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: [email protected]
(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.