Mr. Robert Rohlfing reports

DME SIGNS STRATEGIC AGREEMENT WITH SUSTANY HOLDINGS AND PROVIDES OPERATIONAL UPDATE FOR ARIZONA AND NEW MEXICO

Desert Mountain Energy Corp. has entered into a non-disclosure agreement and memorandum of understanding with Sustany Holdings, effective April 27, 2025. Under the agreement, a large data centre (in excess of 200 megawatts) will be constructed and powered by a combination of grid electricity, solar energy and electricity generated from natural gas utilizing high-efficiency gas turbines. This agreement secures a long-term end-user for Desert Mountain's produced natural gas for the life of the field and a significant portion of its future helium output.

To increase the production of tariff-regulated gas and high-grade helium, Desert Mountain may add a nitrogen separation unit to meet gas purity specifications of the data centre. The company will also update and reroute flow lines to maximize throughput at its processing facility. Although the facility has been optimized for peak helium extraction, it has been operating below volume capabilities. Maximum helium production will require all wells to be routed through the plant.

Desert Mountain plans to upgrade and expand approximately 33 miles of new lines, including the installation of larger lines, to reduce pressure and increase natural gas and helium production. During these upgrades, wells and the processing facility will be temporarily shut in for specific periods.

Desert Mountain's gathering system is not subject to the methane leakage issues found in some older systems in the area. After gas leaves Desert Mountain's meter, the company is not responsible for subsequent leakages or line losses due to other processing systems. Desert Mountain remains committed to cost-effective and environmentally conscious gas processing. The Bureau of Land Management has approved the temporary suspension of production during these enhancements. Desert Mountain anticipates increased royalties and sales tax revenues from reduced lost volumes.

Some neighbouring well owners have announced plans to interrupt production to install new gathering lines and pursue direct sales to end-users. Desert Mountain and other operators have worked diligently to secure realistic gas sales contracts; however, terms offered by other buyers would not be economically viable for long-term operations or shareholder returns.

Discussions with Sustany Holdings also include potential expansion of the McCauley helium field solar facilities and integration with the southwestern power grid in Arizona. Desert Mountain continues to reduce operational losses while advancing projects in Arizona and New Mexico.

In preparation for feasibility and geophysical studies in the United Kingdom, Desert Mountain chief executive officer Robert Rohlfing will meet with government officials and strategic partners over the next two weeks.

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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