Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY GIVES UPDATE ON THE WEST PECOS SLOPE ABO GAS FIELD

Desert Mountain Energy Corp. has provided an update on its continuing success in reassembling the helium processing facility in New Mexico. An additional dehydration unit will be added to the system, resulting in the removal of helium, inert gases and heavy C-molecules. This will lead to a higher net price for the methane gas produced by the company. The elimination of these particles will have an immediate and substantial impact on the net price received by the company for its natural gas.

The company will continue replacing specific portions of flow lines and has implemented a scheduled maintenance program for the flow lines. The continued pigging of lines will help to lower flowing pressures from the furthest distant wells. Smaller gathering system compressors have been delivered, when coupled with line pigging will enable boosting production from the wells testing with elevated levels of helium. As stated in the press release on Aug. 16, 2023, the geologic team conducted independent gas analysis on specific individual wells, focusing on wells that showed higher levels of helium in previous tests over the past two years. The overall average gas composition of the tested wells, including C1-C10, nitrogen and helium percentages, falls within the expected ranges based on testing and reported by the former operator. The company plans to continue conducting additional independent gas composition tests on specific wells to further delineate opportunities to increase the overall helium throughput of the plant.

The McCauley project in Arizona

DME, in partnership with Beam Earth Ltd., is planning an airborne, low-altitude, geophysical survey over specific properties in Arizona. The properties to be surveyed include the McCauley field, the Winslow south field and the O'Haco properties. By incorporating data from previously drilled wells, the survey aims to improve the accuracy of the final data sets by establishing additional correlations. The results of this high-resolution survey will be used to verify and, if necessary, redefine drill targets for each of the properties.

Incentive options

Pursuant to the appointment to the board of directors and head of the audit committee, the company has set options for Michael O'Shea. The 300,000 options were set at a premium to Friday's closing price, 44 cents per share vesting over one year with a five-year expiry date of Sept. 1, 2028.

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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