DESERT MOUNTAIN ENERGY SECURES PERMIT FOR THIRD WELL, BLUE SKYED IN MULTIPLE STATES

Vancouver, British Columbia DESERT MOUNTAIN ENERGY CORP.  (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) From the President of the Company.

The Company is pleased to announce that the Arizona Oil & Gas Conservation Commission has granted Desert Mountain Energy Corp. the permit to drill the third exploratory helium well in NE Arizona.  This well is located approximately 70 miles west of the two successful wildcat helium wells the Company drilled then completed in August of this year.  This well is situated on a known anticlinal feature which the Company ran proprietary seismic and other geophysical studies pertinent to locating specific trapping mechanisms required to have commercial quantities of helium.

The Company has contacted the drilling contractor and is now in queue for the drill rig in addition to the open hole logging and cementing companies.  The Company anticipates having the well drilled in December weather permitting, followed with perforating and flow testing being completed as expediently as possible, weather permitting. 

After anticipated completion of the third well, the Company anticipates undertaking additional work on both of the first two wells then performing additional flow testing on both wells.  This test data will be added into the previous flow data to secure a more accurate understanding of anticipated flow rates and volumes from which final design criteria for the processing plants will be based. 

The Company, in addition to securing its OTCQB, listing is now listed with both Mergent/Moody’s Manual and Blue Sky Data Corp. and is recognized in over 40 states and US territories.  The Company is a foreign private issuer and claims the exemption pursuant to Rule 12g3-2(b) under the Securities Law Act of 1934.

Additionally, the Company is pleased to announce the addition of Edward Coalson, Ph.D. as our “Qualified Reserves Evaluator”.  Ed received his B.S Geology from Cal State University, M.S. Geology from University of Wyoming, Ph.D. Geology from Colorado School of Mines.  His experience in Petrophysics led to the discovery of many significant oil and gas fields in Colorado and Wyoming. Ed’s experience has been further amplified with teaching courses including Colorado School of Mines.    

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Finance

(604) 617-5448

E-mail: Don@desertmountainenergy.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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 ANNOUNCES FULL OTCQB BOARD LISTING

Vancouver, British Columbia – DESERT MOUNTAIN ENERGY CORP. (TSX.V:DME, OTCQB:DMEHF, Frankfurt:QM01) is pleased to announce that it has been granted OTCQB listing status in the U. S.  This move will help facilitate easier access for brokers and new shareholders in the United States.

Also, the company has made significant progress in regards with the decision for placement of the final helium processing facilities and solar power generation plant in NE Arizona.  Upon a purchase agreement being signed, it is anticipated that a phase one environmental study will be conducted, prior to closing on the industrial property we are looking at.

Additionally, the board voted to grant incentive stock options to the most recently appointed board members, the CFO and to two other individuals who perform work for the company in its corporate offices.  These options were granted on October 28, 2020 and are subject to any necessary regulatory approvals.

Said options were granted under the Company’s Stock Option Plan and are exercisable for a period of 3 years at a price of CAD $1.76 per Share.  They are subject to the Company’s customary vesting policy in accordance with the Company’s rolling stock option plan and guidelines established by the exchange.

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.  We are an equal opportunity employer.

We seek safe harbor

  

“Robert Rohlfing”
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Finance

(604) 617-5448

E-mail: Don@desertmountainenergy.com

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.                               

A REPORT FROM THE CEO: ROBERT ROHLFING

 

A REPORT FROM THE CEO: ROBERT ROHLFING

Monday, October 26, 2020

 

3RD QUARTER REVIEW

The third quarter has been very significant for the Company:

  • Received drill permits for wells State 10-1 and State 16-1.
  • Successfully completed both wells, significant pay zones were discovered in both holes.
  • Sampling proved significant concentrations of helium in both wells with excellent well pressure, low CO2 concentrations.
  • Purifying the helium will not involve any costly or problematic issues due to the mix of gases in our wells.
  • Completed a $13 million financing priced at $1.60.
  • Added 3 new board members to the team.
  • Began design work on a solar-powered processing facility

 

VERTICAL INTEGRATION

The Company is planning on becoming a vertically integrated helium producer selling directly to end users. Offtake discussions that have taken place over the last 2 years with helium processors made it evident that over 40% of our revenues would go to support their “processing system”. Prices for finished product have varying price points that range from $490 per mcf for shield gas to $3,200 per mcf for extreme high purity gas. We believe that the shareholders should benefit from the greater revenue achieved by finishing our own helium.

