DESERT MOUNTAIN ENERGY COMPLETES AIRBORNE GEOPHYSICS SURVEY IN ARIZONA’S HOLBROOK BASIN WITH ENCOURAGING RESULTS

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 completed an advanced Remote Sensing Study (the “Study”) covering approximately 377,600 acres in the Holbrook Basin of Northern Arizona (the “Basin”), which included areas under lease or option to the Company as well as State and Federal ground. The non-invasive remote study utilized  infrared spectral analysis to locate certain neutron-deficient target isotopes generally associated with the presence of Helium.

Results of the Study are highly encouraging insofar as it identified a number of discreet higher radiance targets which are prospective for potential helium reservoirs.  The location of these hotspots in many cases coincided with the choice of initial targets made by the Company’s technical team for its upcoming drill program.  55 of these hotspots were located on ground under lease or option to the Company in its 65,911 acre Heliopolis Helium Project.

In addition, results of the Study served to confirm the location of anticlines, domes, synclines and other geologic structures likely to serve as traps for helium reservoirs in the Basin.  These were consistent with the maps previously published by the U.S. Geological Survey, state agencies, academia and private industry, as well as the Company’s own examination of the Basin’s prospective areas.  The Study confirmed both known and inferred geologic structures at surface, near surface and at depth.

The Study utilized satellite and Airborne Visible and Infrared Imaging Spectrometer (“AVIRIS”).  Data was collected on a combination of 1.2 m -1.7 m Spatial Resolution with the radiance spectrum adjusted to the Top of Atmosphere (“TOA”) using band centers and Full Width Half Minimum (“FWHM”) to meet the specifics required to locate certain trapped target isotopes within highly permeable and high porosity formations at depth.

According to Irwin Olian, CEO of the Company, “We are very excited to have completed our airborne geophysics survey with strong results that corroborate our technical team’s targeting work. We are looking forward to our upcoming drill program in the Holbrook Basin with a high level of confidence.”

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: [email protected]
Tel:  +1-604-788-0300

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 PROVIDES UPDATE ON CORPORATE PROGRESS AND DISCUSSES THE WORLDWIDE HELIUM MARKET

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to provide a brief update on the status of the Company and its work programs in the current environment as well as an overview of the worldwide helium market in light of the covid-19 pandemic.

The Company closed a financing for $1.6 Million on February 27, 2020, and as a result has large cash reserves with which to fund its future work programs as well as for working capital. It has no long-term debt. At present, the Company is fully operative, with none of our management or staff having contracted covid-19 and all personnel currently working comfortably and safely from their home offices.

We are moving forward with our planned drill programs for Helium in Arizona’s Holbrook Basin as well as in Oklahoma at the Kight Gilcrease Sand Unit, with the permitting process underway in Arizona and drill permits having already been issued in Oklahoma. Requisite surveying, archaeological studies, reports, maps, liability insurance and surety bonds are in process for the Arizona Department of Land and Arizona Oil & Gas Conservation Commission. Those Departments remain open and functional in the current environment. In addition, we are in the process of procuring a drilling contractor and the requisite rigs for the project.

We are anticipating that everything will be in place to permit commencement of the first hole this June in the Holbrook Basin provided the covid-19 crisis begins to ease in the meantime. In addition, the Company’s technical team is carrying out research and studies on other areas in the Holbrook Basin that were recently optioned by the Company.

Helium, like most other industrial commodities, is suffering an immediate short-term decline in demand as a result of the worldwide covid-19 crisis. Demand from some sectors such as party balloons and diving gas has virtually disappeared. However, it is a strategic commodity and high tech uses are continuing in computer hard-drive and semiconductor applications, military and spacecraft applications, MRI use, etc. At the same time, there is considerable disruption in the supply chain worldwide, resulting in a short-term decline in available supply to helium distributors. For example, shipping has been disrupted by cancellation of numerous sailings from China and bottlenecked ports which have tied up empty shipping containers. Overall, the fall in demand from the pandemic is estimated by industry sources to be 10-15% or more. It has brought helium supplies back in line with demand, leading to an end to the recent worldwide helium shortage and a short-term reduction in helium prices.

