Silver Storm Announces $7.5 Million Non-Brokered Private Placement with Eric Sprott
NEWS RELEASE
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR
DISSEMINATION IN THE UNITED STATES
SILVER STORM ANNOUNCES $7.5 MILLION
NON-BROKERED PRIVATE PLACEMENT WITH ERIC SPROTT
Toronto, Ontario, August 21, 2026: Silver Storm Mining Ltd. (“ Silver Storm” or the " Company")
(TSX.V: SVRS | FSE: SVR), announces a non-brokered private placement of 15,000,000 units of the
Company (the "Units") at a price of $0.50 per Unit for gross proceeds of $7,500,000 (the "Offering").
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him and a current
significant shareholder of the Company, is subscribing for the entire Offering.
Each Unit will consist of one common share of the Company (a " Common Share") and one-half of
one common share purchase warrant. Each whole warrant (a " Warrant") will entitle the holder to
acquire one additional Common Share at a price of $0.70 for a period of 18 months from the closing
of the Offering.
No commissions or finders' fees are payable by the Company in connection with the Offering.
The Company intends to use the net proceeds of the Offering to fund surface and underground drilling
programs at its La Parrilla Silver Mine Complex ("La Parrilla"), and for general corporate and working
capital purposes.
Greg McKenzie, President & CEO, stated : "We are pleased to have Eric Sprott, one of the most
respected resource investors in the world, fund this private placement. He has supported Silver Storm
over the past several years, and his continued confidence underscores the progress we have made
bringing La Parrilla back into production."
The Offering is being made to Mr. Sprott, through 2176423 Ontario Ltd., an accredited investor, in
reliance on the accredited investor exemption available under National Instrument 45 -106 –
Prospectus Exemptions. The securities issued pursuant to the Offering will be subject to a four month
and one day hold period from the date of issuance.
The Offering is expected to close on or about August 25, 2026, or such other date(s) as the Company
may determine (the " Closing Date "). Completion of the Offering is subject to certain conditions,
including receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the
"TSXV").
Related Party Transaction
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, currently holds
95,768,929 common shares of the Company, representing approximately 11.6% of the Company's
issued and outstanding common shares. Mr. Sprott, through 2176423 Ontario Ltd., is committing to
subscribe for 15,000,000 Units in the Offering for an aggregate purchase price of $7,500,000 (the
"Insider Participation" ). The Insider Participation will be considered a “related party transaction”
within the meaning of Multilateral Instrument 61 -101 – Protection of Minority Security Holders in
Special Transactions (“MI 61 -101”). The Company expects to rely on exemptions from the formal
valuation and minority shareholder approval requirements provided under MI 61 -101 pursuant to
section 5.5(a) and section 5.7(1)(a), respectively, on the basis that neither the fair market value of the
Units issued to Mr. Sprott, nor the fair market value of the consideration paid by him, exceeds 25% of
the Company's market capitalization. The Company did not file a material change report in respect of
the Insider Participation at least 21 days before expected closing date of the Offering , as the Insider
Participation was not confirmed prior to the foregoing period.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in
the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. T he securities being offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as amended, or under any U.S. state
securities laws, and may not be offered or sold in the United States absent registration or an applicable
exemption from such registration requirements.
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced-stage silver projects in Durango State, Mexico. The Company
is transitioning its 100%-owned La Parrilla Silver Mine Complex, a prolific operation comprised of a
2,000 tpd mill and three underground mines, into production. Silver Storm also holds a 100% interest
in the San Diego Project which ranks among the largest undeveloped silver projects in Mexico. For
more information about Silver Storm and its projects, please visit our website at www.silverstorm.ca.
For additional information, please contact:
Greg McKenzie, President & CEO
Ph: +1 (416) 504-2024
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements:
Certain statements in this news release are forward -looking and involve a number of risks and
uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking
information’ in the Canadian Securities Administrators’ Natio nal Instrument 51 -102 – Continuous
Disclosure Obligations. Forward -looking statements are not comprised of historical facts. Forward -
looking statements include estimates and statements that describe the Company’s future plans ,
objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “coul d”, “would”, “will”, or “plan”. Since forward -looking
statements are based on assumptions and address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors involved with forward -looking
information could cause actual events, results, performance, pros pects and opportunities to differ
materially from those expressed or implied by such forward -looking information. Forward-looking
information in this news release includes, but is not limited to, the Company completing the Offering
as planned and on the terms presented, the intended use of proceeds of the Offering, the closing
conditions of the Offering, TSXV approval of the Offering, the anticipated Closing Date, statements
with respect to Mr. Sprott's participation, including the terms and quantum thereof and the Company's
reliance on exemptions under MI 61 -101, and the Company's plans to transition La Parrilla into
production.
In making the forward -looking statements included in this news release, the Company has applied
several material assumptions, including that the Offering will close on the anticipated terms or at all;
that the Units and Warrants will have the anticipated terms; that the Company will use the net proceeds
of the Offering as anticipated; that the Company will receive all necessary regulatory approvals in
respect of the Offering; that Mr. Sprott's participation will be completed on the terms described; that
the Company's exemptions from the formal valuation a nd minority approval requirements of MI 61 -
101 remain available; that the Company's financial condition and development plans do not change
because of unforeseen events; and management's ability to execute its business strategy without
unexpected or adverse regulatory changes affecting La Parrilla. The Company cautions that its plans
to transition La Parrilla into production, and any related production decisions, are based largely on
internal Company data, historical operating results, reports, and engineer ing assessments, and are
not supported by a current mineral reserve estimate prepared in accordance with NI 43 -101, or by a
preliminary economic assessment, pre -feasibility study, or feasibility study demonstrating economic
and technical viability. As a result, there is increased uncertainty and a higher degree of economic and
technical risk associated with the Company's production plans than would be the case if such reserve
estimates or studies were completed and relied upon. No mineral reserves have been established for
La Parrilla, and mineral resources that are not reserves do not have demonstrated economic viability.
There can be no assurance that production at La Parrilla will proceed as anticipated, or at all, or that
anticipated production levels or operating costs will be achieved. Forward -looking statements and
information are subject to various known and unknown risks and uncertainties, many of which are
beyond the Company's ability to control or predict, that may cause the Company's actual result s,
performance or achievements to differ materially from those expressed or implied by such forward -
looking information.
Such forward -looking information represents management ’s best judgment based on information
currently available. No forward -looking statement can be guaranteed, and actual future results may
vary materially. Accordingly, readers are advised not to place undue reliance on forward -looking
statements or information.