Desert Mountain Energy Corp. · TSXV:DME

Desert Mountain Energy — Investor Presentation (September 2021)

23 slides from Desert Mountain Energy's investor presentation, September 2021

  1. Slide 1: Helium and Rare Earth Gases in the U.S. Southwest

    HELIUM AND RARE EARTH GASES IN THE U.S. SOUTHWEST

  2. Slide 2: Forward Looking Statements

    FORWARD LOOKING STATEMENTS Statements in this presentation that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors. Such forward-looking information represents management's best judgment based on information currently available. No forward-l

  3. Slide 3: Desert Mountain Energy Corp.

    DESERT MOUNTAIN ENERGY CORP. ✓ Exploration and development of Helium and Rare Earth Gas properties in the U.S. Southwest. ✓ High-grade tier 1,Helium project in Arizona ✓ Proven, successful management team that knows how to find, develop, package and vend projects. ✓ World Class technical team with d

  4. Slide 4: Management Team

    Management Team • Robert Rohlfing, CEO & Executive Chairman, is a seasoned oil & gas industry operations executive with a strong geological background and over 25 years’ experience in formulating, conducting and managing successful exploration, drilling, development and production programs for oil &

  5. Slide 5: Board of Directors

    Board of Directors • Robert Rohlfing, CEO and Executive Chairman, is a seasoned oil & gas industry operations executive with a strong geological background and over 25 years’ experience in formulating, conducting and managing successful exploration, drilling, development and production programs for

  6. Slide 6: Capital Structure

    CAPITAL STRUCTURE Outstanding shares: 71,035,574 Options: 6,267,500 Warrants: 3,445,101 Fully diluted: 80,748,175 TSX Venture Exchange: DME U.S. OTC: DMEHF Frankfurt Exchange: QM01

  7. Slide 7: What is Helium?

    What is Helium ? • An inert, monatomic gas that is non-flammable, colorless, odorless, tasteless, and has a boiling point of -452.07 f (-268.93 c), lowest of any element on earth. • Symbol is He and its atomic number is 2; part of the noble gas group. • Prevalent throughout the universe but rare on

  8. Slide 8: In Most High-Tech Coolant Applications there is No Substitute

    In Most High-Tech Coolant Applications there is NO Substitute Liquid Helium is used as a coolant for superconductor magnets in MRI machines and Particle Accelerators Used to purge gas in rocket engine systems

  9. Slide 9: Helium-Filled High Capacity Hard Drives

    Helium-Filled High Capacity Hard Drives increase capacity by 50% and energy efficiency by 23%. Now used to power industry’s largest data centers including Netflix Video Streaming. Helium Neon Laser Helium is required for Barcode Readers Manufacturing Fiber Optics

  10. Slide 10: 2017 Estimated Domestic Helium Consumption and Usage by Application

    2017 Estimated Domestic Helium Consumption and Usage by Application Estimated domestic consumption of Grade-A helium was 1.5 billion cubic feet (Bcf) in 2017, and it was used in these applications. Source : U.S. Geological Survey, Mineral Commodity Summaries, January 2018

  11. Slide 11: World Helium Production

    World Helium Production (Data in Billion Cubic Feet) 7 5.25 Canada Billion Cubic Feet Poland Russia Australia Algera 3.5 Qatar Bureau of Land Management United States 1.75 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: U.S. Geological Survey, Mineral Commodity S

  12. Slide 12: Natural Gas Gross Withdrawals and Production

    Natural Gas Gross Withdrawals and Production (Volumes in Million Cubic Feet) Area: [ U.S. ¥] _ Period-Unit: [Annual-Million Cubic Feet v} [26] Download Series History 9) Definitions, Sources & Notes Show Data By: View @ Data Series © Area 2015 2016 2017 2018 2019 FI History Gross Withdrawals * 0 32,