 

PRODUCTION

The Company plans to be in production starting the 4th quarter of 2021. To achieve this goal, we will undertake the general following items:

  • Finish permitting for a third well in the western part of the Holbrook basin to prove-up additional low CO2, high nitrogen content raw gas.
  • Drill third well in early November, secure gas analysis and flow rates
  • Contract with Gas Engineering firm to begin design of both well site Nitrogen stripping and final processing facilities.
  • Contract with power engineering firm to finalize solar generation site requirements. Goal is to become as close to carbon neutral as possible
  • Finalize & sign contracts with surface owners, for both power generation site and processing facilities.
  • Begin archeological studies and reviews for both well sites 4-6 and seismic acquisition
  • Exercise options for up to additional 42,000 acres of leases or some portion thereof.
  • After further gas analysis and flow testing, provide possible end users with options for purchase agreements and execute them when most advantageous for DME.
  • Secure Tractor trailer rigs as required by agreements.
  • Train plant personnel and secure additional contract drivers for trucking aspects

 

DME’S 4-YEAR PLAN:

We plan to start producing from 4 to 6 wells the fourth quarter of 2021. Our success in raising $13 million gives us the money to rapidly move forward with the first phase of our plans. Full development of our land package is expected to take approximately 4 years.

The 4-year plan to full production:

  • Total number of wells projected to be 50-55
  • Total projected capital expenditures including all drilling and infrastructure over 6 years is $45,000,000
  • Upgrade helium to end users will result in a shorter payback period.
  • Signing contracts with end users will stabilize future price swings in the helium market and give us a competitive edge.

We realize this is a very ambitious plan, however, with the success of the first 2 wells proving our geological model, it can be achieved. There is a lot of work and planning to be done along with expanding our team.

 

ABOUT DESERT MOUNTAIN ENERGY CORP:

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US. The company is primarily looking for elements deemed critical to the green energy and high technology industries. We are an equal opportunity employer.

We seek safe harbor

Robert Rohlfing, CEO

 

For more information, contact:
Don Mosher, Vice President of Finance 604-617-5448

E-mail: don@desertmountainenergy.com

The TSX Venture Exchange & IIROC has not reviewed and does not accept responsibility for the adequacy or accuracy 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 $4,000,000 PRIVATE PLACEMENT

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01)  has closed its non-brokered private placement previously announced on Sept. 14, 2020, raising gross proceeds of $4,000,000. Under the Offering the Company issued 2,500,000 units (the ” Units “) at a price of CAD $1.60 per Unit. Each Unit is made up of one common share of the Company and one share purchase warrant (each, a ” Warrant “), with each whole Warrant allowing the subscriber to purchase one additional common share for a period of two years at a price of CAD $2.00. The expiry of the warrants may be accelerated at the sole discretion of the Company by written notice or news release if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 2,500,000 Common Shares in the Offering as well as 2,500,000 whole warrants.

The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.

In connection with the Offering, the Company paid an aggregate finders fees of (seven) 7% percent of the total gross proceeds of the Offering in cash and/or equivalent in Units along with 7% in finder warrants at the Offering price. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.

According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world. Particularly considering the extremely challenging market environment.”

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 Signs Engineering Contract for Helium Enhancment Facilities

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 signed a contract for the engineering gas feed study with SIGIT, with offices located in Denver, CO. to design the solar power operated processing facilities for the helium operations in NE Arizona. The company currently plans on starting helium production in the fourth quarter of 2021.

