ARIZONA COURT OF APPEALS RULES IN FAVOUR OF DESERT MOUNTAIN ENERGY

Rhea-AI Summary

Desert Mountain Energy Corp (TSXV: DME, U.S. OTC: DMEHF) has secured a significant legal victory as the Arizona Court of Appeals, Division One, ruled in its favor on March 4, 2025. The 12-page opinion declared the City of Flagstaff's claims against the company null and void, instructing the Trial Court to enter summary judgment for DME.

The ruling marks the end of a four-year legal battle for the helium exploration and production company. Desert Mountain Energy focuses on extracting helium, hydrogen, and natural gas from various raw gas sources, prioritizing environmental and economic efficiency to supply critical elements to the renewable energy and high technology industries.

Positive

• Legal victory removes obstacles to operations
• Court ruling eliminates legal uncertainty

Negative

• None.

Insights

Legal Analyst

Desert Mountain Energy secured a significant legal victory against the City of Flagstaff after a four-year dispute. The Arizona Court of Appeals issued a decisive 12-page ruling declaring Flagstaff's claims against DME null and void, with explicit instructions for the Trial Court to enter summary judgment in the company's favor.

This ruling represents a complete vindication for Desert Mountain Energy. The Court's decision to order summary judgment is particularly noteworthy, as it indicates the judges found no material factual disputes and determined DME was entitled to prevail as a matter of law. Such comprehensive legal victories are relatively rare in complex litigation involving municipalities.

While the specific nature of Flagstaff's claims wasn't detailed, the dismissal removes what was clearly a significant legal overhang for the company. Resource companies operating in environmentally sensitive sectors frequently face regulatory and municipal challenges that can dramatically impact their ability to execute business plans and secure necessary operational permits.

The resolution eliminates potential financial liabilities, reduces ongoing legal costs, and removes uncertainties that likely complicated DME's strategic planning. With this legal impediment cleared, management can redirect resources toward core operations in helium extraction and development, areas critical to technology and renewable energy industries.

TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01

VANCOUVER, BC, March 4, 2025 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME), (U.S. OTC: DMEHF), (Frankfurt: QM01) from the President of the Company. Desert Mountain Energy Corp. is pleased to announce that on March 4, 2025, the Arizona Court of Appeals, Division One, issued a 12-page opinion in which it found that the City of Flagstaff's claims against Desert Mountain Energy Corp were null and void. The Court instructed the Trial Court to enter summary judgment in favour of DME.

Robert Rohlfing, Executive Chairman of the Board and CEO of Desert Mountain Energy Corp, commented, "This has been a long, tedious four years. We are thankful for the wise counsel our attorneys have provided us, and we acknowledge the Court of Appeals' careful consideration of our requests."

The company will issue further updates on these matters when deemed appropriate.

ABOUT DESERT MOUNTAIN ENERGY

Desert Mountain Energy Corp. 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

"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. 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.

Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and the United States; financial risks due to helium prices, operating or technical difficulties in exploration and development activities; risks and hazards and the speculative nature of resource exploration and related development; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

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SOURCE Desert Mountain Energy Corp.

FAQ

What was the outcome of Desert Mountain Energy's (DMEHF) legal battle with Flagstaff?

The Arizona Court of Appeals ruled in favor of Desert Mountain Energy on March 4, 2025, declaring Flagstaff's claims null and void and ordering summary judgment for DME.

How long did the legal dispute between DMEHF and Flagstaff last?

The legal battle lasted four years before reaching resolution in March 2025.

What are Desert Mountain Energy's (DMEHF) main business operations?

The company focuses on exploration, development, and production of helium, hydrogen, and natural gas, supplying critical elements to renewable energy and high-tech industries.

Which court issued the ruling in favor of Desert Mountain Energy (DMEHF)?

The Arizona Court of Appeals, Division One, issued the 12-page opinion ruling in favor of DME.