Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY CORP. PROVIDES OPERATIONAL UPDATE

Desert Mountain Energy Corp. has noted that the West Pecos Slope Abo gas field has been successfully operational for over two months. The plant is autonomous, with an AI (artificial intelligence) component co-ordinating the integrated systems necessary to process the various crude gas components being produced by the wells.

Desert Mountain's technical team has worked through numerous challenges since the plant's start-up in June, 2024. The team encountered a range of challenges, including malware and ransomware, wiring problems, and components not meeting engineering standards. The company enlisted an automation team to rewrite software, enabling the company to avoid ransom demands from the malware creators. Upgrades were made to wiring, switchgear and bottlenecks in the system were addressed. The plant complies with the latest emission regulations for 2025 at both state and federal levels. The company will implement additional upgrades as needed in response to any new regulations that may be enacted.

The West Pecos Slope Abo gas field, which was initially producing at a rate of 105 mcf/day (thousand cubic feet per day) at the time of acquisition on July 1, 2023, underwent immediate and cost-effective well maintenance procedures. The use of acid and surfactant sticks increased production levels to a peak of 1.5 mmcf/day. The field also has a permitted water disposal well, significantly reducing expenses. Currently, the field produces approximately 30 bbl (barrels) of salt water/day (SW/D) 0.1577 bbl or approximately six gallons/day per well. Gas wells in southwestern New Mexico can produce hundreds of bbl of SW per day, impacting revenue and reducing profits. To further enhance revenue and profits, the company has deployed its in-house workover rig for well enhancements, with the goal of ramping up gas production and reducing saltwater output. The installation of booster compressors (previously acquired) from the wells farthest from the plant site is anticipated to amplify gas production.

The company's geological team continues to identify hydrogen opportunities in Arizona and New Mexico. The company continues to analyze data alongside specific down hole well log information to understand the distinct geological conditions required for elevated hydrogen levels, to potentially reproduce these results in other wells or locations on its leases. Current geological data indicate that the elevated hydrogen levels are likely confined to specific geological settings within the company's leases. In contrast to the hydrogen production observed in Arizona, where indications suggest continuing production from above the Precambrian, the hydrogen production in New Mexico appears to originate from the Precambrian rock.

Desert Mountain seeks to utilize nearby stranded gas wells for data centre power source

The company is working with a private company to identify stranded gas wells in current operational areas that have the potential to be used as a power source to operate small data centres.

New auditor visits New Mexico operations for due diligence

Davidson and Company LLP, the new auditor for Desert Mountain, conducted a visit to the West Pecos Slope Ado gas field operations in early October as part of its due diligence process to gain insights into the business and the challenges it faces.

About Desert Mountain Energy Corp.

Desert Mountain Energy is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen and natural gas. The company is focused on helium extraction from different raw gas sources in an environmental and economical manner, supplying elements deemed critical to the renewable energy and high technology industries.

We seek Safe Harbor.