Storm Resources Ltd. ("Storm" or the "Company") is Pleased to Announce Its Financial and Operating Results For the Three and Six Months Ended June 30, 2011

CALGARY, ALBERTA--(Marketwire - Aug. 17, 2011) - Storm Resources Ltd. (TSX VENTURE:SRX)

Storm has also filed its unaudited condensed interim financial statements as at June 30, 2011 and for the three and six months then ended along with the Management's Discussion and Analysis ("MD&A") for the same period. This information appears on SEDAR at www.sedar.com and on Storm's website at www.stormresourcesltd.com.

Selected financial and operating information for the three and six months ended June 30, 2011 appears below and should be read in conjunction with the related financial statements and MD&A.

Consolidated Highlights
Thousands of Cdn$, except volumetric and per share amounts		Three Months to June 30, 2011		Six Months to June 30, 2011
FINANCIAL
	Gas sales	1,011		1,412
	NGL sales	177		274
	Oil sales	748		1,231
	Royalty income	-		-
Production revenue		1,936		2,917
Funds from operations (1)		710		769
	Per share - basic ($)	0.03		0.03
	Per share - diluted ($)	0.03		0.03
Net income (loss)		(562	)	(883	)
	Per share - basic ($)	(0.02	)	(0.03	)
	Per share - diluted ($)	(0.02	)	(0.03	)
Capital expenditures, net of dispositions		2,012		11,714
Cash plus accounts receivable less accounts payable		12,224		12,224
Weighted average common shares outstanding (000s)
	Basic	26,377		26,377
	Diluted	26,377		26,377
Common shares outstanding (000s)
	Basic	26,377		26,377
	Fully diluted	28,391		28,391
OPERATIONS
Oil equivalent (6:1)
	Barrels of oil equivalent (000s)	54		79
	Barrels of oil equivalent per day	595		436
	Average selling price (Cdn$ per Boe)	35.74		36.93
	Royalties
Gas production
	Thousand cubic feet (000s)	269		379
	Thousand cubic feet per day	2,958		2,094
	Average selling price (Cdn$ per Mcf)	3.76		3.72
NGL Production
	Barrels (000s)	2		3
	Barrels per day	22		18
	Average selling price (Cdn$ per barrel)	86.53		85.50
Oil Production
	Barrels (000s)	7		13
	Barrels per day	80		69
	Average selling price (Cdn$ per barrel)	103.20		97.85
Wells drilled
	Gross	-		-
	Net	-		-

(1)

Funds from operations and funds from operations per share are non-GAAP measurements. See discussion of Non-GAAP Measurements on page 5 of the MD&A and the reconciliation of funds from operations to the most directly comparable measurement under GAAP, "Cash Flows from Operating Activities", on page 11 of the MD&A.

PRESIDENT'S MESSAGE

SECOND QUARTER 2011 HIGHLIGHTS

• Production averaged 595 Boe per day for the quarter which represents 115% growth from first quarter production of 276 Boe per day. As Storm Resources Ltd. ("Storm" or the "Company") commenced operations August 17, 2010, there is no prior year comparison.

• Production performance of the first horizontal development wells in the Montney at Umbach and in the Muskwa/Otter Park shales of the Horn River Basin continue to meet expectations with declines moderating on both horizontals throughout the quarter.

• The first of four follow-up horizontals to be drilled at Umbach in the second half of 2011 was cased in early July and completion with 10 fracture stimulations is under way. Drilling of the second horizontal commenced in early August.

• Operating netback was $25.98 per Boe and non-GAAP funds from operations was $0.7 million in the second quarter.

• Capital investment was $2.0 million with major expenditures being $0.7 million for land acquisition and $0.8 million for drilling.

• At June 30, 2011, Storm's net funds available for investment (working capital surplus excluding prepaids) were $12.2 million and the value of Storm's investments in publicly listed companies totaled $9.6 million (proceeds from the possible future sale of these securities may be used to finance the Company's capital programs).

OPERATIONS REVIEW

Horn River Basin ("HRB"), North East British Columbia

Storm's undeveloped land position in the HRB totals 120 gross sections at a 40% working interest (31,200 net acres) and is prospective for natural gas from the Muskwa, Otter Park and Evie/Klua shales. This land position was acquired jointly with Storm Gas Resource Corp. ("SGR") which owns the remaining 60% working interest. Storm owns 2.5 million shares of SGR representing 22% equity ownership, giving Storm exposure to 53% of the upside in the HRB when combined with the 40% working interest in the undeveloped lands. In July 2011, SGR announced a decision by its board of directors (the "Board") to enter into a review of strategic alternatives in order to maximize shareholder value. The process of reviewing strategic alternatives will be overseen by a special committee comprised of the independent directors of the Board. SGR has not set a definitive schedule to complete this review.

During the second quarter, production from this area averaged 350 Boe per day net to Storm at an operating netback of $14.81 per Boe. The first horizontal well (0.4 net) was completed with 12 fracture treatments, commenced production March 7, 2011 at a rate of 6.5 Mmcf per day gross raw gas and averaged 5.8 Mmcf per day gross raw gas in the second quarter. Current production is approximately 5.0 Mmcf per day gross raw gas, or 290 Boe per day sales net to Storm, after accounting for 12% shrinkage. The rate is restricted by 2 3/8" tubing and high gathering system pressures (tubing pressure 800 psig, casing pressure 1,280 psig) which has resulted in production declining at a relatively moderate annualized rate of 35% since early May. A second horizontal well (40% working interest) drilled in late 2010 may be completed in the fourth quarter of 2011 depending on natural gas prices and potential reserve additions from additional undrilled horizontal locations that would be recognized with a successful completion. At current natural gas prices, Storm expects that no royalties will be paid on production from the first two horizontals in the next two years due to their qualification under British Columbia's Deep Royalty Credit and Infrastructure Royalty Credit Programs.

