Mr. Greg McKenzie reports

SILVER STORM ADVANCES OFFTAKE FINANCING FOR RESTART OF LA PARRILLA SILVER MINE COMPLEX

Silver Storm Mining Ltd. has made excellent progress toward securing debt and offtake-linked project financing proposals for the restart of operations at the past-producing La Parrilla silver mine complex in Durango, Mexico.

Silver Storm has received several non-binding proposals from leading trading houses for multiyear lead and zinc concentrate offtake agreements as well as traditional debt providers. Each proposal includes an associated prepayment or structured finance facility to provide near-term financing for restart activities at La Parrilla.

The proposals received to date include:

• Financing facilities ranging from $15-million (U.S.) to $17-million (U.S.);
• Duration of 36 to 48 months;
• Annual interest rates based on SOFR (secured overnight financing rate) three-month rate plus acceptable customary premium.

All proposals are subject to customary conditions precedent, including satisfactory due diligence, compliance and documentation, commercial offtake contracts for 100 per cent of production during the facility tenor, acceptable pledge guarantees, and credit committee approval. There can be no assurance that definitive agreements for the financing facilities will be entered into and completed on terms which are acceptable or at all.

About Silver Storm Mining Ltd.

Silver Storm Mining holds advanced-stage silver projects, located in Durango, Mexico. Silver Storm recently completed the acquisition of 100 per cent of the La Parrilla silver mine complex, a prolific operation that comprises a 2,000-tonne-per-day mill as well as five underground mines and an open pit that collectively produced 34.3 million silver equivalent ounces between 2005 and 2019. The company also holds a 100-per-cent interest in the San Diego project, which is among the largest undeveloped silver assets in Mexico.

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