Storm Resources Buys Remaining Storm Gas Resource Stake

Acquired approximately 81,400 net acres in BC, including 58,400 net acres in Horn River Basin, gaining 360 BOE/d, 421 Bcf best case contingent resources.

Storm Resources Ltd., Calgary, (Toronto Venture: SRX) has closed the acquisition of Storm Gas Resource Corp. for C$43.87 million in stock.

Storm Resources issued 11.76 million shares at a deemed price of C$3.73 each per Storm Gas Resource share previously not held by Storm.

Storm Gas Resource’s assets include approximately 81,400 net acres in British Columbia, including 58,400 net acres in the Horn River Basin. Held-by-production lands included in the contingent resource evaluation totaled 30 gross sections representing 19,500 gross acres or 12,500 acres net to Storm Gas Resource.

Production is 360 barrels of oil equivalent per day. Contingent resources as of Oct. 31, 2011 were 305 billion cubic feet net sales in the low case estimate, 421 billion cubic feet net net sales in the best case estimate and 552 billion cubic feet net sales in the high case estimate. Proved reserves as of year-end 2010 were 644,000 barrels and proved and probable reserves were 2.4 million barrels equivalent.

Storm Resources’ undeveloped land holdings in the Horn River Basin now total 88,600 net acres at a 100% working interest.

Peters & Co. Ltd. and RBC Dominion Securities Inc. were financial advisors to Storm Gas Resources.