STORM RESOURCES LTD. (TSX VENTURE:SRX) has entered into a purchase and sale agreement in relation to the disposition of 150 Boe per day in the Mica area of northeast British Columbia. Details of the disposition are provided below.

• Disposition price is $13.5 million for Storm's 100% working interest in the property.

• Closing date is October 18, 2012 with an effective date of September 1, 2012.

• In the first half of 2012, production averaged 148 Boe per day (64% light oil plus natural gas liquids) and the field netback was $42.70 per Boe.

• The asset contains an estimated 630 Mboe total proved and 722 MBoe of proved plus probable reserves (68% light oil plus natural gas liquids) based on an independent reserve report dated December 31, 2011 prepared by InSite Petroleum Consultants Ltd. in accordance with National Instrument 51-101. There was no future development capital assigned to the property.

In mid-August, Storm sold 1.5 million shares of Chinook Energy Inc. for net proceeds totaling $2.2 million. This results in Storm's public company investments currently totaling 3.0 million shares of Chinook Energy Inc. plus 1.05 million shares of Bridge Energy ASA with an estimated value of $6.9 million based on closing share prices on September 6, 2012.

With the disposition of Mica, Storm's bank credit facility will be reduced from $70 million to $62 million. The disposition of Mica ($13.5 million), sale of Chinook Energy Inc. shares ($2.2 million) and the previously disclosed disposition of the Red Earth property on July 24, 2012 ($2.4 million) will result in an $18.1 million reduction to net debt which was $53.7 million at the end of the second quarter. Net debt includes the working capital deficiency but does not including the value of Storm's public company investments.

Including the value of Storm's public company investments, net debt exiting 2012 is forecast to be approximately $37 million. This is based on guidance previously provided in the release of second quarter results on August 13, 2012 and after accounting for the disposition of the Mica property effective September 1, 2012.