Desert Mountain Energy Corp. announced that it has signed a binding letter of intent to purchase the Pecos Slope West Abo Gas Field and gas gathering system located in Chaves County, New Mexico. The company will close the purchase on June 30, 2023, from a privately held company and will immediately assume operations and revenue from the existing 188 gas wells and 1 water disposal well.

Currently, there are no compression, helium processing or NGL stripping facilities located on-site nor are any of the wells on any type of artificial lift. This acquisition follows in line with the Company's previously disclosed plans and use of proceeds to utilize mobile modular and scalable helium processing plant design, where applicable, elsewhere in the United States to maximize shareholder value. The third-party acquisition cost is $500,000.00 for the gathering system and $2,000,000.00 cash for the wells.

The Company will continue to review and seek strategic opportunities in this helium-bearing natural gas area. This awaits recompletion efforts. The Company is not looking to drill any wells in the near term.

Prior ownership of the field suggested a total in excess of 150 additional new wells could be considered to fully develop all aspects of the field. The company is also receiving a permitted water disposal well as part of the overall package. This well is not for commercial purposes but will serve to meet the currently estimated 30 bbls.

of daily water production. The Company will continue to work with other companies to capture and process all exhaust from operations in order to make this a net zero-carbon operation.