Desert Mountain Energy Closes $9,125,000 Private Placement

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 closed it’s non-brokered private placement previously announced on 09/11/20 (the “Offering”), raising gross proceeds of CAD $9,124,899. Under the Offering the Company issued 5,703,062 units (the Units”) at a price of CAD $1.60 per Unit. Each Unit is comprised on one common share and one share purchase warrant (each, a “Warrant”), with each whole Warrant allowing the subscriber to purchase one additional Common Share for a period of two years at a price of CAD $2.00. The expiry of the Warrants may be accelerated at the sole discretion of the Company by written notice if the closing price for the Common Share on the TSX Venture Exchange shall be equal to or greater than CAD $3.50 for a minimum of ten (10) consecutive trading days. Accordingly, the Company issued at total of 5,703,062 Common Shares in the Offering as well as 5,703,062 whole Warrants.

The Company plans to use the proceeds for exploration, and development of the Company’s helium processing facilities, required power generation facilities, working capital and general corporate expenses.

In connection with the Offering, the Company paid an aggregate finders fees of (five) 5% percent in cash and or equivalent in units, along with 3% in finder warrants, exercisable at a price of $2.00 per share for a period of two years from closing, on a portion of the Offering. All securities issued in connection with the Offering will be subject to a customary 4-month hold pursuant to applicable Canadian Securities Laws.

This private placement contains related party transactions. These transactions are exempt from the valuation and shareholder exemption requirements of Multilateral Instrument 61-101 pursuant to, in addition to other sections, ss.5.5(a) and 5.7(1)(a) respectively of that instrument. A material change report was not filed prior to Closing of this placement due to the uncertainty of knowing, in advance, in addition to other potential changes, when and if the placement would close, if final TSXV approval would be obtained or if the material details related to the placement and related parties taking part would change.

According to Robert Rohlfing, CEO of the Company, “we greatly appreciate the overwhelming support we have garnered from the investment community around the world, particularly considering the extremely challenging market environment.”

Any securities referred to herein will not nor have been offered nor registered under the U.S. Securities act of 1933 (The “1933 ACT”) and may not be offered or sold in the United States or to a person in the absence of such registration or an exemption from the registration requirements of the 1933 ACT.

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.