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 $9,125,000 Private Placement

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 closed it’s non-brokered private placement previously announced on 09/11/20 (the “Offering”), raising gross proceeds of CAD $9,124,899. Under the Offering the Company issued 5,703,062 units (the Units”) at a price of CAD $1.60 per Unit. Each Unit is comprised on one common share and one share purchase warrant (each, a “Warrant”), with each whole Warrant allowing the subscriber to purchase one additional Common Share for a period of two years at a price of CAD $2.00. The expiry of the Warrants may be accelerated at the sole discretion of the Company by written notice if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 5,703,062 Common Shares in the Offering as well as 5,703,062 whole Warrants.

The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.

In connection with the Offering, the Company paid an aggregate finders fees of (five) 5% percent in cash and or equivalent in units, along with 3% in finder warrants, exercisable at a price of $2.00 per share for a period of two years from closing, on a portion of the Offering. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.

This private placement contains related party transactions. These transactions are exempt from the valuation and shareholder exemption requirements of Multilateral Instrument 61-101 pursuant to, in addition to other sections, ss.5.5(a) and 5.7(1)(a) respectively of that instrument. A material change report was not filed prior to Closing of this placement due to the uncertainty of knowing, in advance, in addition to other potential changes, when and if the placement would close, if final TSXV approval would be obtained or if the material details related to the placement and related parties taking part would change.

According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world, particularly considering the extremely challenging market environment.”

Any securities referred to herein will not nor have been offered nor registered under the U.S. Securities act of 1933 (The “1933 ACT”) and may not be offered or sold in the United States or to a person in the absence of such registration or an exemption from the registration requirements of the 1933 ACT.

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 ANNOUNCES PRIVATE PLACEMENT

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it is proceeding with a non-brokered private placement offering to raise up to CAD $4.0 Million.  Under the terms of the private placement, the company will offer for sale up to 2,500,000 units (the “Units”) at CAD $1.60 per unit.  This offering is in addition to the previously announced non-brokered private placement that was announced on September 11, 2020 for up to 5,625,000 units.  This placement is as a result of strong interest from potential investors in the previously announced private placement.

Each unit will consist of one Common Share of the Company and one share purchase warrant (the Warrants), where each whole Warrant will allow the subscriber to purchase one additional share of the company for a period of two years from the date of the closing at a price of $2.00.  The Expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the Common Shares on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten consecutive trading days.  Proceeds from the private placement will be utilized for exploration and development of the Company’s helium projects, as well as working capital and general corporate purposes.

The Company may, in its discretion, pay a finder’s fee in cash or warrants of up to 7% and finder’s warrants 7% of the total gross proceeds of the offering in units, where applicable.  The Units will be subject to a 4-month hold period.  The Company anticipates closing the private placement prior to October 15, 2020, subject to adjustment if deemed appropriate.  The Company has engaged Cormark Securities Inc. as its financial advisor in connection with this transaction.  The private placement is subject to the approval of the TSX Venture Exchange.

According to Robert Rohlfing, CEO of the Company, “This additional placement moves us quickly to reach our overall goal of generating income from our first wells beginning in the fourth quarter of 2021.”

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 ANNOUNCES PRIVATE PLACEMENT

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it is proceeding with a non-brokered private placement offering to raise up to CAD $9.0 Million.  Under the terms of the private placement, the company will offer for sale up to 5,625,000 units (the “Units”) at CAD $1.60 per unit.  The company may at its sole discretion increase the maximum of the offering by up to 5% to a maximum of 5,906,250 units.

Each unit will consist of one Common Share of the Company and one share purchase warrant (the Warrants), where each whole Warrant will allow the subscriber to purchase one additional share of the company for a period of two years from the date of the closing at a price of $2.00.  The Expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the Common Shares on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten consecutive trading days.  Proceeds from the private placement will be utilized for exploration and development of the Company’s helium projects, as well as working capital and general corporate purposes.

The Company may, in its discretion, pay a finder’s fee of up to 5% of the total gross proceeds of the offering in units, where applicable.  The Units will be subject to a 4-month hold period.  The Company anticipates closing the private placement on or about September 30, 2020, subject to adjustment if deemed appropriate.  The Company has engaged Cormark Securities Inc. as its financial advisor in connection with this transaction.  The private placement is subject to the approval of the TSX Venture Exchange.

