Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY ANNOUNCES $3.2M NON-DILUTIVE FUNDING AGREEMENT WITH ROSWELL INFORMATION PARK

Desert Mountain Energy Corp. has signed an agreement with Roswell Information Park LLC to finance key infrastructure associated with previously announced projects on a non-dilutive basis.

The initial financing commitment totals approximately $3.2-million (U.S.), with additional contracts to be executed as planning, engineering and permitting milestones are achieved.

Pipeline and power infrastructure

Under the agreement, Roswell Information Park will finance:

• Final engineering, ROW acquisition and construction of approximately 14 miles of an eight-inch pipeline, creating a redundant and secure pathway for locally produced natural gas to reach the behind-the-meter power generation site;
• Main pipeline connection costs for long-term natural gas supply.

This infrastructure is designed to support the park's planned hyperscale artificial intelligence data centre campus, where uninterrupted energy delivery is a critical requirement.

Gas storage and development

Desert Mountain has completed a base geologic study identifying a potential formation within its current leasehold capable of serving as an underground natural gas storage unit. Early evaluations indicate capacity of up to 3.0 billion cubic feet, providing redundancy for the Roswell Information Park in the event of scheduled or unscheduled pipeline downtime.

Development plans include:

• All wells drilled will be evaluated for previously non-produced zones possibly containing helium-3, helium-4 and hydrogen;
• Drilling 13 wells to approximately 3,900 feet, beginning with core sampling for testing and potential conversion into a storage or production well;
• Targeting the Lower Abo sand formation for both natural gas and helium potential;
• Construction of a 20-inch pipeline to maintain power supply during critical conditions;
• Geologic engineering.

For hyperscale data centres, dependability is paramount, and downtime is intolerable. Major pipelines across the United States often schedule several days of downtime annually, in addition to the risk of unscheduled interruptions. By developing an on-site gas storage unit, Desert Mountain will provide the redundant energy supply required by hyperscalers to ensure continuous operations.

Advancing hydrogen and emission solutions

The proposed storage site lies on the western edge of a geologic trend identified by Desert Mountain as prospective for white hydrogen in shallower formations. Future work will assess integration of hydrogen into the gas stream or conversion into power using advanced hydrogen fuel cells for delivery to the southwestern power grid.

Additionally, Desert Mountain is collaborating with Roswell Information Park, hyperscale tenants, regulators and carbon dioxide end-users to incorporate long-term emission control solutions, with associated costs to be borne by the park.

Strategic impact

By structuring this agreement as non-dilutive financing, Desert Mountain secures financial support while preserving shareholder value. The project is expected to generate new revenue streams from:

• Gas storage operations;
• Local pipeline management;
• Future CO2 capture and utilization initiatives;
• Sales of processed natural gas and helium production.

"This agreement represents a critical step forward in building the infrastructure required to support hyperscale data centres in New Mexico," commented chief executive officer Robert Rohlfing. "The funding arrangement ensures Desert Mountain Energy advances its strategic projects without shareholder dilution while positioning the company to generate long-term revenue from gas storage, pipeline operations and future emission solutions."

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.

We seek Safe Harbor.