DESERT MOUNTAIN ENERGY SIGNS LETTER OF AGREEMENT TO PURCHASE AND PROCESS RAW CRUDE HELIUM GAS

Rhea-AI Summary

Desert Mountain Energy Corp. (TSX.V: DME, OTC: DMEHF) announced a letter of agreement to purchase raw helium gas from PetroSun, pending approval and processing capacity. Pricing will be market-based at the time of purchase. The agreement allows Desert Mountain to assist PetroSun in future helium and hydrogen exploration, which may lower operational costs. The company aims to expand its gas purchase agreements and plans additional processing facilities based on its McCauley Helium Processing Facility, optimizing throughput for shareholders. CEO Robert Rohlfing emphasized commitments to environmental protection and operational efficiency.

Positive

• Agreement with PetroSun for purchasing raw helium gas may enhance supply.
• Potential for cost reductions through cooperation on exploration for hydrogen and helium.
• Plans for building additional processing facilities to maximize helium throughput.

Negative

• Dependence on market pricing for helium may lead to cost fluctuations.
• No specific commitments on helium percentages or volumes from PetroSun wells.

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

VANCOUVER, BC, Feb. 22, 2023 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. The Company is pleased to announce that it has signed a letter of agreement to purchase raw or crude helium gas from PetroSun, subject to approval by the Company and available processing capacity at the anticipated date of delivery. The agreement calls for pricing to be set based on market pricing conditions at the time of purchase and the gaseous chemical composition of the raw or partially processed gas. This agreement does not call for nor shall it be interpreted as a dedication of helium percentages or volumes from any PetroSun well(s) to any specific current or future Desert Mountain Energy processing facility. The Company has agreed to consider opportunities to explore for hydrogen on PetroSun leaseholds.

The Company has further agreed to cooperate and assist PetroSun with future exploration for both helium and hydrogen, where feasible for seismic testing and other geophysics, in order to lower overall costs. The Company feels that when applicable, it will assist in securing rig availabilities, and trucking, coupled with other testing and operational aspects.

"We look forward to working with PetroSun in their areas along with maximizing, when possible, our existing trucking, personal, and processing facilities," says Robert Rohlfing, CEO of DME. "In our discussions with the CFO & President, they were desirous of looking for ways to adapt some of our drilling and completion procedures to ensure the protection of the environment going forward. Our Company is committed to conducting our business activities in an environmentally sound manner."

DME will continue to actively pursue gas purchase agreements with other operators to purchase raw gas or crude helium that conforms to the Company's stated operational guidelines. The company plans to build and operate additional plants, based on our primary McCauley Helium Processing Facility, with features to handle a wide variety of noble gas mixtures. This strategy permits the Company to maximize throughputs by adding additional wells not owned and operated by DME for the benefit of our shareholders.

PetroSun is an Arizona-based company with over 250,000 acres of land in Arizona. It trades on the OTC pink sheets and is in the process of completing its newest well.

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 agreement did Desert Mountain Energy sign regarding helium gas on February 22, 2023?

Desert Mountain Energy signed a letter of agreement to purchase raw helium gas from PetroSun, subject to processing capacity and market pricing.

How will the pricing for raw helium gas be determined?

The pricing will be set based on market conditions at the time of purchase.

What are Desert Mountain Energy's plans for future processing facilities?

The company plans to build additional plants based on its McCauley Helium Processing Facility to maximize throughput.

What commitments has Desert Mountain Energy made regarding environmental protection?

Desert Mountain Energy is committed to conducting its activities in an environmentally sound manner and will work with PetroSun on methods to protect the environment during drilling and completion.

What is the stock symbol for Desert Mountain Energy?

The stock symbol for Desert Mountain Energy is DMEHF on the OTC market.