Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it is proceeding with a non-brokered private placement offering to raise up to CAD $4.0 Million.  Under the terms of the private placement, the company will offer for sale up to 2,500,000 units (the “Units”) at CAD $1.60 per unit.  This offering is in addition to the previously announced non-brokered private placement that was announced on September 11, 2020 for up to 5,625,000 units.  This placement is as a result of strong interest from potential investors in the previously announced private placement.

Each unit will consist of one Common Share of the Company and one share purchase warrant (the Warrants), where each whole Warrant will allow the subscriber to purchase one additional share of the company for a period of two years from the date of the closing at a price of $2.00.  The Expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the Common Shares on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten consecutive trading days.  Proceeds from the private placement will be utilized for exploration and development of the Company’s helium projects, as well as working capital and general corporate purposes.

The Company may, in its discretion, pay a finder’s fee in cash or warrants of up to 7% and finder’s warrants 7% of the total gross proceeds of the offering in units, where applicable.  The Units will be subject to a 4-month hold period.  The Company anticipates closing the private placement prior to October 15, 2020, subject to adjustment if deemed appropriate.  The Company has engaged Cormark Securities Inc. as its financial advisor in connection with this transaction.  The private placement is subject to the approval of the TSX Venture Exchange.

According to Robert Rohlfing, CEO of the Company, “This additional placement moves us quickly to reach our overall goal of generating income from our first wells beginning in the fourth quarter of 2021.”

About Desert Mountain Energy

Desert Mountain Energy Corp. is a publicly traded exploration and resource company focused on the discovery and development of rare earth gas fields in the US.  The Company is primarily looking for elements deemed critical to the green energy and high technology industries.

We seek safe harbor

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it has tested significant Helium percentages in its new exploratory wells in Arizona.

The company has completed its independent gas analyses on both of its exploratory wells in Arizona, the State 10-1 and State 16-1.  In the 10-1 well the company perforated 5 feet of a limey sand in the lower Pennsylvanian-aged Formation out of which the company feels, based on open-hole logs, is a possible productive 28-foot zone with resistivities from 38 to 73 ohms.  Well logs delineate a drop in the porosity in the mid portion of this zone, consequently it feels that the additional interval under the current perforations would require separate sets of perforations to produce.   Initial shut-in pressure was 900 psi and through the multi-choke flow test, flowing pressure increased to 940 psi on a 1-inch choke with a coefficient of 25.76, equivalent to a non-corrected flow rate of 24,214 MCFGPD.  The average gas analysis showed Helium 7.1321%, Nitrogen 77.0837%, CO2 4.0183% Methane 2.6512% and other assorted minor gases.

The 16-1 well also perforated 5 feet of sand in the Supai Formation out of which the company feels, based on open-hole well logs, is a possible 61-foot productive zone.  Again, similar to what was found in the 10-1 well, there are two stringers of very dense dolomitic lime dropping the porosity.  Additional perforations would be required to access these intervals of possible production.   Initial shut-in pressure was 372 psi and through the multi-choke flow test, flowing pressure decreased and then quickly stabilized at 368 psi on a 3/8” choke with a coefficient of 3.40, equivalent to a non-corrected flow rate of 1,251.2 MCFGPD.  The average gas analysis showed Helium 4.0904%, Nitrogen 90.2742%, CO2 0.0063%, Methane 3.5535% and other assorted minor gases.

Based on normal accepted industry operation procedures, the company at this time and prior to further engineering and flow testing, would entertain a possible daily flow rate of between 4,100 and 5,600 MCFGPD based on aggregated production from both wells. The Company has compared these wells to the closest established and documented helium production located approximately 35 miles NE in the Pinta Dome Field.  Note: Desert Mountain Energy’s wells have been completed in members of the Pennsylvanian-aged Formations which are lower in depth than the helium productive Permian-aged Coconino Formation found at Pinta Dome (AZOGCC archives).  Production comparisons with a number of wells from the prolific Pinta Dome Field, specifically the Kerr-McGee Barfoot State#1, clearly shows that large artificial formation stimulation was not required to exceed the original projected calculated reserves by over 500%, over a 13-year production life (Olukoga 2016, AZOGCC Barfoot #1 well files).

The Pinta Dome, Navajo Springs Unit, and East Navajo Springs Unit, in total, comprise only 26 total productive wells (Conley, J.N. 1974).  The majority of the production came from Pinta Dome and was from only 11 wells, (AZOGCC production records, Olukoga 2016).   Those wells averaged about 8% helium across the field with a high initially noted at 10.78% in one well. The thicknesses of the pay-zones varied greatly from 2’ to just over 103’. Consequently, the overall perforated zones can be misleading, but after eliminating the single thickest pay- zone completion of 73 feet, (Eastern State 1-28, AZOGCC files,) the pay-zone perforations falls to 27 feet.  Initial shut-in pressures averaged 172.3 psi and the average flowing pressures averaged 99.3 psi in 1962 and in 1976, the last year of continuous production, was down to 60.3 psi (Rauzi 2003, Olukoga, 2016).   Total production from the three fields was just over 9.6 billion cubic feet of total crude gas with approximately 2/3rds produced from the 11 Pinta Dome wells.  Actual helium as a percentage of production may vary greatly, as within any given field, as the extent of the productive area is not known at this time.

