DESERT MOUNTAIN ENERGY ANNOUNCES $3.2M NON-DILUTIVE FUNDING AGREEMENT WITH ROSWELL INFORMATION PARK

Executive Summary

• Desert Mountain Energy Corp. entered a non‑dilutive financing agreement with Roswell Information Park LLC for an initial US $3.2 million to fund pipeline, power infrastructure and gas‑storage development supporting a hyperscale AI data center campus.
• The funding will enable construction of ~14 miles of 8‑inch pipeline, a 20‑inch backup pipeline, ROW acquisition, engineering work and drilling of 13 wells (~3,900 ft) targeting natural gas, helium‑3/4 and hydrogen in the Lower Abo Sand Formation.
• The agreement is structured to preserve shareholder equity while creating future revenue streams from gas storage operations, pipeline management, processed gas/helium sales and CO₂ capture/utilization initiatives.

Key Details

• Funding Commitment: Approximately US $3.2 million (non‑dilutive). Additional contracts may be executed as milestones are met.
• Infrastructure Funding Includes:
• Final engineering, right‑of‑way acquisition, and construction of ~14 miles of 8‑inch pipeline to deliver natural gas to the “behind‑the‑meter” power generation site.
• Main pipeline connection costs for long‑term natural gas supply.
• Construction of a 20‑inch backup pipeline to maintain power supply during critical conditions.
• Gas Storage Development:
• Base geological study identified a formation capable of up to 3.0 BCF underground natural gas storage within the current leasehold.
• Plan to drill 13 wells to ~3,900 ft, beginning with core sampling; targets include Lower Abo Sand Formation for natural gas and helium potential.
• Helium & Hydrogen Potential: All drilled wells will be evaluated for previously non‑produced zones possibly containing helium‑3, helium‑4, and hydrogen. The storage site lies on a trend prospective for white hydrogen; future work may integrate hydrogen into the gas stream or convert it to power via fuel cells.
• Strategic Revenue Opportunities:
• Gas storage operations.
• Local pipeline management services.
• Future CO₂ capture and utilization projects.
• Sales of processed natural gas and helium production.
• CEO Comment: “This agreement represents a critical step forward in building the infrastructure required to support hyperscale data centers in New Mexico… while positioning the Company to generate long‑term revenue from gas storage, pipeline operations, and future emission solutions.” – Robert Rohlfing, Exec Chairman & CEO

Notable Quotes

• Robert Rohlfing, Exec Chairman & CEO: “The funding arrangement ensures Desert Mountain Energy advances its strategic projects without shareholder dilution, while positioning the Company to generate long‑term revenue from gas storage, pipeline operations, and future emission solutions.”