The recent fall in demand for helium is viewed by most industry participants as a very short term phenomenon linked to the covid-19 crisis. Once the crisis has ended and the economy gets back on its feet, we anticipate a resumption of growth in helium demand which will lead to higher helium prices down the road. New uses for helium continue to be developed, such as the recent announcement by Microsoft and other video games manufacturers that they will be putting helium in the hard drives of the sophisticated video games to make them faster. In addition, the concern with future pandemics suggests that demand will be strong from MRI manufacturers and other medical applications.  Further, balloon distributors such as Party City are now in a position to replenish their helium inventory in preparation for the next business upturn.

On the supply side, we see the potential for further pressure long-term on the available supply of helium.  Approximately 90% or more of the world’s helium production is secondary to oil and gas production, produced as a byproduct of natural gas processing or LNG production. The collapse of oil and gas prices as a result of the dispute between Russia and Saudi Arabia, combined with the covid-19 crisis, have created a glut of oil and LNG that is likely to last far into the future. Ships have been backed up in China and India unable to offload their LNG shipments into storage tanks which are already full. This combined with the paradigm shift to renewable energy sources from fossil fuels, is creating an environment where many traditional oil & gas operators are being forced to consider shutting-in wells, cancelling new gas development plans and slowing down growth in new refinery capacity. New refinery projects in Qatar and Algeria have already been suspended or slowed down recently. This will surely impact world helium production where it has been produced as a byproduct of oil & gas production. We believe the impact is likely to be strong, resulting in a significant decline of the helium supply from those sources. Combined with continued growth in worldwide helium demand from high tech and new economy sources after the crisis abates, we see the potential longer term for a resumption of sharp helium price increases and a renewed shortage.

According to Irwin Olian, CEO of the Company, “Insofar as Desert Mountain Energy is exploring for and developing primary helium resources in Arizona not associated with oil & natural gas production, we are in a very strong position unlike many helium producers who are focused on secondary production. Further, the debacle in the oil & gas industry is already having the effect of reducing drilling and exploration costs. This will work to our advantage by reducing costs of our upcoming drill programs. We are looking forward to an end to the covid-19 crisis soon. In the meantime, we remain committed to working hard to advance the Company to the best of our ability during this challenging time.”

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: [email protected]
Tel:  +1-604-788-0300

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 $1.6 MILLION PRIVATE PLACEMENT FINANCING

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 its non-brokered private placement previously announced on December 17, 2019 (the “Offering”), raising gross proceeds of CAD $1, 602,850.16. Under the terms of the Offering, the Company issued 7,285,682 Units (the “Units”) at a price of CAD $0.22 per Unit.

Each Unit consists of one common share of the Company (each, a “Common Share”) and one-half of 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 $0.33.  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 $0.60 for a minimum of ten consecutive trading days.  Accordingly, the Company issued a total of 7,285,682 Common Shares in the Offering as well as 3,642,841 whole Warrants.

The Company plans to use the proceeds of the Offering for exploration and development of the Company’s helium projects, including its upcoming drill program in Arizona and Oklahoma, as well as working capital and general corporate purposes.

In connection with the Offering, the Company paid aggregate finder’s fees of $68,160.38 in cash and issued 309,729 non-transferable finder’s Warrants, each of which is exercisable into one Common Share for a period of two years at a price of CAD $0.22 per Common Share.   All securities issued in connection with the Offering will be subject to a customary 4-month hold period pursuant to applicable Canadian securities laws.

According to Irwin Olian, CEO of the Company, “We are very gratified with the strong investor response to the Offering and appreciate the support we have received from the investment community, particularly considering the difficult market environment at this time. We look forward to an exciting year in 2020 with drilling planned for priority targets on our two helium projects in Arizona and Oklahoma.”

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: [email protected]
Tel:  +1-604-788-0300

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 RETAINS PARADOX FOR INVESTOR RELATIONS

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 retained the services of Relations Publiques Paradox Inc. (“Paradox”) to provide investor relations services for the Company, effective immediately. Paradox is a highly- regarded, Montreal-based investor relations consultancy firm that has been in business for over 20 years. They have represented many successful public companies in a variety of industries, drawing on their experience, publicity skills and extensive network of contacts throughout the capital markets to bring value-added to their clients.

Paradox will strive to increase the Company’s visibility in the financial community through introductions and meetings, publicity and marketing strategies, roadshows and presentations to the investment community and direct communications with shareholders and potential investors in order to increase investor awareness. Paradox’s extensive experience and vast network of contacts allow them to provide a full-service approach to investor relations in order to develop a creative and effective results-driven investor relations program for the Company.

