Desert Mountain Energy Boosts Financial Position with C$514,000 Private Placement

Desert Mountain Energy Corp. (TSXV: DME, U.S. OTC: DMEHF, Frankfurt: QM01) has successfully closed the first tranche of its non-brokered private placement, raising C$514,000. The Company issued 4.8 million units at C$0.25 per unit, with each unit consisting of one common share and one share purchase warrant. This strategic move strengthens Desert Mountain Energy's financial position and sets the stage for future growth.

The closing of the first tranche of the private placement has a positive impact on Desert Mountain Energy's financial position and future growth prospects. The Company raised C$1.2 million from the sale of 4.8 million units, with each unit consisting of one common share and one share purchase warrant. This capital injection allows the Company to:

1. Strengthen its balance sheet: The additional funds provide Desert Mountain Energy with a stronger financial position, enabling it to better manage its operations and potential market fluctuations.
2. Fund development projects: The proceeds will be used for the development of the Company's New Mexico natural gas and Helium projects, as well as its Arizona Helium projects. This investment in growth initiatives can lead to increased revenue and profitability in the future.
3. Enhance working capital and general corporate purposes: The funds raised can be used to improve the Company's working capital and support its general corporate activities, ensuring its ongoing operations and strategic planning.

The partnership with Beam Earth Ltd. for hydrogen exploration in Arizona and New Mexico also contributes to Desert Mountain Energy's long-term success and market position. The agreement allows DME to focus on its advanced helium extraction technology and maximize return on investment without issuing new shares, which could dilute existing shareholders' stakes. Beam Earth Ltd. is expected to invest between CDN $3.6 and $4.3 million before DME incurs more than minimal expenditures.

The growing demand for renewable energy, the shortage of helium, the critical role of these elements in high technology industries, and government support and regulations are the key factors driving the demand for helium and hydrogen. These factors have led Desert Mountain Energy to strategically focus on these elements, as evident in their partnership with Beam Earth Ltd. for hydrogen exploration and their initiation of helium production.

In conclusion, the closing of the first tranche of the private placement and the partnership with Beam Earth Ltd. for hydrogen exploration in Arizona and New Mexico offer Desert Mountain Energy a non-dilutive growth opportunity, diversify its revenue streams, and strengthen its operational capabilities. These factors contribute to DME's long-term success and enhance its market position in the energy sector.