Desert Mountain Energy Announces Helium Discovery on Well

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Desert Mountain Energy Corp.  [TSXV: DME, U.S. OTC: DMEHF, Frankfurt: QM01] earlier announced that it has encountered significant showings of helium at its Holbrook Basin in East Central Arizona. Four formations in its fourth wildcat well proved up geological models involving the traps that will allow the Company to exploit the helium reservoirs.

Helium is normally associated with natural gas and produced as a byproduct with commercial grades of .3% to high grade being 1.5%. Desert Mountain grades are multiples higher 5% to 12% and associated with nitrogen that can be vented at the well head.

A decision was made to set production casing and cementing it into place is underway. In keeping with the original plan, indications suggest there was very limited background levels of gases other than Nitrogen and Helium present during drilling.

The Company will be scheduling the completion equipment and will not make further announcements with regards to this well until those completion procedures and testing are completed.

The Company is building a vertically integrated helium producer and will by the only primary producer in the world.

The Company also announced that it has been assigned a direct payee number by the US government, to enable immediate same day payment for gases shipped.

Shares of Desert Mountain were trading at CAD$4.35, up from the previous close of CAD$3.92.

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