  13. Slide 13: Holbrook Basin

    Holbrook Basin

  14. Slide 14: Exploration for Helium and Oil & Gas in Arizona's Prolific Holbrook Basin

    • Early mover among junior explorers in the Helium space. • +85,000 acres of Tier 1 Helium prospects under lease throughout the Holbrook Basin. Among the highest He grades in world produced there ranging from 8% to 10% vs. benchmark commercial grades of 0.3% to 1%. EXPLORATION • World’s best address

  15. Slide 15: The Holbrook Basin

    • A large salt basin approximately 160 mi. by 100 mi. with thickened sedimentary rocks. • Situated in east-central Arizona South West of the defiance uplift near the South margin of the Colorado plateau in Apache, Navajo & Coconino Counties. THE • Highly prospective for Helium, hydrogen and other mi

  16. Slide 16: The Holbrook Basin

    THE HOLBROOK BASIN G H Diagrammatic northeast-southwest geologic cross section from the Mogollon Rim to the Defiance uplift (From Peirce, 1970). This Figure shows line of cross section. The distance from G to H is about 150 miles. Not to scale.

  17. Slide 17: Geological Setting

    GEOLOGICAL SETTING The Pinta Dome, Navajo Springs & East Navajo Springs gas fields characterized by: (i) anticlinal features; (ii) favorable reservoir rocks and (iii) impermeable caprock traps. Anticlinal Features • An anticline is an arch-shaped fold with the oldest beds at its core. Typically conv

  18. Slide 18: Reservoir Rocks

    Reservoir Rocks • Helium in the Holbrook Basin generally found in pay zones 60-70 ft. wide in the Coconino sandstones and Fort Apache limestones at depths of approximately 1050 ft. • These reservoir rocks are abundant in the Holbrook Basin. • Coconino sandstones are particularly hospitable to hydroc

  19. Slide 19: DME's time has come!

    DME’s time has come! DESERT MOUNTAIN ENERGY ANNOUNCES SIGNIFICANT HELIUM PERCENTAGES IN TWO NEW WELLS IN ARIZONA State 10-1 • Flow rate of 24,214 MCFGPD • The average gas analysis showed: ✓ Helium 7.1321% ✓ Nitrogen 77.0837% ✓ CO2 4.0183% ✓ Methane and other assorted minor gases. 2.6512% State 16-1

  20. Slide 20: DME's Lease Holdings & 2D Seismic Geophysical Lines, Holbrook Basin

    DME’s Lease Holdings & 2D Seismic Geophysical Lines, Holbrook Basin, Arizona Coconino County SEISMIC LINE MC-5N LINE MG4 METEOR CRATER PROSPECT | Navajo County | | 1 WINSLOW NORTH PROSPECT | Web Resource 251 | He Showings @ 28° Winslow ~ F sastuyate, Tucren O86 Tete “Besoil He — Holbrook HOLBROOK WE

  21. Slide 21: DME's Initial Drill Target at the Woodruff SE Area

    DME?’s Initial Drill Target at the Woodruff SE Area (Wenner P Sa<T6NTRI2E TASNIR22E _WOODRUFF SEINE 2 ib i fags / Oe : ety ~ cy ASLD - Desert Mountain Energy Corp Leases lil BLM/Desert Mountain Eneray Corp Leases lll Owned by Oxhers Hl t [Fast Down Din N fe Faute stip strike fe synatine [> Antaine W

  22. Slide 22: Plan to Production

    PLAN TO PRODUCTION • Total number of production wells projected 60 to 70 • Gross revenue per well based on crude helium @ $275mcf is projected at $8,942,000 • Total projected capital expenditure including all drilling and infrastructure over 6 years $45,000,000 • Production starting in 2022 with 4 w

  23. Slide 23: Contact Information

    CONTACT INFORMATION Robert Rohlfing, CEO & Executive Chairman Don Mosher, President & Director E-mail: robert@desertmountainenergy.com Email: don@desertmountainenergy.com U.S. Phone: (918) 752-7020 Phone: (604) 617-5448 Website: www.desertmountainenergy.com

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