The Agreement between the Company and Paradox is for a term of one year from January 10, 2020 through January 9, 2021, with a renewal option for an additional year in the Company’s discretion. Paradox will be paid $7,500 per month and will be granted stock options under the Company’s Stock Option Plan to purchase 400,000 shares of the Company’s Common Stock for a term of two years at a price of $0.22 per share. The options are subject to customary vesting over the term of the Agreement. The Agreement is subject to the approval of the TSX Venture Exchange.

The Company is focused on development of its flagship Heliopolis helium project in Arizona’s Holbrook Basin and is presently in the permitting process for its upcoming drill program. That program contemplates drilling three shallow wells in priority target areas in the Basin. At the same time, the Company is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.

According to Irwin Olian, CEO of the Company, “We look forward to working with Jean Francois Meilleur and his team at Paradox during this most exciting year for our Company, with drilling planned for both of our projects. We have known Jean Francois for a number of years and have been impressed with his team’s professionalism, integrity and ability to create successful investor relations 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: [email protected]
Tel:  +1-604-788-0300

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 gross proceeds of up to CAD $1.98 Million.  Under the terms of the private placement, the Company will offer for sale up to 9,000,000 Units (the “Units”) at CAD $0.22 per Unit.  The Company may in its discretion increase the size of the offering by up to 20% to a maximum of 10,800,000 Units.

Each Unit will consist of one Common Share of the Company and one-half of one share purchase warrant (the “Warrants”), where each whole Warrant will allow the subscriber to purchase one additional Common Share of the Company for a period of two years from the date of Closing at a price of CAD $0.33.  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 $0.60 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, including its upcoming drill program in Arizona and Oklahoma, as well as working capital and general corporate purposes.

The Company may, in its discretion, pay a finder’s fee of up to 7% of the total gross proceeds of the offering in cash and/or securities, where applicable.   The Units will be subject to a 4-month hold period. The Company anticipates closing the private placement on or about January 20, 2020, subject to adjustment if deemed appropriate.  The private placement is subject to the approval of the TSX Venture Exchange.

The Company continues to be focused on development of its flagship Heliopolis helium project in Arizona’s Holbrook Basin and is presently in the permitting process for its upcoming drill program.  That program contemplates drilling three shallow wells in different priority target areas in the Basin. At the same time, the Company is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.

According to Irwin Olian, CEO of the Company, “We look forward to an exciting year in 2020 with drilling planned for priority targets on our two helium projects in Arizona and Oklahoma.”

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: [email protected]
Tel:  +1-604-788-0300

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 OPTIONS 23,000 ACRES OF ADDITIONAL HELIUM LEASES 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 it has optioned approximately 23,000 additional acres of helium, oil & gas leases in the prolific Holbrook Basin of eastern Arizona. This brings the Company’s total acreage under its control in the Basin to 65,911 acres.  The leases were optioned for a period of three years directly from private family-owned corporations that have owned the underlying land for decades (the “Lessors”).

Upon exercise of the options, the Company will obtain a five-year lease covering development and production of helium, oil & gas and all other minerals from the ground optioned. The term of the leases will be extended so long as there is production from them, insofar as they are held by production.  A customary 12.5% gross royalty on all production of helium, oil & gas is payable to the Lessors.

The optioned ground is situated in and around the Company’s Heliopolis project area in close proximity to its other holdings in the Holbrook Basin. It complements the Company’s existing leases and serves to further consolidate the Company’s property position in the area.  The optioned ground is highly prospective for helium and is characterized by the presence of anticlinal features, domes and other structures which have the potential to serve as traps for commercially significant helium reservoirs. An historic oil well drilled on the optioned ground had a showing of helium.

The Company continues to be focused on development of its flagship Heliopolis helium project in Arizona’s Holbrook Basin and is presently in the permitting process for its upcoming drill program.  That program contemplates drilling three shallow wells in different priority target areas in the Basin. At the same time, the Company is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.

According to Irwin Olian, CEO of the Company, “We are very grateful for the family’s choice of Desert Mountain Energy as its partner to explore and develop helium and other mineral resources from its large property package in the Holbrook Basin.  We are committed to creating a success for all the parties concerned that has economic benefits for the local communities and counties and the State of Arizona, with minimal environmental footprint.”

