Mr. Robert Rohlfing reports

DESERT MOUNTAIN ENERGY ANNOUNCES ADEQ DETERMINATION FOR MCCAULEY HELIUM FIELD

Desert Mountain Energy Corp. has received a determination of no migration of pollutants from the Arizona Department of Environmental Quality (ADEQ) in relation to planned stimulation activities within the company's McCauley helium field in Arizona.

Based on the information submitted by the company, ADEQ determined that no aquifer protection permit (APP) will be required for the planned well stimulation activities associated with the McCauley field. The determination applies to four existing wells and one planned future well within the project area.

In its letter dated May 19, 2026, ADEQ stated that the planned operations are designed, constructed and intended to operate in a manner that will prevent migration of pollutants to aquifers or the vadose zone. ADEQ's determination referenced fracture modelling, geological isolation, well construction design, and the company's stimulation and recovery processes.

The company notes that it voluntarily implemented drilling and well completion practices designed to exceed baseline regulatory standards in order to provide multiple layers of protection for groundwater resources associated with its Arizona operations.

"We appreciate ADEQ's detailed technical review, and its consideration of the engineering, geological and operational safeguards incorporated into our well design and stimulation program," stated Robert Rohlfing, executive chairman and chief executive officer of Desert Mountain Energy.

ADEQ's determination remains subject to standard conditions, including continuing reporting and notification requirements related to well completion and mechanical integrity.

The company is currently evaluating next steps related to planned activities at the McCauley field and will continue to engage with regulators and stakeholders as appropriate. Management intends to provide shareholders with updates regarding operational timing and future developments as they become available.

About Desert Mountain Energy Corp.

Desert Mountain Energy 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.