ACQUISITION BY CNRL

Storm Resources Ltd. has entered into a definitive arrangement agreement with Canadian Natural Resources Limited pursuant to which the purchaser has agreed to acquire all of the issued and outstanding common shares of Storm for cash consideration of $6.28 per Storm share.

Storm’s Board unanimously recommends that Shareholders vote FOR the arrangement resolution.

To receive your $6.28 (CAD) in cash per Common Share, Storm shareholders must vote to approve the acquisition by Canadian Natural Resources Limited at the upcoming Storm Resources Ltd. Special Meeting of Securityholders on December on 15, 2021 (the “Meeting”). Storm’s Board of Directors unanimously recommends securityholders vote FOR the transaction.

Key Transaction Highlights:

All Cash Premium to Market Trading Prices. The purchase price of $6.28 represents an all-time high share price for Storm as well as a premium of approximately 10% to Storm’s 10-day volume weighted average trading price on the Toronto Stock Exchange (the “TSX“) as of the close of markets on November 9, 2021.

Attractive Value for Storm Shareholders. The purchase price of $6.28 per share implies an enterprise value for Storm of approximately $960 million including transaction related expenses and decommissioning obligations. The resulting transaction metric is estimated to be 7.5 times annualized funds flow in the first six months of 2021 or 6.1 times excluding loss on risk management contracts (hedging losses).

Why Vote FOR of the Transaction:

  • Immediate cash liquidity at an all-time high share price at time of announcement
  • Attractive value for shareholders at a 51.3% premium over the price 2 months prior to the announcement and an approximately 10% premium to Storm’s 10-day VWAP on the Toronto Stock Exchange prior to announcement
  • Cash payment removes ongoing risks related to commodity volatility, market volatility, royalty changes, unknown regulatory developments, financing and execution challenges.

Only Storm Shareholders of record at the close of business on November 15, 2021, are entitled to vote at the Meeting.

VOTE NOW

If you have a TWELVE (12) digit control number on your Form of Proxy or Voting Instruction Form

Online: http://www.alliancetrust.ca/shareholders

Mail: Alliance Trust Company, 1010, 407 – 2nd Street S.W. Calgary, Alberta  T2P 2Y3

If you have a SIXTEEN (16) digit control number on your Form of Proxy or Voting Instruction Form and you do not have a share certificate.

Online: http://www.proxyvote.com

Phone (Canada): 1-800-474-7493 (English) / 1-800-474-7501 (French)

Phone (United States): 1-800-454-8683

Mail: Return using the envelope included with your proxy
materials

If you have a TWELVE (12) digit control number on your Form of Proxy or Voting Instruction Form

Online: http://www.alliancetrust.ca/shareholders

Mail: Alliance Trust Company, 1010, 407 – 2nd Street S.W. Calgary, Alberta  T2P 2Y3

If you have a SIXTEEN (16) digit control number on your Form of Proxy or Voting Instruction Form and you do not have a share certificate.

Online: http://www.proxyvote.com

Phone (Canada): 1-800-474-7493 (English) / 1-800-474-7501 (French)

Phone (United States): 1-800-454-8683

Mail: Return using the envelope included with your proxy
materials

If you require immediate assistance, please contact Kingsdale Advisors at:

Client care agents are available from:

  • Monday to Friday: 8:30 a.m. to 10:00 p.m. ET
  • Saturday: 10:00 a.m. to 6:00 p.m. ET

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