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: [email protected]
Tel:  +1-604-788-0300

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 ADDS 3169 ACRES OF HELIUM LEASES TO ITS HELIOPOLIS PROJECT IN ARIZONA’S HOLBROOK BASIN

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce that it has acquired an additional 3169 acres under lease for helium, oil and natural gas in the prolific Holbrook Basin of eastern Arizona.  The leases were acquired directly from the Arizona Department of Land.  They are situated in Coconino County, Arizona, in the Company’s Heliopolis project area in close proximity to its other holdings. They serve to further consolidate the Company’s property position in that area.

The addition of these 3169 acres brings the Company’s total acreage under lease in the Holbrook Basin to 42,911 when added to the 39,742 acres already under lease from the Arizona Department of Land and the U.S. Bureau of Land Management.  The Company initiated its exploration and land acquisition program in the Holbrook Basin in the fourth quarter of 2017.

The leases in this last tranche are highly prospective for helium.  They are characterized by anticlinal features, monoclines and other geological structures with surface expression, together with reservoir rocks and salt and anhydrite cap rocks, giving them potential to serve as trapping mechanisms for commercially significant helium reservoirs.

The Company continues to be focused on development of its flagship Heliopolis helium project in Arizona’s Holbrook Basin and is presently readying applications for drill permits.  At the same time, it is also preparing a drill program at its Kight-Gilcrease Sand Unit helium, oil & gas project in Seminole County, Oklahoma.

According to Irwin Olian, CEO of the Company, “We are very appreciative of the continuing efforts of our Technical Team headed by Robert Rohlfing to continue to search out and acquire the most promising additional helium properties in the U.S. Southwest to add value for our shareholders. This effort is ongoing and an integral part of the Company’s long-term growth plans.”

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: [email protected]
Tel:  +1-604-788-0300

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 RECEIVES PERMITS TO DRILL TWO WELLS ON ITS OKLAHOMA KIGHT-GILCREASE PROPERTY

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce that it has now been issued permits by the Oil & Gas Conservation Division of the Oklahoma Corporation Commission in Oklahoma City to drill two new primary wells during the next six months in the Company’s Kight-Gilcrease Sand Unit oil field in Seminole County (the “KGSU”).  The two wells permitted are the KGSU 7-2B and 7-3A, which are planned to be simple, vertical wells drilled to a total depth of approximately 2,950 ft each from sites located at an altitude of about 887 ft, relatively high on the structures which are being targeted for their potential to host reservoirs of helium, oil  & gas. The wells are designed to test four stratigraphic zones known to exist in the KGSU, namely the Senora, Earlsboro, Booch and Gilcrease Sands, which are located respectively at 2490, 2620, 2670 and 2820 ft.  Drilling will commence as soon as practicable after securing the requisite rigs and equipment, which are anticipated to be available in the next 60 days.

The two new wells have been located in order to test the helium potential of the KGSU following earlier findings in existing wells of helium concentrations grading up to 1.3622% He in the Gilcrease Sands  (see PR dated  May 13, 2019).  These Helium concentrations found in other wells on the KGSU are consistent with concentrations being produced from other U.S. natural gas fields in Kansas, Oklahoma, and Texas.

The specific well locations were selected in order to test the four stratigraphic zones cited above near the highest structural points on the property, which are highly prospective for helium.  In addition, they will serve as the next step forward in optimizing oil production from the KGSU.  The locations of the two new wells are not within close proximity to any commercial fresh water supply, a municipal water well, nor in an area under Federal jurisdiction.

Apart from information garnered by the Company’s testing of existing wells in the KGSU for helium content, logs from offsetting wells displayed the overall granularity and porosity requirements for probable trapping mechanisms for Helium.  The presence of thick anhydrite formations and other formational sequencing of relatively impervious layers, coupled with prior positive test results for the presence of Helium and mapping of the previously discovered oil bearing sands in the Gilcrease Sands, tend to support the conclusion that the KGSU is highly prospective for the presence of commercial reservoirs of helium. The current two well drill program is designed to test this.

