Basin in the 4th quarter of 2017.

As part of its geological studies, the Company is undertaking 2-D seismic geophysical studiesof approximately 15 miles of seismic lines over five of the prime target prospects. Bird Seismic Services of Globe, Arizona, a highly experienced and well-respected local geophysics firm, is performing the seismic work under contract from the Company.  In addition, Arizona-based LA Neal Consulting, LLC, a highly-qualified specialist in cultural resources and environmental regulatory matters, is performing desktop and comprehensive archaeological field studies to ensure compliance with applicable requirements of the Arizona Department of Land, Arizona State Historic Preservation Office and Arizona State Museum.  The Company’s choice of drill targets is designed to focus on the best geological prospects in the Basin which at the same time involve minimal or no footprint on local communities, historic cultural resources or the environment.

According to Irwin Olian, CEO of the Company, “We are very excited by the progress of our technical team to date in developing highly prospective targets for our 2019 drilling program.  We hope to complete our target selection and the permitting process to enable us to drill sometime later in the second quarter of this year.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:
Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

City of Flagstaff Terminates Memorandum of Understanding for Strategic Regional Development of Helium & Hydrocarbon Resource

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) announces that the City of Flagstaff (“Flagstaff”) has terminated the Memorandum of Understanding (the “MOU”) for mutual cooperation and strategic development of helium and hydrocarbon resources in the greater Flagstaff region and Coconino County, Arizona. The newly elected City Council determined that it had not had sufficient opportunity to address community concerns and elected to serve the Company with a written 10-day termination notice in accordance with the terms of the MOU.  At the same time, the Council terminated the related license agreement providing the Company with limited  access to City-controlled ground at Red Gap Ranch for purposes of seismic studies. The license agreement will continue for a period of six months during which time the Company may complete seismic studies if it elects to do so, subject to sharing the results of such studies with Flagstaff.

According to Irwin Olian, CEO of the Company, “We are disappointed that the City of Flagstaff has determined to pull back from its cooperative strategic relationship with the Company under the MOU, but understand that development of helium resources is outside the scope of their expertise and experience and there has been little opportunity for study by the new City Council.  We hope to have the opportunity in the near future to provide additional information and make a full presentation that addresses all concerns.”

“Helium has now been designated a strategic commodity by the U.S. Government and it is a green commodity that is in great demand by the high tech community and new economy.  It is now used in hard drives of computers at the big data centers to increase efficiency by allowing the computers to run smoother and cooler, lowering energy costs. It is used in MRI’s throughout the world to cool their big magnets. It is used to cool the cores of nuclear reactors to prevent meltdowns.  It is being used by Google in its Project Loon to bring internet to remote areas all around the world through a series of helium balloons in the upper atmosphere. It is used as a lifting gas and a host of other everyday uses like bar code readers in supermarkets. Even here in Flagstaff, Northern Arizona University scientists were advocating the use of helium in autonomous vehicles as a coolant to create energy efficiency for electric vehicles, thereby increasing range. Helium is inert, non-flammable, non-combustible and is a great boon to mankind, whilst free of any of the negative side effects of other gases and chemicals.  It is so safe that divers regularly breathe it in their scuba tanks where it is mixed with oxygen.  Helium extraction is minimally invasive and is done through shallow wells with very narrow pipes rather than mining operations, so there is no mine or unsightly scarring of the ground.”

“All of the Company’s helium leases were obtained on ground leased by the State of Arizona and the U.S. Department of the Interior Bureau of Land Management.  Hence, termination of the MOU will not impact existing exploration and development plans on the Company’s leases. We do hope, however, that over time Flagstaff will reconsider its position and recognize the opportunity which helium development could create locally for significant cash flow, job and infrastructure development with little or no footprint on the environment or local communities.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:
Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

 

Desert Mountain Energy Enters Into Memorandum of Understanding with City of Flagstaff for Strategic Regional Development of Helium & Hydrocarbon Resources

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) is pleased to announce that it has entered into a Memorandum of Understanding (the “MOU”) with the City of Flagstaff (“Flagstaff”) for mutual cooperation and strategic development of helium and hydrocarbon resources in the greater Flagstaff region and Coconino County, Arizona. The initial Term is one year. Under the MOU, the parties agree to work together on a cooperative basis to evaluate potential resources and, if mutually beneficial, to develop reasonable plans for strategic development. It is agreed that the parties shall share all available relevant technical and geological data and that the Company shall fully consult with Flagstaff concerning each major exploration, drilling, development and production program in the area.

