Desert Mountain Energy Signs Long-Term Lease Agreement with Roswell Information Park Developer
Vancouver, May 29, 2026 - Desert Mountain Energy Corp. (the "Company") (TSX.V: DME, U.S. OTC: DMEHF, Frankfurt: QM01) is pleased to announce that it has entered into a 25-year lease agreement with Roswell Information Park LLC (RIP) for a proposed off-grid data center. The agreement further provides for an additional five-year term. The project will be located on property previously purchased by the Company. The approximately 154-acre site near Roswell, New Mexico, is intended for a multi-use development. The property does not include mineral, oil, or gas rights; however, limited water rights are included. The agreement also addresses two previously signed contracts with RIP. One agreement related to natural gas purchasing and the other to the construction of a gas transportation line. As the selected location is not within the same section, township and range previously planned by the developer, it was agreed that DME will be responsible for developing a new route, determining an appropriate price adjustment for missed payments (please see news releases dated July 2, 2025 and September 30, 2025) and additional pipeline length. A separate long-term gas supply contract is expected to be executed prior to construction and will reflect the forecast long-term demand for natural gas.
The agreement to lease the majority of the property to RIP includes modest monthly lease payments. In addition, DME will receive a 5% management fee on all natural gas used by the facility for the operational lifetime of the project. This fee is irrespective of which entity or entities produce or transport the gas. The agreement also provides for a 2% management fee payable to DME on any excess electricity generated by the operators of the data center and returned to the power grid for the lifetime of the information park. The agreement further includes significant penalty payments payable to DME should the tenant withdraw at any time within the first 24 months. RIP can exercise an option to purchase if a bonus payment is made by a preset date, for a to-be-determined price not to exceed 4X DME's purchase price for the property. All management and override fees continue for 25 to a maximum of 30 years.
RIP continues to work closely with DME in its efforts to identify a potential pathway for the utilization of water produced by other participants in the energy sector. These efforts include the application of newer technologies for produced water treatment, coupled with on-site power generation, with the goal of reducing the burden of large-scale infrastructure costs typically associated with data center developments on the local community. RIP is also refining its "closed loop" operational design to further mitigate community concerns.
The agreement further carves out 14 acres for DME to utilize for a potential NaCL or Na-ion based battery plant. RIP also reserves the right to be one of the first customers for those batteries for use in the information center's redundant power supply systems.
The New Mexico Economic Development Department has provided a "letter of support" for the proposed hyperscale data center project in Chaves County, New Mexico. DME was also referenced as part of the project's "Enhanced Gas Supply Security" component.
The Roswell-Chaves County Economic Development Corporation (RCCEDC) has also provided a letter of strong support for the proposed hyperscale AI data center development project. DME was similarly referenced as an additional component of the project's "Enhanced Gas Supply Security."
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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
For more information, contact:
Don Mosher, President & Director
Tel: (604) 617-5448
E-mail: Don@desertmountainenergy.com
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 that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. Such forward looking statements and information herein include but are not limited to the Offering, the anticipated closing date of the Offering, the intended use of proceeds, approval of the Offering from the TSX Venture Exchange, the filing of the Offering Document. 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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