Desert Mountain Energy Provides General Update

• The company is reconfiguring its Pecos Slope gas gathering system to replace aging infrastructure exceeding 45 years of age, aiming to reduce operating costs and increase natural gas sales.
• A legal victory was secured in the Arizona Court of Appeals regarding litigation with the City of Flagstaff; however, a subsequent lawsuit filed by the City has been moved to Federal Court.
• A new U.S.-based subsidiary, DME Carbon Cap LLC, was formed in Wyoming to manage carbon capture initiatives and potential uplisting to a senior U.S. exchange.
• Chief Operating Officer (COO) Mr. Orr resigned effective May 5, 2026, to focus on developing the Company's subsidiaries in the UK and United States.
• The company is awaiting a decision from the Arizona Department of Environmental Quality (AZDEQ) concerning requests related to previously drilled wells south of Winslow, Arizona.

• Management Turnover Risk: The resignation of the COO during a critical infrastructure reconfiguration phase introduces operational uncertainty. While Mr. Orr remains involved with subsidiaries, the loss of executive oversight on core US operations is a negative signal for execution risk in a capital-intensive project.
• Legal Uncertainty: Although an Arizona Court victory was achieved, the escalation to Federal Court creates prolonged regulatory and legal exposure. This delays certainty on the Flagstaff litigation which impacts operational permissions.
• Infrastructure Progress: The Pecos Slope upgrade aligns with the $3 million financing closed in April 2026. This is expected execution rather than new upside, as capital was already raised specifically for pipeline re-completion.
• Carbon Capture Subsidiary: Formation of DME Carbon Cap LLC is a strategic move but lacks immediate revenue visibility or third-party contracts, representing speculative long-term value creation rather than near-term material impact.
• Overall Impact: The news confirms ongoing operational work funded previously but highlights management instability and legal drag. It does not introduce new capital or major contract wins to offset the COO departure risk.

• Company: Desert Mountain Energy Corp. operates in natural gas, helium production, and critical minerals (REEs).
• Flagship Project: The Pecos Slope gas gathering system and Helium plant operations in Arizona/New Mexico are central to revenue generation.
• Strategic Initiatives: Includes the Roswell AI Data Center partnership ($3.2M non-dilutive funding), Helios Data Company for data monetization, and the Altech Batteries LOI for SNC battery manufacturing in New Mexico.
• Development Stage: The company is transitioning from exploration to infrastructure development (pipelines, storage) with a focus on diversifying revenue beyond traditional hydrocarbons into energy storage and carbon capture.