Flagstaff is the largest city in Northern Arizona and serves as the cultural, educational, economic, governmental and community center of the region, as well as the county seat for Coconino County. It comprises over 64 square miles of prospective ground for helium and hydrocarbons at the base of the San Francisco Peaks. The Company presently controls leases aggregating approximately 18,234 acres in Coconino County in its Heliopolis Project. The Company’s aggregate holdings in Arizona’s Holbrook Basin are now approximately 39,742 acres.

The objective of the MOU is to encourage appropriate economic development in the region in order to create cash flow for Flagstaff and local communities, with a view toward furthering local education, job creation, increasing local and regional infrastructure and generally increasing the well-being of the people. At the same time, maintaining and preserving the ecosystem and beautiful Northern Arizona landscape and environment as a long-term legacy is a major priority. Hence, planned economic development will be mindful of preserving the environment and not impinging significantly on the rights and customs of local indigenous communities.

Flagstaff has agreed to work with the Company on a cooperative basis to encourage access to areas identified as highly prospective for helium and hydrocarbon resources so long as those areas are not in designated national or state parks or are otherwise recognized as highly sensitive. The parties agree to work together to limit the environmental impact of the work and production programs whilst allowing for the successful extraction of valuable resources. Flagstaff has granted the Company easements over certain of its ground in order to properly effectuate the Company’s programs, subject to restrictions.

According to Irwin Olian, CEO of the Company, “We are very gratified to have gained the support of the City of Flagstaff for our exploration and development programs in Coconino County, Arizona. We look forward to working with Flagstaff on a cooperative basis to develop plans for strategic development of helium and hydrocarbon resources in the region in a manner which creates a minimal footprint and is highly sensitive to environmental, cultural and community issues. At the same time, we believe Flagstaff can be the beneficiary of significant cash flow, job and infrastructure development from development of these resources. We view this as a “win-win” situation for all concerned.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Energy Assigned New Stock Symbol For Trading On The U.S. OTC Market

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) is pleased to announce that it has now been assigned a new stock symbol by FINRA for trading of its Common Shares on the U.S. OTC Market. Effective Tuesday, January 29, 2019, the Company’s Shares will trade under the symbol DMEHF. Previously, its Shares traded under the symbol AFQMF.

According to Irwin Olian, CEO of the Company, “Our new trading symbol reflects our recent name change to Desert Mountain Energy Corp. and the new corporate direction we are taking with focus on exploration, development and production of helium, oil & gas resources in the U.S Southwest.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States.  Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing.  The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Robert Rohlfing Joins Desert Mountain Energy as Head of Technical Operations and as a Director

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce Mr. Robert Rohlfing has been engaged as Executive Vice-President, Head of Technical Operations of the Company and of its U.S. subsidiary, Desert Energy Corp., a Nevada corporation. In addition, Mr. Rohlfing has accepted a position as a member of the Board of Directors of each company.

Mr. Robert Rohlfing is a seasoned oil & gas industry operations executive with astrong geological background and over 25 years’ experience in formulating, conducting and managing successful exploration, drilling, development and production programs for oil & gas and minerals worldwide. He has conducted geological exploration programs and drilling operations for a wide variety of companies for helium, hydrocarbons, gold, silver, rare earth metals, diamonds and gemstones in diverse areas ranging from Kansas, Oklahoma, Arizona and Alaska in the U.S. to Papua New Guinea, Malaysia, Australia, Canada, Vietnam, and Cambodia.

Mr. Rohlfing’s skill set includes extensive hands-on experience managing and conducting drill programs and production operations for hydrocarbons in the U.S Southwest. He has drilled some 250 wells in his career, all of which successfully encountered hydrocarbons with the exception of two. He has developed new drilling innovations, including techniques for tight radius shallow under pressure horizontal wells. For many years, he was recognized for his unique expertise drilling horizontal wells, one of which was the shallowest and tightest radius horizontal well drilled in the United States for natural gas at the time. He has drilled a well in Northern Arizona which encountered helium and has a thorough understanding of the geology of Arizona’s Holbrook Basin and its structural features which serve as potential trapping mechanisms for commercial helium reservoirs.