The KGSU was permitted and approved by the Oklahoma Corporation Commission (“OCC”) under order #375263 dated July 19,1993, as an enhanced oil recovery project.  The KGSU is comprised of approximately 883.7 acres which is substantially underlain by the Gilcrease Sand Formation.  The KGSU is located 8 miles South of Wewoka, OK directly astride Highway 56.  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.

According to Irwin Olian, CEO of the Company, “We are very gratified to have received our drill permits from the OCC so quickly following filing and to be able to move forward at this time with our drill program on the KGSU.   This gives us potential for helium production in Oklahoma as well as advancing potential for new primary oil production and the planned water-flood secondary oil production from the KGSU.   These shallow vertical wells should be drillable quickly at low cost.  While the Heliopolis Project in Arizona remains our flagship property and immediate priority, it is encouraging to have another property in our portfolio with strong potential for future helium production.”

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: [email protected]
Tel:  +1-604-788-0300

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 GRANTS STOCK OPTIONS

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) announces that it granted on August 21, 2019, subject to any necessary regulatory approvals, incentive stock options to purchase in aggregate 800,000 shares of its Common Stock.  Of such options, 450,000 were granted to a group of six officers and directors, while 350,000 were granted to a group of five consultants and employees.  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 $0.25 per Share.  They are subject to the Company’s customary vesting policy.

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: [email protected]
Tel:  +1-604-788-0300

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 FILES PERMIT APPLICATIONS TO DRILL TWO WELLS ON ITS OKLAHOMA KIGHT-GILCREASE PROPERTY

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) Desert Mountain Energy Corp. has now filed two separate applications with the Oil & Gas Conservation Division of the Oklahoma Corporation Commission in Oklahoma City to acquire drill permits for two new primary wells in the company’s Kight-Gilcrease sand unit (KGSU) oil field in Seminole county. The two wells will be simple, vertical wells drilled to a depth of approximately 2950 ft each from sites located at an altitude of about 887 ft, relatively high on the structures which are being targeted for their potential to host reservoirs of helium, oil & gas. They are designed to test five stratigraphic zones known to exist in the KGSU, namely the Calvin, Senora, Earlsboro, Booch and Gilcrease Sands, which are located respectively at 1170, 2490, 2620, 2670 and 2820 ft. Management anticipates that the permit applications will be approved shortly and does not anticipate any issues or delays. Drilling will commence shortly after the permits are granted, subject to drill rig availability.

The Company previously announced (see PR dated May 13, 2019) that analytical tests performed on gas samples from three existing oil & gas wells on the KGSU returned positive results for the presence of helium, with concentrations up to 1.3622% He. These test results are consistent with helium concentrations being produced from other U.S. natural gas fields in Kansas, Oklahoma and Texas. These encouraging results led management to conclude that a drill program to evaluate the helium potential of the KGSU should be undertaken as soon as practicable. Accordingly, management has devised a two-hole drill program designed to test the five zones noted above for helium, oil & gas. While the KGSU remains a strong target for enhanced secondary water flood production of oil from the Gilcrease zone, helium now adds a new dimension to the property.

Helium is the second lightest element (next to hydrogen) and has the smallest molecular size of any element on earth. Accordingly, it defies gravity and tends to rise to the surface of the earth’s crust and dissipate into the atmosphere and space unless it is retained by effective trapping mechanisms underground. The stratigraphic zones above the Gilcrease Sands are viewed as highly prospective for helium gas in the KGSU. These zones provide a wide target for additional helium, potentially higher in grade than that recently sampled from the Gilcrease Sands due to the above-noted tendency of helium to rise toward the surface. These zones are viewed as highly prospective because of their dense lime or anhydrite cap and close proximity to known or indicated fault structures. The recent discovery by the Company of helium gas just below them in the Gilcrease Sands is extremely suggestive that He will also be found in these zones.

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, “We are very excited to be moving forward with our drill program on the KGSU, as it gives us potential for helium production in Oklahoma as well as advancing the water-flood program designed to be undertaken in the future on the KGSU to create secondary production of oil. These shallow vertical wells should be drillable quickly at low cost following permit approval. While the Heliopolis Project in Arizona remains our flagship property and immediate priority, it is encouraging to have another property in our portfolio with strong potential for future helium production. We are just now completing our seismic studies and targeting work on Arizona’s Holbrook Basin and expect to be filing drill permit applications there shortly.”

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: [email protected]
Tel:  +1-604-788-0300

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.