SILVER STORM CLOSES $14.625 MILLION FIRST TRANCHE OF NON-BROKERED PRIVATE PLACEMENT LED BY ERIC SPROTT AND ANNOUNCES FURTHER UPSIZE UP TO $21.0 MILLION Toronto, Ontario, August 2 6, 2026: Silver Storm Mining Ltd. (“ Silver Storm” or the “ Company”)
NEWS RELEASE
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR
DISSEMINATION IN THE UNITED STATES
SILVER STORM CLOSES $14.625 MILLION FIRST TRANCHE OF
NON-BROKERED PRIVATE PLACEMENT LED BY ERIC SPROTT
AND ANNOUNCES FURTHER UPSIZE UP TO $21.0 MILLION
Toronto, Ontario, August 2 6, 2026: Silver Storm Mining Ltd. (“ Silver Storm” or the “ Company”)
(TSX.V: SVRS | FSE: SVR) is pleased to announce that it has closed the first tranche (the “ First
Tranche”) of its non-brokered private placement (the “Offering”) previously announced on August 21,
2026 and upsized on August 24, 2026, issuing 29,250,000 units of the Company (each, a “Unit”) at a
price of $0.50 per Unit for aggregate gross proceeds of $ 14,625,000. In addition, due to continued
strong investor demand, the Company is further increasing the size of the Offering from 30,000,000
Units to up to 42,000,000 Units, for increased aggregate gross proceeds of up to $21,000,000.
Each Unit consists of one common share of the Company (a “ Common Share”) and one-half of one
common share purchase warrant. Each whole warrant (a “Warrant”) entitles 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
applicable tranche.
In connection with the Offering, the Company paid Red Cloud Securities Inc. (“Red Cloud”) a cash
fee totaling $213,750, equal to 3.0% of the gross proceeds raised under the Offering from the investors
introduced by Red Cloud to the Company. For the balance of the Offering , the Company may pay
eligible finders who introduce subscribers to the Offering a cash finders’ fee equal to up to 3.0% of the
gross proceeds raised from investors introduced by such finders, in compliance with the policies of the
TSX Venture Exchange (the “TSXV”) and applicable securities laws.
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.
The Offering will now close in one or more additional tranches. The Company expects to close the
balance of the Offering on or about August 28, 2026, or such other date(s) as the Company may
determine, subject to certain conditions, including completion of documentation and receipt of all
necessary regulatory and other approvals, including the approval of the TSXV.
The Offering is available to accredited investors in all the provinces and territories of Canada pursuant
to the prospectus registration exemptions available under National Instrument 45 -106 – Prospectus
Exemptions. The Offering may be conducted in the United States pursuant to exemptions from the
registration requirements under Rule 144A and/or Regulation D of the United States Securities Act of
1933, as amended (the “ 1933 Act”), subject to receipt of all necessary regulatory approvals, and in
other jurisdictions outside of Canada and the United States , provided it is understood that no
prospectus filing or comparable obligation arises in such other jurisdiction. The securities issued and
issuable pursuant to the Offering are subject to a four month and one day hold period from the date of
issuance of the applicable tranche.
The First Tranche has received conditional approval from the TSXV. The balance of the Offering
remains subject to certain conditions, including receipt of all necessary approvals, including the
approval of the TSXV.
NEWS RELEASE
Related Party Transaction
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him and an insider of
the Company, subscribed for 15,000,000 Units in the First Tranche for an aggregate purchase price
of $7,500,000. Following the completion of the First Tranche, 2176423 Ontario Ltd. beneficially owns
or controls 110,768,929 Common Shares and 20,755,556 Warrants , representing approximately
12.9% of the Company’s outstanding Common Shares on a non -diluted basis, and approximately
15.0% on a partially diluted basis assuming the exercise of all Warrants held by 2176423 Ontario Ltd.
Mr. Sprott’s participation is unchanged by, and was not increased in connection with, the further upsize
of the Offering announced herein.
The participation of Mr. Sprott in the Offering constitutes a “related party transaction” under the policies
of the TSXV and within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security
Holders in Special Transactions (“MI 61-101”). The directors of the Company have determined that
Mr. Sprott’s participation in the Offering is exempt from the formal valuation and minority shareholder
approval requirements of MI 61 -101 in reliance on the exemptions set forth in sections 5.5(a) and
5.7(1)(a), respectively, of MI 61 -101, as neither the fair market value of the Units purchased by Mr.
Sprott (approximately $7,500,000) nor the consideration paid by him exceeds 25% of the Company’s
market capitalization of approximately $414 million (base d on 827,899,519 Common Shares
outstanding prior to the Offering and a closing price of $0.50 per Common Share on August 21, 2026).
The Company did not file a material change report more than 21 days before the expected closing of
the First Tranche, as Mr. Sprott’s participation was not settled until shortly prior to the closing and the
Company wished to close on an expedited basis for sound business reasons.
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. The securities offered have not been, nor will they be, registered
under the 1933 Act, 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 require ments,
including the exemptions referenced above.
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.
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’ National 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 balance
of the Offering as planned, on the terms presented, and in the anticipated tranches; the number and
timing of remaining tranches and the anticipated closing date of the balance of the Offering; the
intended use of proceeds of the Offering; the closing conditions of the Offering; TSXV approval of the
increased size of the Offering; statements with respect to the continuation of Mr. Sprott’s participation
in the Offering as a related party and the Company’s continued 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 balance of the Offering will close on the anticipated
terms, in the anticipated tranches, 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, including TSXV approval of the
increased size of the Offering; that Mr. Sprott’s participation will continue on the terms previously
disclosed; that the Company’s exemptions from the formal valuation and 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 transitio n La Parrilla into production, and any related production decisions,
are based largely on internal Company data, historical operating results, reports, and engineering
assessments, and are not supported by a current mineral reserve estimate prepared in acc ordance
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 results, 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 un due reliance on forward -looking
statements or information.