Prior to joining the Company, Mr. Rohlfing was President and a founding member of a number of private oil & gas exploration companies and drilling companies based in Oklahoma, including Seminole Oil Productions, LLC., vendor of the Kight Gilcrease Sand Unit oil & gas Project to the Company. He was responsible for overall leadership, strategy, planning and management, as well as exploration, development and production activities, sales negotiations and contracts and environmental, regulatory and safety compliance matters. His broad experience provides him with the clear perspective and experience required in a fast changing, highly regulated industry.

Mr. Rohlfing enjoys lecturing at universities, including the University of Oklahoma and Arizona State University, industry roundtables, oil & gas investor seminars and elsewhere on current topics of interest to the industry. He has testified before various government agencies on a variety of industry issues and serves on the Boards of a number of not-for-profit institutions. He has served as a geological referee and expert witness in courts in the U.S. Southwest. Mr. Rohlfing presently has residences in Oklahoma and Arizona. His educational background includes studies in electrical engineering at the University of Washington, environmental geology and biological systems at Arizona State University and geology at GCC in Glendale, AZ. He has written technical papers which have been published in trade journals.

According to Irwin Olian, CEO of the Company, “We are very excited that RobertRohlfing is now joining the Company as Head of Technical Operations, he brings a wealth of hands-on experience conducting and managing oil & gas operations and exploration, including considerable experience in our area of focus, the U.S. Southwest. He comes with outstanding credentials, knowledge and experience that will be invaluable in helping guide and develop the Company’s programs.”

In connection with the engagement of Mr. Rohlfing, the Company has granted him, subject to any necessary regulatory approvals, incentive stock options to purchase 600,000 shares of the Company’s common stock. These options are exercisable for a term of three years at the price of CAD $0.21 per share and are subject to the Company’s customary vesting provisions.

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Energy Amends Terms and Provides Update on Acquisition of the Right Gilcrease Sand Unit Oil & Gas Project in Oklahoma

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to provide the following amendment of terms and update on the status of its pending acquisition of the Kight Gilcrease Sand Unit oil and gas project in Seminole County, OK (the “KGSU”). The Company entered into a definitive Purchase Agreement dated February 13, 2018, with SEMINOLE PRODUCTIONS LLC, an Oklahoma private company (“Seminole”), pursuant to which Desert Energy Corp., its U.S. subsidiary (“Desert Energy”), will acquire the KGSU subject to certain conditions (Please see PR of African Queen Mines Ltd. (“AQ”) dated February 19, 2018).

Under terms of the Purchase Agreement, Desert Energy is acquiring all leases covering the KGSU above the Base of the Gilcrease Sand Formation, subject to an aggregate gross overriding carried royalty on hydrocarbon production of 22% payable to various royalty holders (2% of which is payable directly to Seminole). Hence Desert Energy is acquiring a 0.78 Net Revenue Interest in the KGSU. In addition, Desert Energy is acquiring all wells and associated surface and downhole equipment on site, including pumping rigs, piping, storage tanks, supplies, etc., and all rights to any additional hydrocarbon bearing zones which may exist above the Base of the Gilcrease Sand Formation. The underlying leases are extendible year-to-year by maintaining minimal prescribed production levels.

By way of Amendment to the Purchase Agreement, the total consideration payable for the acquisition has now been adjusted as follows: (i) the cash consideration in the sum of U.S. $180,000 is now payable one-half on closing and one-half within one year thereafter, rather than all at once following regulatory approvals; and (ii) the Company is issuing a total of 1,440,000 Units at a deemed price of CAD $0.20 per Unit, where each Unit is comprised of one share of Common Stock of the Company (“Share”) and one Share Purchase Warrant (“Warrant”), where each Warrant permits the holder to purchase one Share for a period of 3 years from the date of issuance at a price of CAD $0.30 per Share. This represents a deemed value for the Units of U.S. $220,000 at applicable exchange rates. Said amendment does not change the overall level of consideration payable by the Company to Seminole for the acquisition, but rather adjusts the payment schedule of the cash component and crystallizes the exact number of Units issuable to Seminole on closing after taking into account the Company’s 1:4 reverse stock split earlier this year.

The Company further reports that (a) due diligence has now been completed by both parties to their satisfaction under the terms of the Purchase Agreement; (b) the respective Boards of Directors have now approved the Amendment to the Purchase Agreement and authorized all actions required to close the transaction; and (c) applications are pending for approval of the transaction by the TSX Venture Exchange and the Oklahoma Corporation Commission Oil & Gas Conservation Division (“OCC”). The parties anticipate closing the transaction upon receipt of the foregoing regulatory approvals, which are the only remaining conditions to closing.

