Silver Storm Provides Bi-Weekly MCTO Status Update

Rhea-AI Summary

Silver Storm Mining (TSX.V: SVRS | OTCQB: SVRSF | FSE: SVR) has provided a bi-weekly update on its management cease trade order (MCTO) issued on July 30, 2024, by the British Columbia Securities Commission. The company is unable to file its annual and interim financial statements due to complexities associated with the acquisition of La Parrilla assets. The BCSC has given Silver Storm until September 27, 2024 to complete its Annual Filings, with Interim Filings expected within five business days thereafter.

The MCTO does not affect public trading of the company's securities. Silver Storm confirms no material changes to the information in the Default Announcement and continues to satisfy the Alternative Information Guidelines set out in NP 12-203. The company has no anticipated specified default beyond the current filing delay and confirms there are no insolvency proceedings against it.

Positive

• None.

Negative

• Delay in filing Annual and Interim Financial Statements
• Management Cease Trade Order (MCTO) issued by BCSC
• Complexities in accounting and audit process due to La Parrilla assets acquisition

TORONTO--(BUSINESS WIRE)-- Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V: SVRS | OTCQB: SVRSF | FSE: SVR) is providing this bi-weekly update on the status of its management cease trade order issued on July 30, 2024 (the “MCTO”), by its principal regulator, the British Columbia Securities Commission (the “BCSC”), under National Policy 12-203 Management Cease Trade Orders (“NP 12-203”). The Company announced on July 30, 2024 (the “Default Announcement”), that it expected to be unable to file its annual financial statements, management’s discussion and analysis and related officer certifications for the financial year ended March 31, 2024 (collectively, the “Annual Filings”) by the filing deadline of July 29, 2024 (the “Filing Deadline”).

As a result of the delay in filing the Annual Filings, the Company was unable to file its unaudited interim financial statements, related management's discussion and analysis and CEO and CFO certifications for the three months ended June 30, 2024 (the “Interim Filings”, and together with the Annual Filings, the “Required Documents”). Under National Instrument 51-102, the Required Interim Filings were required to be made no later than August 29, 2024.

As previously disclosed, due to certain complexities associated with the acquisition of the La Parrilla assets, the accounting and audit process remains ongoing at this time. The BCSC has given the Company until September 27, 2024 to complete its Annual Filings. The Company expects the Interim Filings to be filed within five business days of the Annual Filings once completed. The MCTO will remain in effect until two full business days following the receipt by the BCSC of all filings the Company is required to make under British Columbia securities law, including the Required Documents. The MCTO does not affect the ability of other shareholders, including the public, to trade in securities of the Company.

The Company confirms that, other than as described above, there are no material changes to the information contained in the Default Announcement. In addition, (i) the Company is satisfying and confirms that it intends to continue to satisfy the provisions of the Alternative Information Guidelines set out in NP 12-203, including the issuance of bi-weekly default status reports in the form of news releases, for as long as the Company remains in default with its Required Documents; (ii) the Company does not have any information at this time regarding any anticipated specified default subsequent to the default in filing the Required Documents; (iii) the Company confirms as of the date of this news release, that there is no insolvency proceeding against it; and (iv) there is no other material information concerning the affairs of the Company that has not been generally disclosed.

About Silver Storm Mining Ltd.

Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Silver Storm recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation which is comprised of a 2,000 tpd 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% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico. For more information regarding the Company and its projects, please visit our website at www.silverstorm.ca.

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.

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”, “could”, “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, prospects 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 MCTO and expectations relating thereto.

In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including that the Company´s financial condition and development plans do not change because of unforeseen events. Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein, including, but not limited to, the risk that the Company is unable to achieve its goal of placing La Parrilla back into production; market conditions and volatility and global economic conditions including increased volatility and potentially negative capital raising conditions resulting from the continued or escalation of the COVID-19 pandemic, risk of delay and/or cessation in planned work or changes in the Company’s financial condition and development plans employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour, the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits and the presence of laws and regulations that may impose restrictions on mining, including the Mexican mining reforms; risks relating to environmental regulation and liability; the possibility that results will not be consistent with the Company’s expectations; risks relating to completion of the annual audit in a timely manner.

Such forward-looking information represents 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 undue reliance on forward-looking statements or information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240924788854/en/

For additional information, please contact:

Greg McKenzie, President & CEO

Ph: +1 (416) 504-2024

info@silverstorm.ca

Source: Silver Storm Mining Ltd.

FAQ

What is the current status of Silver Storm Mining's (SVRSF) financial filings?

Silver Storm Mining (SVRSF) is currently unable to file its annual and interim financial statements due to complexities associated with the La Parrilla assets acquisition. The company has been given until September 27, 2024, to complete its Annual Filings, with Interim Filings expected shortly after.

How does the Management Cease Trade Order (MCTO) affect Silver Storm Mining (SVRSF)?

The MCTO affects Silver Storm Mining's (SVRSF) management's ability to trade securities but does not impact the ability of other shareholders, including the public, to trade in the company's securities.

When is Silver Storm Mining (SVRSF) expected to file its required financial documents?

Silver Storm Mining (SVRSF) is expected to file its Annual Filings by September 27, 2024, as per the BCSC's extension. The Interim Filings are anticipated to be filed within five business days of the Annual Filings' completion.

What caused the delay in Silver Storm Mining's (SVRSF) financial filings?

The delay in Silver Storm Mining's (SVRSF) financial filings is due to certain complexities associated with the acquisition of the La Parrilla assets, which has prolonged the accounting and audit process.