Eric Sprott Invests $2 Million in Storm Exploration

Storm Exploration Inc. announced a non-brokered private placement of 5,000,000 units at CAD 0.40 per unit, raising gross proceeds of CAD 2,000,000. The entire offering is being subscribed by 2176423 Ontario Ltd., a corporation beneficially owned by Eric Sprott.

Each unit consists of one common share plus one-half of one common share purchase warrant. Each whole warrant carries an exercise price of CAD 0.55 and has a two-year term from closing. The company stated that the proceeds will be used for exploration drilling at the Gold Standard project and for general corporate and working capital purposes. No commissions or finders’ fees are payable in connection with the transaction.

Securities issued in the offering will be subject to a four-month-and-one-day hold period. Closing is subject to TSX Venture Exchange approval.

The release noted that upon closing, Sprott’s corporation will hold more than 10% of Storm’s issued and outstanding common shares, becoming the company’s largest shareholder and a reporting insider. On a partially diluted basis, Sprott’s ownership is expected to remain below 20% due to a 19.99% control-person blocker in the warrants. This transaction is described as a related-party transaction under National Instrument 61-101, and Storm intends to rely on exemptions from formal valuation and minority shareholder approval.

Storm Exploration Inc. (STRM) announced a CAD 2,000,000 placement that marks the first time Eric Sprott has invested in the company, according to available historical records. No prior Sprott position, placement, or participation appears in the record. Based on a pre-offering share count of approximately 28.1 million shares and an August 25, 2026 close of CAD 0.47, Storm’s pre-offering market capitalization was roughly CAD 13.2M. Sprott is becoming the largest shareholder, a development not disclosed in prior releases.

The unit price of CAD 0.40 is below the CAD 0.47 market close but above the July 2026 non-flow-through unit price of CAD 0.35, indicating an improving financing price for Storm. The warrant exercise price of CAD 0.55 is above the current market price, meaning immediate warrant exercise is not economically likely.

This financing serves to strengthen the company’s treasury and shareholder register but does not confirm mineralization, economics, or resource size. The Gold Standard VMS target remains untested by modern drilling. Historically, Storm stated in February 2026 that drilling at Gold Standard was planned for Q2 2026. The drill permit was not announced until August 19, 2026, with drilling now expected to commence in Q3 2026. A July 2026 placement closed oversubscribed at CAD 2.95M. This new Sprott placement appears timed to fund the imminent Gold Standard drill program.

Storm Exploration Inc. (TSXV: STRM) is a junior explorer focused on northwest Ontario. The company’s portfolio, based on disclosures, includes the 100%-owned Gold Standard property covering 7,869 hectares as of the August 19, 2026 release, which is described as a flagship near-term asset. Additional holdings include the 100%-owned Keezhik property, comprising 12,480 hectares, and the 100%-owned Attwood property, covering 23,230 hectares.

At Gold Standard, the primary target is a roughly 5-kilometre conductivity anomaly interpreted as a potential volcanogenic massive sulphide system. Historical drilling by Inco between 1969 and 1970 reportedly intersected copper and zinc sulphide mineralization, though the company notes those historical holes did not test the modern conductor and were not assayed. Surface sampling has generated high precious-metal values, including 166 g/t Au, 197 g/t Ag, and 1.47% Cu. Storm received a three-year drill permit for Gold Standard on August 19, 2026, and is preparing an up to 3,000m drill program.

The project is early-stage. No modern resource estimate, mineral reserve, or economic study is provided. Management includes Bruce Counts, P.Geo., who serves as President, CEO, and Director. Additional directors and consultants are disclosed in the investor presentation.