DESERT MOUNTAIN ENERGY ANNOUNCES THAT IT HAS CLOSED ON THE THIRD TRANCHE OF ITS PRIVATE PLACEMENT

Rhea-AI Summary

Desert Mountain Energy Corp. (DMEHF) has announced the closure of the third tranche of its non-brokered private placement, raising an additional C$215,000 through the issuance of 860,000 Units at C$0.25 per Unit. The company has now raised a total of C$971,500 through 3,886,000 Units. Each Unit includes one common share and one warrant, allowing purchase of an additional share at CAD $0.35 until May 2, 2026. The private placement remains open until May 16, 2025. Finder's fees for this tranche included 68,800 warrants and C$17,200 cash. Units are subject to a hold period until September 3, 2025.

Positive

• Successfully raised additional C$215,000 in capital through private placement
• Total fundraising reached C$971,500 to date
• Warrant exercise price of CAD $0.35 represents 40% premium to unit price

Negative

• Dilutive effect on existing shareholders through issuance of new shares
• Additional dilution possible if warrants are exercised
• Low unit pricing at C$0.25 indicates challenging market conditions

TSX.V: DME
U.S. OTC: DMEHF
Frankfurt: QM01

VANCOUVER, BC, May 2, 2025 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (OTC: DMEHF) (Frankfurt: QM01) From the President of the Company. DME is pleased to announce that it has closed on the third tranche of its non-brokered private placement offering originally announced on February 4, 2025.  The Company has raised an additional C$215,000 through the issuance of 860,000 Units at a price of C $0.25 per Unit.  The Company has now raised a total of C$971,500 through the issuance of 3,886,000 Units. The balance of the private placement will remain open until May 16, 2025.

Each Unit consists of one common share of the Company and one share purchase warrant (the "Warrants"), with each whole Warrant allowing the subscriber to purchase one additional share of the Company for a period of one year ending May 2, 2026 at a price of CAD $0.35 per share. The expiry of the Warrants may be accelerated at the election of the Company by written notice if the closing price for the common shares on the TSX Venture Exchange shall be equal to or greater than CAD $0.75 per share for a minimum of ten consecutive trading days.  Finder's fees on the second tranche consisted of 68,800 finders warrants (but with no forced conversion) and $17,200 cash.  The Units will be subject to a 4-month plus one day hold period expiring September 3, 2025. 

ABOUT DESERT MOUNTAIN ENERGY

Desert Mountain Energy Corp. is a publicly traded resource company primarily focused on the exploration, development and production of helium, hydrogen, natural gas and condensate. The Company is focused on helium extraction from different raw gas sources in an environmental and economic manner supplying elements deemed critical to the renewable energy and high technology industries. 

We seek safe harbor

"Robert Rohlfing"
Robert Rohlfing
Exec Chairman & CEO

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in polices of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties.  Actual events or results may differ from the Company's expectations.

Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. Such forward looking statements and information herein include but are not limited to statements regarding the Company's anticipated performance in the future the planned exploration activities, receipt of positive results from drilling, the completion of further drilling and exploration work, and the timing and results of various activities.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company and its operations to be materially different from those expressed or implied by such statements. Such factors include, among others, changes in national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and the United States; financial risks due to helium prices, operating or technical difficulties in exploration and development activities; risks and hazards and the speculative nature of resource exploration and related development; risks in obtaining necessary licenses and permits, and challenges to the Company's title to properties.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the continued operation of the Company's exploration operations, no material adverse change in the market price of commodities, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company does not intend to, and nor does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

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SOURCE Desert Mountain Energy Corp.

FAQ

How much did Desert Mountain Energy (DMEHF) raise in its third tranche of private placement?

Desert Mountain Energy raised C$215,000 in the third tranche through the issuance of 860,000 Units at C$0.25 per Unit.

What is the total amount raised by DMEHF in its current private placement?

The company has raised a total of C$971,500 through the issuance of 3,886,000 Units.

What are the terms of the warrants in DMEHF's private placement?

Each warrant allows purchase of one additional share at CAD $0.35 until May 2, 2026, with potential acceleration if shares trade at CAD $0.75 for 10 consecutive days.

When does Desert Mountain Energy's current private placement close?

The private placement remains open until May 16, 2025.

What are the finder's fees for DMEHF's third tranche?

Finder's fees consisted of 68,800 finders warrants and C$17,200 in cash.