DMEHF - A Report from the CEO: Robert Rohlfing

(TheNewswire)

Vancouver, British Columbia - October 26 , 2020 - TheNewswire - DESERTMOUNTAIN ENERGY CORP. (the "Company") (TSXV:DME),(OTC:DMEHF), (Frankfurt:QM01)

3RD QUARTER REVIEW

The third quarter has been very significant for theCompany.

• - Received drill permits for wells State 10-1 and State16-1.

  - Successfully completed both wells, significant payzones were discovered in both holes.

  - Sampling proved significant concentrations of heliumin both wells with excellent well pressure, low CO2 concentrations.Purifying the helium will not involve any costly or problematic issuesdue to the mix of gases in our wells.

  - Completed a $13 million financing priced at$1.60.

  - Added 3 new board members to the team.

  - Began design work on a solar powered processingfacility

VERTICAL INTEGRATION

The Company is planning on becoming a verticallyintegrated helium producer selling directly to end users. Offtakediscussions that have taken place over the last 2 years with heliumprocessors made it evident that over 40% of our revenues would go tosupport their "processing system". Prices for finishedproduct have varying price points that range from $490 per mcf forshield gas to $3,200 per mcf for extreme high purity gas. We believethat the shareholders should benefit from the greater revenue achievedby finishing our own helium.

PRODUCTION

The Company plans to be in production starting the4 th quarter of 2021. To achieve this goal, we will undertake the generalfollowing items:

• - Finish permitting for a third well in the westernpart of the Holbrook basin to prove-up additional low CO2, highnitrogen content raw gas.

  - Drill third well in early November, secure gasanalysis and flow rates

  - Contract with Gas Engineering firm to begin design ofboth well site Nitrogen stripping and final processingfacilities.

  - Contract with power engineering firm to finalizesolar generation site requirements. Goal is to become as close tocarbon neutral as possible

  - Finalize & sign contracts with surface owners,for both power generation site and processing facilities.

  - Begin archeological studies and reviews for both wellsites 4-6 and seismic acquisition

  - Exercise options for up to additional 42,000 acres ofleases or some portion thereof.

  - After further gas analysis and flow testing, providepossible end users with options for purchase agreements and executethem when most advantageous for DME.

  - Secure Tractor trailer rigs as required byagreements.

  - Train plant personnel and secure additional contractdrivers for trucking aspects

DME'S 4-YEAR PLAN:

We plan to start producing from 4 to 6 wells the fourthquarter of 2021. Our success in raising $13 million gives us the moneyto rapidly move forward with the first phase of our plans. Fulldevelopment of our land package is expected to take approximately 4years.

The 4-year plan to full production.

• - Total number of wells projected to be 50-55

  - Total projected capital expenditures including alldrilling and infrastructure over 6 years is $45,000,000

  - Upgrade helium to end users will result in a shorterpayback period.

  - Signing contracts with end users will stabilizefuture price swings in the helium market and give us a competitiveedge.

We realize this is a very ambitious plan, however, withthe success of the first 2 wells proving our geological model, it canbe achieved. There is a lot of work and planning to be done along withexpanding our team.

ABOUT DESERT MOUNTAIN ENERGYCORP.

Desert Mountain Energy Corp. is a publicly tradedexploration and resource company focused on the discovery anddevelopment of rare earth gas fields in the US. The company isprimarily looking for elements deemed critical to the green energy andhigh technology industries. We are an equal opportunityemployer.

We seek safe harbor

Robert Rohlfing, CEO

For more information, contact:

Don Mosher, Vice President of Finance604-617-5448

E-mail: don@desertmountainenergy.com

The TSX Venture Exchange & IIROC hasnot reviewed and does not accept responsibility for the adequacy oraccuracy of the information contained herein. The statements made inthis press release may contain certain forward-looking statements thatinvolve a number of risks and uncertainties. Actual events or resultsmay differ from the company's expectations.

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