Goldstorm Metals Announces LIFE Offering for up to $4,000,000

• Financing Announcement (April 9, 2026): Goldstorm Metals announced a non-brokered private placement under the LIFE exemption to raise up to $4,000,000. Units are priced at $0.20 (HD), $0.24 (FT), and $0.31 (Charity FT). Each unit includes common shares and half-share purchase warrants exercisable at $0.30 for 36 months.
• Use of Proceeds: Funds will support Canadian exploration expenses (flow-through) to be incurred by December 31, 2027, and general corporate working capital. Closing expected week of April 30, 2026.
• Operational Context (April 8, 2026): Immediately preceding the financing, the company announced drill targets for the Crown Property based on independent geophysical reviews and appointed Joel Ashburner as Chief Geologist. A Phase 1 drill program of ~3,000m is planned.
• Financial Position (Dec 31, 2025): Interim financials show cash and cash equivalents of $695,211. Working capital was positive ($491k), but the deficit stands at -$3.89M. Operating expenses for the nine months ended Dec 31, 2025 were approximately $1.2M.
• Capital Structure: Issued shares stand at ~107.4 million as of Dec 31, 2025. Outstanding warrants include ~6.4M at $0.10 strike (expiring June 2027) and options totaling ~11M.

• Dilution Risk: The proposed $4M raise represents approximately 15-18% dilution to the existing share base (~16 million new shares at average price). This is a significant capital event for a company of this market cap size ($25.8M).
• Cash Burn Indicators: The need for a $4M raise only 10 months after closing a ~$2.1M private placement (June 2025) suggests accelerated cash burn or an expansion of the exploration budget beyond initial projections. With only $695k in cash at year-end, this financing is critical to avoid liquidity constraints during the planned drilling season.
• Warrant Overhang: The new warrants are priced at $0.30 exercise price, which is currently out-of-the-money (current price $0.24). This limits immediate dilution from warrant exercises but adds future supply pressure if the share price recovers above $0.30.
• Strategic Alignment: The financing directly supports the Phase 1 drilling program announced April 8, validating management's commitment to advancing the Crown Property targets (Copernicus Zone). However, it reinforces a pattern of frequent capital raises which can erode shareholder value if exploration results do not materialize into a resource.
• Market Reaction: The offering price ($0.20-$0.31) is slightly above the recent trading range ($0.20-$0.24), suggesting management believes in current valuation, but the dilution remains a negative factor for existing holders.

• Company: Goldstorm Metals Corp. is an exploration-stage company focused on gold, silver, and copper in British Columbia's Golden Triangle.
• Flagship Project: The Crown Property (100% owned), covering ~16,468 hectares adjacent to Seabridge Gold’s KSM project and Newmont’s Brucejack mine.
• Key Targets: Copernicus Zone (porphyry copper-gold potential), Orion Spine (gold-copper-silver trend), and Electrum Property (high-grade gold-silver veins).
• Geological Model: Management posits a "Thrust Fault Model" extending southward from nearby KSM and Brucejack deposits, suggesting potential for world-class porphyry systems.