Desert Mountain Energy joins U.S. acquisition initiatives, advances strategic helium discussions, and seeks TSXV approval to extend 3.9 million warrants.
Desert Mountain Energy Corp. has announced important developments involving its participation in key United States government and industry initiatives, alongside an update regarding the extension of certain outstanding share purchase warrants. The update was issued by the President of the Company and outlines progress that underscores Desert Mountain Energy’s growing engagement with strategic government stakeholders and its continued focus on long-term value creation.
Participation in U.S. Government and Industry Initiatives
Desert Mountain Energy Corp. has confirmed that it was invited to contribute to the Acquisition Transformation Strategy (ATS), a significant U.S. government initiative aimed at modernizing the federal acquisition process. The ATS program represents a shift away from traditional requirements-based procurement toward a solution-oriented acquisition framework. This approach is designed to better align government procurement with real-world operational challenges by emphasizing outcomes, innovation, and flexible solutions rather than rigid specifications.
As part of this initiative, the Company was asked to prepare and submit its views and expertise, reflecting recognition of its technical capabilities and relevance to emerging national priorities. Management views this participation as an important step in positioning the Company as a credible contributor to discussions that influence future government procurement and industrial strategy, particularly in specialized resource sectors.
In addition, Desert Mountain Energy was invited by the Office of the Assistant Secretary of War for Industrial Base Policy (OASW(IBP)) and the Defense Industrial Base (DIB) to take part in ATS-related sessions held in conjunction with the Department of War (DoW) Symposium. These sessions took place on January 20, 2026, in Phoenix, Arizona, and brought together government officials, defense stakeholders, and industry participants to explore procurement reform and supply chain resilience.
The Company’s involvement in these sessions is specifically intended to address discussions around potential helium off-take pathways. Desert Mountain Energy continues to collaborate closely with U.S. National Laboratories on matters relating to both off-take agreements and end-use applications for helium-3 and helium-4. Management believes these activities are well aligned with U.S. national security interests, particularly given the strategic importance of helium isotopes in advanced technology, defense systems, and scientific research.
Beyond the United States, the Company has also engaged with representatives from NATO and the UK Ministry of Defence (MoD). These interactions are seen as further strengthening Desert Mountain Energy’s long-term growth prospects, particularly with respect to its assets and opportunities in Devon, United Kingdom. Management considers these international discussions as laying groundwork for future collaboration and potential commercial pathways in allied defense and industrial markets.
Warrant Extension Update
Subject to prior approval from the TSX Venture Exchange (TSXV), Desert Mountain Energy has also announced its intention to extend the expiry date of a total of 3,926,000 outstanding share purchase warrants. These warrants were originally issued in early 2025 in connection with four tranches of a private placement financing.
The private placement closings were previously disclosed through news releases dated February 28, March 17, May 2, and May 16, 2025. Each tranche included warrants priced at $0.35 per share, with an original one-year expiry period from the respective dates of issuance. In total, 3,926,000 warrants were issued under these financings.
The Company now plans to consolidate these warrants under a single, common expiry date of January 30, 2027. Importantly, the warrants will not be repriced. The original exercise price of $0.35 per share will remain unchanged, ensuring that the economic terms for warrant holders are preserved while providing additional time for potential exercise.
Management believes that the proposed warrant extension supports investor flexibility and aligns with the Company’s longer-term development timeline, while maintaining consistency with existing financing terms. Final implementation of the extension remains subject to regulatory approval from the TSXV.