By way of background, the KGSU was permitted and approved by OCC by Order #375263 dated July 19, 1993, as an enhanced recovery project primarily utilizing water-flood secondary recovery operations, in an administrative proceeding which consolidated and unitized all working and royalty interests in the project. It was subsequently acquired by its present owner/operator Seminole in 2003. The KGSU has had historic production estimated at 1,690,240 BO by the OCC and presently has 7 wells on site, one of which is operational. The oil produced is a light sweet crude that varies from 34 API to 43 API gravity.

The KGSU comprises an area of approximately 883.7 acres, which is substantially underlain by the Gilcrease Sandstone common source of oil supply. The KGSU leases are located 8 miles S of Wewoka directly astride State Highway 56, in a portion of the S/2 of Section 6, all of Section 7 and the NW/4 of Section 18, T6N R8E Seminole County, Oklahoma. It is not located within an environmentally sensitive area or on a known Native American reservation. The oil-bearing pay zone was estimated by the OCC to be from 10 ft to 40 ft in width and to occur at a subsurface depth of approximately 2726 ft to 2810 ft, as reflected in geophysical logs from the Adams #1 Maverick Well drilled in the SW/4 SE/4 SW/4 of Section 7-6N-8E, Seminole County.

The Gilcrease Sands are part of the Atoka Formation Series which ranges from about 160 ft to 250 ft in thickness. It is comprised of limes, sands and sandy limes and occurs at depths of approximately 2650 ft to 2950 ft. Recent geological studies and particularly drill logs from two recent wells on the KGSU , 3PB’s and Sears 18-H, suggest that the pay zone width may be significantly greater than estimated by the OCC. In addition, they suggest higher porosity and permeability than estimated. The overall Gilcrease Sand Formation, named after iconic Oklahoma oilman Tom Gilcrease, has produced in excess of 580 million BO since the early days of oil production in Oklahoma in the 1920’s and 1930’s. The KGSU forms a small portion of the historic area which is within a radius of about 30 mi from the KGSU. As the Gilcrease Sand Unit is relatively shallow at about 2800 ft subsurface, vertical wells are the most efficient manner of drilling for oil production. Most of the primary oil has been produced by conventional means, i.e. first flowing, then simple down hole tubing pumps with traditional pump jacks at surface.

The Gilcrease Formation was originally characterized as a “gas drive” formation, where the gas in the formation helped force or drive the oil out of the pore spaces within the sand layer up into the wellbore. However, original low-cost production methods in the 1920’s and 30’s unduly depleted this “drive” mechanism. The early depletion of this drive resulted in only a fraction of the original oil in place within the KGSU being produced and creates an opportunity for substantial new production by Desert Energy at relatively low cost using a modern secondary recovery techniques. Management believes the optimal recovery technique for the KGSU involves the injection of CO2 or Nitrogen into the uppermost portion of the sand layer, whilst injecting water into the lowest part of the sand. This “water-flood” technique works to squeeze and drive the oil to the producing well bores in much the same manner as the old gas drive mechanism of early days. Variants of this type of technique have been developed over a period of many decades and are now highly refined and efficient. For further discussion of the Company’s development strategy for the KGSU, please see the AQ PR dated February 19, 2018.

According to Irwin Olian, CEO of the Company, “We are happy to see the KGSU acquisition advancing toward closing. Whilst the primary focus of the Company’s activities remains exploration and development of helium resources in Arizona’s Holbrook Basin, the KGSU represents an exceptional opportunity to generate potential cash flow and add value. It is an established oil field with significant untapped potential in one of America’s most prolific historic oil producing regions. We continue to believe the U.S. Energy Sector holds out great promise in coming years.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Energy Closes $689,707 Private Placement

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce the closing of its previously announced non-brokered private placement which has raised gross proceeds of CAD $689,707. Under the terms of the private placement, the Company has issued 3,448,534 Units (the “Units”) at CAD $0.20 per Unit.

Each Unit consists of one common share of the Company and one-half of one share purchase warrant (the “Warrants”). Each whole Warrant entitles the holder to purchase one additional common share of the Company at an exercise price of CAD $0.30 until November 2, 2020. The Company paid cash finders’ fees of CAD $17,500 representing 2.5% of the aggregate proceeds of the offering. The Units are subject to a 4-month hold period in Canada expiring March 3, 2019.