According to Robert Rohlfing, CEO of the Company, “We are looking forward to moving ahead quickly with a goal of generating income from our first wells beginning in the fourth quarter of 2021.”

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 ANNOUNCES SIGNIFICANT HELIUM PERCENTAGES IN TWO NEW WELLS IN ARIZONA

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 tested significant Helium percentages in its new exploratory wells in Arizona.

The company has completed its independent gas analyses on both of its exploratory wells in Arizona, the State 10-1 and State 16-1.  In the 10-1 well the company perforated 5 feet of a limey sand in the lower Pennsylvanian-aged Formation out of which the company feels, based on open-hole logs, is a possible productive 28-foot zone with resistivities from 38 to 73 ohms.  Well logs delineate a drop in the porosity in the mid portion of this zone, consequently it feels that the additional interval under the current perforations would require separate sets of perforations to produce.   Initial shut-in pressure was 900 psi and through the multi-choke flow test, flowing pressure increased to 940 psi on a 1-inch choke with a coefficient of 25.76, equivalent to a non-corrected flow rate of 24,214 MCFGPD.  The average gas analysis showed Helium 7.1321%, Nitrogen 77.0837%, CO2 4.0183% Methane 2.6512% and other assorted minor gases.

The 16-1 well also perforated 5 feet of sand in the Supai Formation out of which the company feels, based on open-hole well logs, is a possible 61-foot productive zone.  Again, similar to what was found in the 10-1 well, there are two stringers of very dense dolomitic lime dropping the porosity.  Additional perforations would be required to access these intervals of possible production.   Initial shut-in pressure was 372 psi and through the multi-choke flow test, flowing pressure decreased and then quickly stabilized at 368 psi on a 3/8” choke with a coefficient of 3.40, equivalent to a non-corrected flow rate of 1,251.2 MCFGPD.  The average gas analysis showed Helium 4.0904%, Nitrogen 90.2742%, CO2 0.0063%, Methane 3.5535% and other assorted minor gases.

Based on normal accepted industry operation procedures, the company at this time and prior to further engineering and flow testing, would entertain a possible daily flow rate of between 4,100 and 5,600 MCFGPD based on aggregated production from both wells. The Company has compared these wells to the closest established and documented helium production located approximately 35 miles NE in the Pinta Dome Field.  Note: Desert Mountain Energy’s wells have been completed in members of the Pennsylvanian-aged Formations which are lower in depth than the helium productive Permian-aged Coconino Formation found at Pinta Dome (AZOGCC archives).  Production comparisons with a number of wells from the prolific Pinta Dome Field, specifically the Kerr-McGee Barfoot State#1, clearly shows that large artificial formation stimulation was not required to exceed the original projected calculated reserves by over 500%, over a 13-year production life (Olukoga 2016, AZOGCC Barfoot #1 well files).

The Pinta Dome, Navajo Springs Unit, and East Navajo Springs Unit, in total, comprise only 26 total productive wells (Conley, J.N. 1974).  The majority of the production came from Pinta Dome and was from only 11 wells, (AZOGCC production records, Olukoga 2016).   Those wells averaged about 8% helium across the field with a high initially noted at 10.78% in one well. The thicknesses of the pay-zones varied greatly from 2’ to just over 103’. Consequently, the overall perforated zones can be misleading, but after eliminating the single thickest pay- zone completion of 73 feet, (Eastern State 1-28, AZOGCC files,) the pay-zone perforations falls to 27 feet.  Initial shut-in pressures averaged 172.3 psi and the average flowing pressures averaged 99.3 psi in 1962 and in 1976, the last year of continuous production, was down to 60.3 psi (Rauzi 2003, Olukoga, 2016).   Total production from the three fields was just over 9.6 billion cubic feet of total crude gas with approximately 2/3rds produced from the 11 Pinta Dome wells.  Actual helium as a percentage of production may vary greatly, as within any given field, as the extent of the productive area is not known at this time.

The company is not seeking to publish reserve estimates at this time, in part due to the fact that both wells have been completed in zones where there is currently no nearby production in Arizona from which to conduct accurate long-term reserve analysis.  However, the company will be having an independent review and submit their findings and should the qualified person be unable to report without reservation on reserves data, he shall set out the cause of the reservation and the effect, if known to the qualified reserves evaluator on the reserve data or prospective contingent resources data.

