Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY PROVIDES OPERATIONS UPDATE

Desert Mountain Energy Corp. has continued to complete planned work as previously outlined, per the use of proceeds from the last financing. "The company is in an excellent financial position," said Robert Rohlfing, chief executive officer of Desert Mountain. "There is approximately $19.7-million cash on hand with significant percentages tied up in various guaranteed interest-bearing accounts."

The wells feeding the McCauley helium processing facility were swabbed down with no formation water being detected. The water removed showed signs that it was from drilling and completion operations and not from the targeted formations. A full-size helium gas tube trailer is on site for production rather than the smaller tanks for run-up testing.

As previously outlined in the use of proceeds, the company has acquired additional heavy trucks and additional trailers. Trailers to haul the company's produced raw crude gases are being modified to haul crude gas from its other wells to the McCauley helium processing facility. The company expects to take delivery of a workover rig, capable of swabbing and light workover functions, by the end of June, 2023. These specific vehicles were selected to help optimize and reduce the wait time to accomplish specific tasks. Desert Mountain's trucking company continues to improve usage performance. The signing of a long-term agreement to haul heavy gas field compression units for a major company in the Four Corners region and Colorado is significant.

Desert Mountain's hydrogen drilling partner was encountering market conditions slowing its financing down. The company had already planned for a possible contingency and will be drilling two wildcat wells, specifically targeting helium, starting toward the end of June, 2023, to the middle of July, 2023. One well will be drilled on the south Winslow prospect and the other well will be on the O'Haco leases. Both wells are located within approximately 10 miles of the McCauley helium processing facility. Depending on the outcome of those drilling efforts, initial production will be trucked to the McCauley helium processing facility. Desert Mountain anticipates drilling the shallow hydrogen/helium wells toward the end of August, 2023.

The company has continued to go forth with multiple archeological studies required for drilling and production on its state leases. This extensive work and separate permitting are required, prior to requesting actual drilling permits, from the State of Arizona Oil & Gas Conservation Commission. The company is also engaged in geophysical studies across northeast Arizona and other states. Those activities are in conjunction with private oil and gas companies currently drilling. The company is not engaged or in partnership with those companies in drilling wells for hydrocarbon production. The company expends very small moneys to have independent geologists with mass spectrometers on location during drilling operations. Thus far, Desert Mountain's efforts have found the presence of helium in areas previously untested for both helium and hydrogen. Looking at the entire spectrum of elements is an established practice by the company and provides its geological team with the maximum data by which to make decisions.

The company has identified and ordered the longest lead time components for two processing facilities. The next processing facility is planned to have liquefication capabilities in order to process the noble gases in addition to being able to sell liquified helium to meet specific customers needs.

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.

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