DESERT MOUNTAIN ENERGY CORP. announced that it has successfully completed the disassembly of the helium processing plant. All components have been transported to the West Pecos Slope Abo Gas Field and reassembly has begun.

The Company expects this process to take five to six weeks and plans on starting up the plant shortly after pressure testing of critical components is completed. The Company has initiated the process of pigging flow lines, replacing specific portions of the flow lines and implementing maintenance procedures for the flow lines. Pigging of lines will help to lower flowing pressures from the furthest distant wells.

The Company has also begun the process of removing choke points and will continue that process over the next 3-4 months. DME has purchased smaller volume compressors to initially enable boosting production from the wells containing the higher levels of helium. This includes independent gas analysis on individual wells to ensure a correlation between the flow tests originally provided to by the seller.

DME's goal continues to initially target wells where tests and the previous tests from the past two years of production showed helium values to be above 0.7% and have an initial aggregate plant throughput for helium production above 0.50%. Currently, well flow line pressures have risen over the past month across the entire field due to the IACX gas plant being down for repairs and maintenance. In one example, the well furthest south was still selling some gas with the meter pressure showing at 184#psi.

This well is located at the end of almost 9 miles of 2" flow line and over time, will incorporate boost compressors to cost-effectively increase production from outlying wells. Under current contracts, the Company will not be due to pay royalties on any inert gases recovered through plant operations. As mentioned previously by the Company, the condensate values and BTU values can vary widely between the wells.

DME has initiated discussions with natural gas end users regarding the purchasing of natural gas after the current contract expires. All necessary permits for current operations are in hand.