It should be noted that the zones that have been perforated are present on both well logs and reflected on seismic, and therefore do provide some guide that there is a possible extension as both wells are about 1.4 miles apart.  With the pressure differential in the formations in the wells, it is not currently possible to commingle production because the lower-pressured zone would simply not produce with the higher-pressured lower zone opened within the same well.  Therefore, and in accordance with normal accepted industry guidelines and Arizona State Oil & Gas Conservation Commission rules, no allowance for commingling within the same wellbore would be appropriate or approval granted.

Note that the previously mentioned flow rates may not be the actual daily productive flow rates once actual production is established!  Actual productive flow rates may vary from these suggested possible flow rates and future net revenue for individual wells may not reflect the same confidence level as estimates of future reserves on all wells, due to the effects of aggregation.  

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.

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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 CORP. DISCOVERS NEW GAS FIELD IN ARIZONA WITH SIGNIFICANT GAS FLOWS AFTER COMPLETING BOTH NEW WELLS

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 released the completion rig on both the State 10-1 and State 16-1 wells in Navajo County, Arizona. Flow tests have been conducted after perforating on both wells from zones where significant gas flows where found during drilling operations. The Company feels the pressure and volumes on both wells during testing fall well within the normal accepted oil and gas industry practices for determination of commercial flow rate protocols, with maximum non producibility volume speculations not taken into consideration.

Produced dry gas samples have been collected and sent to an independent lab for a total gaseous analysis. It is expected that results from these tests will take 7-10 days. The Company will address possible gas flow volumes, actual gross helium, other commercially viable rare earth gases and most likely production scenarios after testing results are received and reviewed by the team. It should also be noted the Company has fully restored and prepared both drilling locations for hydro seeding with native plant and grass species, when weather conditions are considered most favorable.

Significant probable pay zones were found in both wells. Each well had only 5’ perforated of the formation with the highest resistivity, porosity and neutron gas cross over on open hole wells logs combined with where the most significant gas flows had been encountered during the June and July drilling program. The Company utilized the newest design in booster charge perforation technologies on both wells to maximize initial production. These perforating charges were specifically selected to meet strict company geologic and drilling guidelines to eliminate the need for hydraulic fracturing and formation stimulation. This was accomplished via a single zone completion in both wells, proving up new field production from previously non-producing formations in Arizona. The Company considers it has other highly prospective pay zones within each well. Again, every formation the Company found containing gas in both wildcat wells would previously have been considered purely as speculative and will continue as such until the Company elects to drill, complete and test. Thereby establishing them first as additional prospective then productive formations.

Robert Rohlfing, CEO of the Company, crafted geologic studies within NE Arizona in October 1999 to search for what was felt to be a number of critical parameters required in relation to finding and then being able to cost effectively produce helium in Arizona. Careful application of the information it found via on the ground geologic studies, seismic and additional geophysical studies combined with many years of experience to delineate specific targets which would have the highest opportunity to drill and complete wells without the need to use large artificial formation stimulation, like is routinely done in many other geographical areas. The Company feels these additional proprietary minimum guidelines are key components in understanding overall the granularity of the entire spectrum of helium origination through production. The Company, continues with its own internal desire not to seek helium production from any zones where well completion would come from the same zone within a formation where potable water is withdrawn for human consumption.

DESERT MOUNTAIN ENERGY CORP AND THEIR COMMITMENTS TO ARIZONA

Desert Mountain Energy Corp. Continues to fulfill its promise of being an environmentally responsible partner in the State of Arizona. The Company is committed to protecting flowing treatable groundwater and have already and will continue to allocate funds for future projects that include isolating off these zones via cementing before drilling through, setting surface casing and cementing it into place.

The Company firmly believes that children are the future of Arizona and that their education is a top priority and are committed to being a responsible partner of the community in helping to provide a new revenue source to assist in funding education through the royalties it will be paying on the helium produced from its leases with the Arizona State Land Department.

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.

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

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.