Proceeds from the private placement will be utilized for exploration and development of the Company’s projects, working capital, and general corporate purposes.

According to CEO, Irwin Olian, “We are very gratified with the investor support we have received in connection with the current financing, particularly in view of the relatively weak conditions in the junior resource sector of late. Together with the $640,500 raise which we closed on July 19, 2018, we have raised an aggregate of $1,330,207 this year. This provides us with the necessary funds to move forward aggressively with our exploration programs.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Desert Mountain Energy Acquires Additional 3040 Acres of Strategic Helium Leases in Arizona’s Holbrook Basin From the U.S. Bureau of Land Management

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) has acquired an additional 3,040 acres under lease for helium, oil and natural gas in the prolific Holbrook basin of eastern Arizona. The leases were acquired at auction from the Bureau of Land Management of the U.S. Department of the Interior (BLM). The new leases are situated in Navajo county, Arizona, in relatively close proximity to the prolific Pinta dome field, which with related nearby fields produced in excess of 9.2 billion cubic feet of helium gas grading 8 to 10 per cent He from 1961 to 1976. This now brings the company’s total acreage under lease in the basin to 39,742 acres when added to the 36,702 acres already under lease from the Arizona Department of Land. The company initiated its exploration and land acquisition program in the basin in the fourth quarter of 2017.

The new leases are highly prospective for helium as well as oil and natural gas. They bring to seven the total number of distinct areas over which leases have now been secured by the company in the Holbrook basin. This latest tranche of leases adds acreage to the company’s existing Woodruff east area as well as establishing a new area called Pinta dome north. The leases are characterized by anticlinal features, monoclines and other geological structures with surface expression, together with reservoir rocks and salt and anhydrite caprocks, giving them potential to serve as trapping mechanisms for commercially significant helium reservoirs.

Approximately 2,400 acres of the new leases, comprising BLM lease parcel ID AZ-2018-09-0386, are in Navajo county in an area called the Woodruff east area, bringing to 8,828 acres the company’s aggregate lease holdings in this area. It is situated in the northeastern corner of the Holbrook basin approximately 12 miles south-southwest of the Pinta dome field. These new leases directly offset two historic blowout gas wells, NMA No. 10 and NMA No. 37, providing the company with the next permitted well locations under applicable regulations. The reported pressures encountered on each of these two blowout wells is consistent with the pressures initially found on the primary Pinta dome field wells.

Approximately 640 acres of the new leases, comprising BLM lease parcel ID AZ-2018-09-0418, are located in Navajo county on the north side of the Pinta dome field in an area called Pinta dome north. One portion of this lease parcel is located within the same section only 2,500 feet from where the historic Kerr-McGee 1-28 state well was drilled in the southeastern portion of the section. Production records show that the Kerr-McGee state 1-28 well cumulatively produced 804,961,000 cubic feet of helium over a 15-year period. At the recent BLM auction price of $279 (U.S.) per 1,000 cubic feet of crude helium, that would equate to a current gross value of approximately $225-million (U.S.). Management cautions that there can be no guarantee that future results from offsetting wells will be the same as or similar to historic results. The other lease acreage directly offsets the Kerr-McGee No. 4 state well, which cumulatively produced 48,233,000 cubic feet of helium. Records clearly show both the KM No. 4 state and KM state 1-28 wells were part of the 11 wells comprising the original Pinta dome field.

According to Irwin Olian, chief executive officer of the company: “We are very excited to have been able to acquire these new leases in the Holbrook basin from the BLM, which now brings our aggregate lease holdings in the Holbrook basin to 39,742 acres in seven discrete structural areas throughout the basin. This gives us a lot of drilling options and we are presently at work prioritizing our targets for further exploration and drilling. Our He targets are relatively shallow, permitting us to drill simple vertical wells at low cost with low profile above ground and minimal environmental impact. Consistent with our prior activities in North America and Africa, our team continues to be highly sensitive to environmental and social issues and is designing our work programs to be minimally intrusive.”

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.
“Irwin Olian”
Irwin Olian
Chairman & CEO

For more information, contact:

Irwin Olian
President and CEO
E-mail: tigertail@desertmountainenergy.com
Tel:  +1-604-899-0100
Fax: +1-604-899-0200

Carrie Howes
Corporate Communications
Email: carrie@desertmountainenergy.com
Telephone:
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.