Desert Mountain arranges $3-million private placement

Executive Summary

• Desert Mountain Energy Corp. has entered into an agreement with Haywood Securities Inc. to raise up to $3,000,000 through a best efforts private placement offering.
• The company will issue up to 6,976,744 units at a price of $0.43 per unit, with each unit consisting of one common share and one common share purchase warrant.
• Net proceeds are designated for tying into the Kinder Morgan natural gas pipeline, recompleting the gathering pipeline system, and for general working capital.

Key Details

• Offering Structure: Best efforts private placement using a LIFE (Limited Issuer Filing Exemption).
• Price: $0.43 per unit.
• Maximum Gross Proceeds: Up to $3,000,000.
• Units Issued: Up to 6,976,744 units.
• Warrant Terms: Each unit includes one common share purchase warrant, entitling the holder to acquire one common share at an exercise price of $0.70 per share. Warrants are exercisable for 36 months following the closing date.
• Use of Proceeds:
  • Tie-in to the Kinder Morgan natural gas pipeline.
  • Recompletion of the gathering pipeline system from wells in the south of the property to the processing facility.
  • General working capital and corporate purposes.
• Agent Compensation:
  • Cash commission of 6% of gross proceeds.
  • Units equal to 6% of the units sold.
  • Corporate finance fee of 6% of gross proceeds (plus applicable taxes), paid 50% in cash and 50% in units.
• Regulatory & Jurisdiction: Offered to residents of Canada (excluding Quebec) and jurisdictions outside Canada (excluding the United States) on a private placement basis under National Instrument 45-106.
• Closing: Anticipated to close no later than April 8, 2026, subject to TSX Venture Exchange approval.
• Offering Document: Available under the company's profile at SEDAR+ and on the company website, dated March 27, 2026.