Desert Mountain Energy from the President of the Company. The company is pleased to announce that it has signed a new agreement with Beam Earth Ltd. to commence H₂ exploration in Arizona, targeting the fourth quarter of 2024. The previously announced agreement dated July 18, 2022, is superseded by the new arrangement. Under the terms of the new agreement, Beam Earth Ltd. will finance the following:

• A payment of $225,000 to DME within 90 days of the signing date
• Covering all geophysical and associated drilling costs, including the completion of pilot wells
• Engineering for a combined white H₂/helium plant, leveraging DME's H₂ separation unit currently located at the McCauley Field in Arizona
• The planning for a green H₂ plant in Arizona
• The planning and engineering for ammonia and loading facilities in New Mexico and Arizona, as applicable
• Conducting geophysical work in Chaves County, New Mexico, focused on white H₂
• The planning and engineering work for blue H₂ processing/reformation and power generation plants in New Mexico.

DME will be the operator of record for all wells and plants in Arizona and New Mexico. Additionally, the Company will retain 100% rights, titles, and interests for all its currently owned wells in New Mexico, as well as wells #1-4, #6, and #8 in Arizona. DME and Beam Earth Ltd. will jointly share in the H₂ and helium profits from new wells in Arizona. This partnership also paves the way for DME to process helium from additional potential sources in Arizona, should such opportunities arise.

"As previously emphasized, we remain committed to our Arizona projects," said Robert Rohlfing, CEO of Desert Mountain Energy Corp. "This agreement offers a non-dilutive growth opportunity, allowing DME to focus on its advanced helium extraction technology and maximize return on investment. With the up-front payment and the planned work extending through Q1 of 2025, Beam Earth Ltd. is expected to invest between CDN $3.6 MM and $4.3 MM before DME incurs more than minimal expenditures."

The total funding by Beam Earth Ltd. in Arizona will be determined by the quantity of white H₂ generated from wells and their decision on the extent of utilizing DME's properties for the most cost-effective production of green H₂.