Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY ADVANCES HELIUM AND HYDROGEN OPPORTUNITIES AND PARTNERSHIPS

Desert Mountain Energy Corp. has shared recent developments in its operations, legal matters, and strategic initiatives in Arizona, New Mexico and the United Kingdom.

Operationally, Desert Mountain achieved a key milestone this month with the departure of its first helium trailer from its New Mexico processing facility.

Formation of Desert Energy U.K. Ltd. and United Kingdom exploration licence

Desert Mountain is expanding its footprint internationally through the formation of Desert Energy U.K., a wholly owned subsidiary, to maximize current geopolitical unknowns. This new entity has secured a substantial onshore exploration licence for helium and hydrogen in Devon, U.K., spanning approximately 370 square miles (958 square kilometres). The licence, granted by a large mineral and landowner who has a strong commitment to responsible resource stewardship, positions Desert Mountain to engage with U.K. governmental agencies to facilitate geophysical work in the region.

Hydrogen exploration in the U.K. and the United States

Furthering its collaborative approach, Desert Mountain has signed a memorandum of understanding on April 24, 2025, with Hethos Ltd., to jointly explore and produce helium and hydrogen in southwestern U.K., northeastern Arizona and southeastern New Mexico. Discussions with U.K. regulatory bodies are under way to support these efforts, with minimal capital expenditure expected from Desert Mountain during the initial geophysical phase.

Technology development and strategic partnerships

Desert Mountain is also investing in innovation, having entered a non-disclosure agreement on April 14, 2025, with private entities to develop cost-effective technologies for helium and hydrogen extraction and exploration. This partnership includes field testing of new equipment in Arizona and New Mexico, planned for fourth quarter 2025 through second quarter 2026. With development costs largely covered by the partner's grants, Desert Mountain anticipates limited financial outlay during this phase. Updates will be shared in accordance with the agreement terms.

Additionally, in collaboration with Hethos, Desert Mountain is in talks with universities in the United States and Europe to develop a passive tool for detecting possible and probable commercial helium and hydrogen deposits at depth. This research initiative is expected to require minimal financial investment, aligning with Desert Mountain's prudent approach to capital allocation.

Desert Mountain Energy remains focused on responsibly advancing its helium and hydrogen projects while fostering strategic partnerships and technological innovation. The company will continue to provide updates as developments unfold.

Arizona Court of Appeals ruling

The Arizona Court of Appeals ruled in the company's favour on March 4, 2025, and subsequently, on April 7, 2025, to approve the request for fees, with regard to its recent unanimous decision. Further updates will be shared as appropriate.

The company remains deeply committed to Arizona, maintaining its wells, renewing leases and working closely with state regulators to develop regulations for the industry.

About Desert Mountain Energy Corp.

Desert Mountain 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 economic manner, supplying elements deemed critical to the renewable energy and high technology industries.

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