Desert Mountain Energy Closes $3,000,000 Offering

• Event: Closing of a brokered private placement raising $3,000,000 CAD.
• Terms: 6,976,744 units sold at $0.43 per unit (1 share + 1 warrant).
• Warrants: Exercisable at $0.70 through April 2029.
• Use of Proceeds: Re-completion of gathering pipeline from southern wells to processing facility, working capital, and general corporate purposes.
• Agent: Haywood Securities Inc. (best-efforts basis).
• Context: Follows the March 27, 2026 announcement of the same offering; confirms execution prior to liquidity exhaustion.

• Liquidity Relief: Critical for survival given cash on hand was only $54,070 as of December 31, 2025. The $3M infusion extends operational runway significantly.
• Dilution Impact: Issuance of ~7 million units represents approximately 7% dilution to existing shareholders (excluding warrants). Warrants add further potential overhang at $0.70 strike price.
• Execution Confirmation: Validates the company's ability to raise capital despite low share price volatility, but does not alter fundamental revenue generation capabilities immediately.
• Market Reaction: Stock declined from March 24 high of $0.60 to April 8 close of $0.41, suggesting investors priced in dilution risk rather than celebrating the liquidity event.
• Strategic Alignment: Proceeds directed toward pipeline re-completion supports the core gas production narrative and the AI data center partnership infrastructure requirements.

• Core Business: Natural gas production, helium extraction (He-3/He-4), and emerging AI infrastructure services.
• Flagship Projects:
  • Holbrook Basin Helium Project (Arizona): Exploration and evaluation asset valued at $20.9M; leases expire between June 2026 and December 2030.
  • West Pecos Slope Abo Gas Field (New Mexico): Primary production asset including processing plant ($26.6M value).
  • Helios Data Company: New subsidiary to monetize proprietary data from noble-gas plants using AI-driven valuation models.
• Strategic Pivot: Moving from pure resource exploration toward midstream utility provider for AI and defense sectors (JDEC membership, Roswell partnership).