Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY SIGNS JOINT OPERATING AGREEMENT & GUNNAR DOME WELL UPDATE

Desert Mountain Energy Corp. has signed a joint operating agreement (JOA) with Beam Earth Ltd. The JOA initially encompasses the shallow hydrogen zones found while drilling in the McCauley helium field. The agreement provides for the company's continued ability to remain focused on its helium prospects whilst utilizing Beam Earth's expertise in hydrogen. Furthermore, this agreement provides the basis for opportunities for other JOAs with Beam in jurisdictions outside of Arizona.

"The co-operation of our technical teams provides a like-minded approach to exploration, development and production of helium and the emerging technologies surrounding the optimization of lower-cost, naturally occurring hydrogen," said Robert Rohlfing, chief executive officer of Desert Mountain Energy. "We look forward to working together with Beam Earth on the complexity of the geological settings and specific geophysical options required to be able to repeatedly duplicate successful exploration."

The company has tested two zones in the Gunnar Dome well and found helium. The gaseous composition of that specifically tested interval would not be compatible for production with the planned McCauley helium processing facility. Therefore, the company is scheduling the rig and associated equipment to come out, isolate the tested zone and complete the well into another zone where helium was seen on the mass spectrometer without the inclusion of other noble gases. Desert Mountain Energy will advise upon completion of that work.

The company has filed a counterclaim for damages in regard to the original injunctive action by the City of Flagstaff. The company will only comment as appropriate in this matter. A copy of the filing may be found on-line at the Coconino County Clerk's office.

About Desert Mountain Energy Corp.

Desert Mountain Energy is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The company is primarily looking for elements deemed critical to the renewable energy and high-technology industries.

We seek Safe Harbor.