DESERT MOUNTAIN ENERGY SIGNS LOI FOR SNC BATTERY PLANT IN ROSWELL, NEW MEXICO

Rhea-AI Summary

Desert Mountain Energy (OTC:DMEHF) signed a non-binding LOI to form a joint venture to build and operate a sodium–nickel–chloride (SNC) battery manufacturing facility in Roswell, New Mexico, announced Dec 2, 2025.

The plan proposes using produced water from regional oil and gas wells for cooling and processing, extracting sodium and certain rare earth elements (REEs) for sale, and powering operations with local natural gas to support an adjacent AI data-center. Parties will proceed to due diligence and definitive JV negotiations.

Positive

• Signed non-binding LOI to form JV for Roswell SNC battery plant
• Planned produced-water reuse to reduce aquifer withdrawals
• Sodium and REE extraction creates potential additional revenue streams
• Integrated power plan using local natural gas for facility and AI center

Negative

• LOI is non-binding and subject to due diligence and JV agreement
• Forward-looking statements include material uncertainties and risks
• Company reports minimal produced water from its own wells

TSXV: DME,
U.S. OTC: DMEHF
Frankfurt: QM01

VANCOUVER, BC, Dec. 2, 2025 /PRNewswire/ - DESERT MOUNTAIN ENERGY CORP. (the "Company") (TSXV: DME) (U.S. OTC: DMEHF) (Frankfurt: QM01) from the President of the Company. DME is pleased to announce it has signed a non-binding Letter of Intent ("LOI") to form a joint venture to build and operate a sodium–nickel–chloride ("SNC") battery manufacturing facility in Roswell, New Mexico. The proposed operation would utilize produced water from regional oil and gas wells as part of an environmentally responsible cooling and processing system designed to support both battery production and a planned artificial-intelligence ("AI") data-center complex.

Strategic Use of Produced Water & Integration with AI Data Center

Under the contemplated structure, produced water from area operators would be treated and repurposed for cooling and processing needs, thereby significantly reducing the volume of water extracted from the aquifer, as well as lowering operating costs for smaller oil and gas producers. Desert Mountain Energy's own wells generate minimal produced water, but the Company's processing expertise positions it to serve as a strategic solutions provider to neighboring operators.

The initiative also supports the Company's plan to use its natural-gas resources to generate local electricity for the produced-water system and the adjacent AI data-center infrastructure, creating a vertically integrated and energy-efficient footprint.

Sodium, REE and By-Product Management

As part of the produced-water treatment process, salts and certain critical rare earth elements ("REEs") are extracted and separated.

• Sodium will be dried and utilized directly in the production of SNC battery units.
• Isolated REEs will be dried, sealed, and shipped to qualified facilities for further refining.

This creates multiple value-added revenue streams while minimizing waste and maximizing the commercial usefulness of extracted materials.

About SNC Battery Technology

Sodium–nickel–chloride batteries are known for their stability, long lifecycle, and strong safety profile. Unlike lithium-ion systems, SNC batteries cannot burn or explode, making them well-suited for grid support, industrial power systems, and data-center applications. Altech Batteries Ltd., a global leader in the space, is currently constructing a US$170 million SNC plant in Saxony, Germany, underscoring the technology's growing commercial relevance.

Altech's publicly available research notes several advantages for SNC chemistry, including the potential for alumina sourced from recycled specialty aircraft components—supporting broader circular-economy initiatives.

Economic Benefits for Roswell and the State of New Mexico

The joint venture and associated AI-infrastructure development are expected to create new job opportunities and diversify revenue sources for Chaves County and the State of New Mexico. Increased support services for smaller oil and gas operators—including lower disposal costs and extended well life—are expected to lead to higher production levels, which in turn increase tax contributions to local schools, counties, and state programs.

The initiative aligns with local, state, and federal programs offering incentives for energy-transition manufacturing, critical-materials management, and advanced-technology deployment, including elements referenced in yesterday's Genesis Mission Executive Order from the White House.

Next Steps

The parties will now begin detailed due diligence, engineering evaluation, and the development of a definitive joint-venture agreement. Further updates will be provided as milestones are reached.

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 and natural gas. 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

What did Desert Mountain Energy (DMEHF) announce on December 2, 2025?

DMEHF announced a non-binding LOI to form a JV to build an SNC battery plant in Roswell, New Mexico.

How will produced water be used in the DMEHF Roswell project?

Produced water from regional wells would be treated and repurposed for cooling and processing to lower aquifer withdrawals and operating costs.

Will Desert Mountain Energy (DMEHF) extract valuable materials from produced water?

Yes; the plan calls for extracting sodium for battery production and isolating certain REEs for further refining and sale.

What is the energy plan for the proposed Roswell facility and AI data center?

The company plans to use its natural-gas resources to generate local electricity supporting the produced-water system and adjacent AI data center.

Is the Roswell SNC battery agreement finalized for DMEHF?

No; the announcement is a non-binding LOI and parties will conduct due diligence and negotiate a definitive JV agreement.