DESERT MOUNTAIN ENERGY RECEIVES SPACING EXEMPTION ORDER FOR THE McCAULEY HELIUM FIELD

Rhea-AI Summary

Desert Mountain Energy Corp. (TSXV: DME; OTC: DMEHF) announced that it has received an exemption from the Arizona Oil and Gas Commission, allowing it to drill wells on 40 acres instead of the standard 640 acres. This exemption facilitates the exploration of hydrogen and helium resources in the McCauley Processing Facility, where flow lines for three proposed hydrogen wells have been installed. The company plans to launch a geophysics program in April 2023, with drilling set for June and results expected by July. Additionally, Desert Mountain Energy has been recognized in the TSX Venture 50 as a top-performing company.

Positive

• Received a spacing exemption to drill on 40 acres instead of 640 acres, enhancing resource exploration.
• Installation of flow lines for three proposed hydrogen wells indicates progress in operations.
• Included in the TSX Venture 50, showcasing recognition as a top-performing company.

Negative

• None.

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

VANCOUVER, BC, Feb. 21, 2023 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (FSE: QM01) From the President of the Company. The Company is pleased to announce that it has been granted an exemption to the 640-acre spacing requirements allowed by the State of Arizona. This exemption will allow the Company to drill wells on 40 acres of spacings as opposed to the usual 1 well per section that is the normal practice allowed by the Arizona Oil and Gas Commission. Flow lines for the 3 proposed hydrogen wells have been trenched and buried to transport the raw gaseous mixture for separation at the McCauley Processing Facility. The plant design allows for the hydrogen to be separated from the other elements while at the same time allowing the capture of both helium and hydrogen for purification. The 640-acre spacing exemption allows DME and Beam Earth Ltd. to explore and better optimize hydrogen and helium discoveries in upper possible formations.

"Beam Earth's expertise in commercializing hydrogen allows us to look at the potential of using the hydrogen and nitrogen found in our fields to investigate the manufacture of ammonia," says Robert Rohlfing, CEO of DME. "The J.O.A. signed between us reduces our costs and supplies the expertise to exploit this discovery."

A geophysics program will be launched in April 2023, and drilling is planned for early June 2023 with results expected in early July 2023. Furthermore, the Company will be looking to maximize potential development through all available manners including Federal IRA and business development opportunities.

TSX Venture 50

The Company is honoured to be included on the TSX Venture 50 list of top-performing companies. The TSX Venture 50 is a ranking of the top performers among 1649 companies on the TSX Venture Exchange. The companies on this year's list have demonstrated their ability to access capital for growth and scale up their business for success.

ABOUT DESERT MOUNTAIN ENERGY

Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on exploration, development and production of helium, hydrogen and noble gases. The Company is primarily looking for 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 is the significance of Desert Mountain Energy's spacing exemption?

The spacing exemption allows Desert Mountain Energy to drill hydrogen and helium wells on 40 acres, significantly enhancing exploration efficiency.

When is Desert Mountain Energy planning to drill its new wells?

Drilling is planned for early June 2023, with results expected by early July 2023.

What recognition has Desert Mountain Energy received recently?

Desert Mountain Energy has been included in the TSX Venture 50 list, recognizing it as one of the top-performing companies.

What resources is Desert Mountain Energy focusing on?

Desert Mountain Energy primarily focuses on the exploration and production of helium, hydrogen, and noble gases.