Mr. Greg McKenzie reports

SILVER STORM CLOSES THIRD TRANCHE OF ITS NON-BROKERED PRIVATE PLACEMENT OFFERING INCLUDING PARTICIPATION BY ERIC SPROTT, AND ENGAGEMENT OF WHITTLE CONSULTING

On Jan. 16, 2025, Silver Storm Mining Ltd. closed the third tranche of its non-brokered private placement offering of units of the company previously announced on Dec. 5, 2024. Under the third tranche of the offering, 8,716,667 units were issued at a price of nine cents per unit for aggregate gross proceeds of $784,500.03. The third tranche included a $500,000 investment from current significant shareholder Eric Sprott. To date under the offering, the company has raised total gross proceeds of $1,290,420.

Each unit consists of one common share of the company and one common share purchase warrant. Each warrant shall be exercisable to acquire one additional common share at an exercise price of 16 cents until 36 months after closing.

In connection with the third tranche of the offering, the company paid certain finders that introduced subscribers to the offering (including Canaccord Genuity Corp. and Haywood Securities Inc.) the following fees: (1) a cash commission totalling $6,930, being up to 7 per cent of the gross proceeds raised under the offering from investors introduced to the company from such finders; and (2) 77,000 non-transferable common share purchase warrants of the company, being up to 7.0 per cent of the units sold under the offering from investors introduced to the company from such finders. Each finder warrant entitles the holder to purchase one common share at a price of 16 cents for a period of 36 months.

The units were offered by way of private placement pursuant to exemptions from prospectus requirements under applicable securities laws. The securities issued and issuable pursuant to the offering are subject to a four-month-and-one-day hold period from the date of closing. The warrants and finder warrants will not be listed for trading. The company intends to use the net proceeds from the offering to complete its coming National Instrument 43-101 resource statement and for general corporate and working capital purposes.

The offering has received conditional approval from the TSX Venture Exchange.

The participation of Mr. Sprott, an insider of the company, in the third tranche constitutes a related party transaction under the policies of the TSX-V and within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. Notwithstanding the foregoing, the directors of the company have determined that Mr. Sprott's participation in the offering will be 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 shares purchased on behalf of Mr. Sprott nor the consideration paid by him exceeds 25 per cent of the company's market capitalization. The company did not file a material change report more than 21 days before the expected closing of the offering as the participation by Mr. Sprott was not settled until shortly prior to closing and the company wished to close on an expedited basis for sound business reasons.

The company is also extending the offering period for up to an additional 30 days, ending Feb. 19, 2025, subject to approval from the TSX-V. See previous news releases dated Dec. 5, 2024, Dec. 19, 2024, Jan. 6, 2025, and Jan. 9, 2025, for further details of the offering.

Engagement of Whittle Consulting Ltd.

The company is also pleased to announce the engagement of Whittle Consulting Ltd. (WCL) to conduct a strategic optionality planning study (SOPS) on the company's 100-per-cent-owned La Parrilla silver complex, located in Durango, Mexico. The SOPS involves a rigorous analytical and computational process using WCL strategic mine planning software and integrated strategic planning concepts.

The SOPS analysis by WCL will commence following receipt of the coming mineral resource update for the project, being performed by SRK Canada Inc., and will be completed over the course of a couple months focusing on optimizing the underground mining sequence and schedule, potential use of existing oxide stockpiles, and plant structure, throughput and staging.

WCL has demonstrated, in over 180 enterprise optimization studies, that the comprehensive application of the Whittle integrated strategic planning approach has yielded improvements in the economics estimated by previous studies in many mining projects, even when several conventional optimization approaches have already been applied.

WCL has the most advanced strategic mine planning software in the form of Prober E. The product of 35 years of optimization software development by founder Jeff Whittle, it combines linear programming with a sophisticated proprietary search algorithm, a genetic algorithm, and the ability to harness multiple processors on more than 200 in-house servers and dedicated servers in Helsinki. This allows WCL to explore complexity and optimize even the largest and most complex multivariable, non-linear problems that mining involves.

WCL is a group of highly experienced industry experts who have strong technical backgrounds in a range of disciplines, including geology, mining engineering, metallurgy, research, mathematics and computing, finance, and operational/financial modelling and analysis, and a thorough appreciation of practical, organizational and contextual reality.

WCL has agreed to receive its consulting fee in common shares of the company. The fee shares will be payable following completion of the study and will be issued at the seven-day volume-weighted average price as of the date of the invoice. The issuance of the fee shares is subject to the policies and approval of the TSX-V.

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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