The company is not seeking to publish reserve estimates at this time, in part due to the fact that both wells have been completed in zones where there is currently no nearby production in Arizona from which to conduct accurate long-term reserve analysis.  However, the company will be having an independent review and submit their findings and should the qualified person be unable to report without reservation on reserves data, he shall set out the cause of the reservation and the effect, if known to the qualified reserves evaluator on the reserve data or prospective contingent resources data.

It should be noted that the zones that have been perforated are present on both well logs and reflected on seismic, and therefore do provide some guide that there is a possible extension as both wells are about 1.4 miles apart.  With the pressure differential in the formations in the wells, it is not currently possible to commingle production because the lower-pressured zone would simply not produce with the higher-pressured lower zone opened within the same well.  Therefore, and in accordance with normal accepted industry guidelines and Arizona State Oil & Gas Conservation Commission rules, no allowance for commingling within the same wellbore would be appropriate or approval granted.

Note that the previously mentioned flow rates may not be the actual daily productive flow rates once actual production is established!  Actual productive flow rates may vary from these suggested possible flow rates and future net revenue for individual wells may not reflect the same confidence level as estimates of future reserves on all wells, due to the effects of aggregation.  

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that completion and testing operations have now commenced at its initial two wildcat helium wells  in Arizona’s Holbrook Basin, DME Well No. State 10-1 and DME Well No. State 16-1. Both wells were successfully drilled in June and July with production casing set.   As reported in our Press Releases dated June 23, 2020 and July 20, 2020, both wells encountered significant gas flows from multiple zones aggregating over 180 ft. in each well, with helium and other gaseous content yet to be determined.

 A workover/completion rig is presently on site and completion and evaluation procedures have now been commenced. The completion and evaluation procedures include logging of the cased holes, perforating the casing at select locations corresponding with anticipated pay zones, testing the pressure and flow rate of gas from the perforations, and gas sampling to evaluate full gaseous content. Industry best quality control and safety measures will be adhered to, with gas samples sent to an independent third party analytical laboratory.  The Company anticipates that the completion and testing work will be complete with results available in the next few weeks. The Company does not plan to comment further on the work being done until the completion and testing is complete, at which time this will be announced.

The Company wishes further to announce that it has now made application to the Arizona State Department of Land to acquire an additional 14,440 acres of new helium leases in various parts of the Holbrook Basin.  This application was made based on a detailed analysis by the Company’s technical team and is part of the Company’s ongoing program to create added-value for our shareholders through strategic property acquisitions.

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Don Mosher, Vice President of Capital Markets
E-mail: don@desertmountainenergy.com
(604) 617-5448

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.

Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that Mr. Don Mosher has accepted a position as Vice-President of Capital Markets and as a Director of the Company.  He replaces Ben Catalano on the Board, who has resigned as a director after 12 years of service to the Company to pursue other personal endeavors.  In addition, Ms. Jenaya Rohlfing has accepted a position to serve as a Director, filling the vacancy which currently exists on the Board.  We thank Ben for his dedicated work as a director of the Company over many years and wish him all the best in his future endeavors.

Don Mosher has 35 years of experience in corporate finance, business development, management and marketing.  He has served on boards and management teams of many publicly traded companies, advising companies on marketing, financing and corporate strategies. He has extensive experience in the resource sector, having been associated with a number of junior resource companies across the mineral spectrum and in oil & gas.  Most recently, Mr. Mosher was a Director and Vice-President of Capital Markets for Hempco Foods and Fibers (“Hempco”) where he was instrumental in negotiations resulting in the recently completed merger between Hempco and Aurora Cannabis Inc. Mr. Mosher’s capital markets and financial experience will provide the Company with additional leadership in this strategic arena as the Company advances its development and potential production plans.

Jenaya Rohlfing is a Petroleum Engineer who has exhibited exceptional technical, leadership and organizational skills in all facets of drilling operations for oil & gas over the past 13 years in various management positions with ConocoPhillips.  Working in diverse locations in North America including the Bakken, Alaska and the Rockies, she has served as Drilling Engineering Supervisor in the Bakken, Global Wells Planning Coordinator and currently as Drilling Engineering Supervisor for ConocoPhillips’ Kuparuk, Alaska program.  Her leadership led to performance improvement for developing & application of new drilling practices, resulting in reduced drilling time and well cost savings of as much as 45%, whilst leading the Health Safety Environment program and maintaining a commitment to Zero Incident Safety culture.

Like Dr. Jim Cronoble, Ms. Rohlfing obtained her B.S. in Petroleum Engineering from the University of Oklahoma in Norman, OK.  She is a member of the Society of Petroleum Engineers and currently serves as Treasurer and Director at Large of the distinguished American Association of Drilling Engineers, (National Board).

With the addition of these highly-qualified professionals to our management team, as well as the previously announced addition of Dr. Jim Cronoble, who has accepted a position as Vice-President of Exploration and replaced Irwin Olian on the Board following his recent retirement, The Company is now positioned to transition from exploration to helium development and productions. Mr. Cronoble’s qualifications, experience in exploration and production coupled with Ms. Rohlfing’s technical and advisory skills provide the Company with additional perspectives to bring the Company to the forefront of helium production.  Ms. Rohlfing is the daughter of Robert Rohlfing, Chairman and she resides in Alaska.

About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had been developing. The Company has its executive offices in Vancouver, Canada. The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.

On Behalf of the Board of Directors of Desert Mountain Energy Corp.

“Robert Rohlfing”                 
Robert Rohlfing
Chairman & CEO

For more information, contact:

Robert Rohlfing, President and CEO
E-mail: robert@desertmountainenergy.com

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.