Desert Mountain Energy Acquires Additional 12,219 Acres of Strategic Helium Leases in Arizona’s Holbrook Basin, Including Zone with Original Discovery Well

Approximately 3379 acres of the new leases are in Coconino County in the same highly prospective area as the Company’s initial 12,256 acres under lease. This area, which now comprises an aggregate of 15,635 acres, has been named Heliopolis. It has two large anticlinal features, excellent cap rock and is characterized by the prolific Coconino sandstone reservoir rocks. It is a prime focal point of the Company’s exploration efforts in the Holbrook Basin.

Approximately 6400 acres of the new leases are in Navajo County in an area called the Great Basin Zone, which includes Arizona’s original helium discovery well (Great Basin Oil #1) which was drilled in 1927 approximately 4 miles SW of the town of Holbrook and 14 miles E of Heliopolis in the Holbrook Basin. That well was an oil test drilled into the Tapeats Sandstone (Cambrian Age) at a depth of 3500 feet with a reported gas flow containing 1.12% helium. Helium was of little interest at that time so the well was not produced and the offsetting ground was not explored. The Great Basin Zone encompasses 3 anticlinal features and is viewed as a high priority target for exploration and drilling.

The remaining approximately 2440 acres of the new leases are also in Navajo County in an area called the Winslow Zone. They include offsetting properties to the Webb Resources Well 25-1 drilled 5 miles N of Winslow, which reported numerous showings of helium from a depth of 27 feet. This well was drilled directly into a major fault structure expressed on surface and the Company is targeting a SW-NE trending zone just off the E side of the fault following the strike and dip. This Zone has 11 stratigraphic zones prospective for helium, oil & gas.

According to Irwin Olian, CEO of the Company, “Our new leases acquired in Arizona’s prolific Holbrook Basin include Arizona’s original discovery well for helium and other showings of helium in drill logs. They expand Heliopolis and also give the Company two additional zones to the East, the Great Basin Zone and the Winslow Zone. We are very excited with our property package in the Holbrook Basin and see this as a great opportunity for the Company.”

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. In addition, the Company owns the Yellowjacket Gold Project in Atlin, British Columbia, which it has recently 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.