Storm's initial efforts in the HRB have been focused on the Muskwa and Otter Park shales within a central project area consisting of 21 gross sections (8.4 net to Storm). Within this area, Storm management estimates that gross Discovered Petroleum Initially in Place ("DPIIP")⁽¹⁾ is 2.0 to 2.2 TCF in the Muskwa and Otter Park shales based on average net pay of 95 metres, porosity of 3.7% to 5.0%, gas saturation of 77% and an adsorbed gas content of 61 Scf/ton. The parameters used in estimating DPIIP came from analysis of 3-D seismic data and from vertical wells within the central project area including two wells drilled, completed and tested by SGR/Storm plus log data from four additional wells.

(1)

Discovered Petroleum Initially in Place ("DPIIP") - is defined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") as the quantity of hydrocarbons that are estimated to be in place within a known accumulation. Original Gas in Place ("OGIP") is a more commonly used industry term when referring to gas accumulations. DPIIP is divided into recoverable and unrecoverable portions, with the estimated future recoverable portion classified as reserves and contingent resources. There is no certainty that it will be economically viable or technically feasible to produce any portion of this DPIIP except for those portions identified as proved or probable reserves.

Umbach, North East British Columbia

At Umbach Storm has 55,400 net undeveloped acres which are primarily prospective in the Montney formation (101 gross sections, 72 net sections). Production averaged 168 Boe per day in the second quarter and was reduced by a scheduled maintenance turnaround at the McMahon Gas Plant which caused production to be shut in for the final two weeks of the second quarter and the first two weeks of the third quarter.

Storm's first horizontal well (0.6 net) was completed with seven 100-ton fracture treatments, came on production March 6, 2011 at 5.0 Mmcf per day gross raw gas, and second quarter production averaged 1.6 Mmcf per day gross raw gas (shut in for last 2 weeks of the quarter). The second quarter operating netback was $19.90 per Boe. Current production is approximately 1.6 Mmcf per day gross raw gas or 170 Boe per day net sales to Storm after including shrinkage of approximately 11% and natural gas liquids recovery of approximately 30 barrels per Mmcf of sales. This horizontal qualified for a royalty initiative capping the royalty rate at 2% for the first 12 months of production; however, subsequent horizontals will not benefit from this initiative as it expired at the end of 2010.

In the second half of 2011, Storm plans to drill four follow-up horizontal wells (2.4 net) and another one to two vertical delineation wells (0.6 to 1.6 net). The first of these horizontals was cased in early July and is currently being completed with 10 fracture stimulations. Drilling operations commenced on the next horizontal in early August. To try to improve productivity, horizontal length is being increased and 10 to 12 fracture treatments are planned on all future horizontals. The cost to drill, complete and tie in horizontals with 10 fracture treatments is forecast to be $4.5 million using a mechanical packer system instead of the perf and plug system used on the first horizontal. Initially, infrastructure costs are not expected to be significant given that Storm can access existing facilities and pipelines which are connected to Spectra's McMahon Gas Plant.

Storm is also pursuing a second lead in the Montney formation on additional lands acquired to the south of the first horizontal well. In the first quarter, two vertical wells (100% working interest) on these lands were completed in the Montney formation with 100-ton fracture treatments. Final test rates on each well were approximately 150 to 200 Mcf per day. These verticals are 5 miles apart and confirm that the Montney is productive over a large area, however, the test rates are indicative of lower reservoir quality. Areas likely to have better reservoir quality have been identified from recently acquired 3-D seismic and a vertical delineation well is being planned for the fourth quarter of 2011.

Storm management estimates that DPIIP in the Montney formation is approximately 15 to 30 Bcf of raw gas per section which is based on log analysis from a limited number of vertical wells on Storm's lands plus core data from two vertical wells in the area. Estimated DPIIP is based on net pay of 15 to 30 metres (using a 3% sandstone scale cut-off), average porosity of 7%, average gas saturation of 83% and reservoir pressure of 15,300 kPa. Given that there is only limited production history from the Montney formation in the immediate area, well performance and recovery factors cannot be estimated at this time.

Red Earth, North Central Alberta

Production at Red Earth averaged 80 barrels of oil per day in the second quarter from two Slave Point horizontal wells (0.4 net) which commenced production in early February. The operating netback was $87.00 per barrel in the quarter with both horizontals benefiting from a 5% royalty rate under Alberta's New Well Royalty Rate program.

INVESTMENTS

Storm has share ownership positions in one private company and two publicly traded companies. These shareholdings were transferred to Storm under the Plan of Arrangement with ARC Energy Trust. The value of the share positions in the two public companies totaled $9.6 million at the end of the second quarter and these securities could possibly be sold in the future with the proceeds being used to finance the Company's capital programs.

Storm Gas Resource Corp. SGR is a private company formed in June 2007 to pursue unconventional gas opportunities in the HRB and elsewhere. Storm's share ownership position totals 2.5 million shares, representing 22% ownership of SGR. Currently, SGR's land position totals 81,400 net acres with 61,000 net acres in the HRB. SGR's working capital available for investment was $8.5 million at the end of the first quarter 2011. In July 2011, SGR commenced a review of strategic alternatives.

Chinook Energy Inc. ("Chinook") Storm holds 4.5 million shares of Chinook which is a TSX-listed oil and gas exploration and production company (symbol 'CKE') based in Calgary with operations focused in Tunisia and Western Canada. Storm Exploration Inc. had previously owned 4.5 million shares of Storm Ventures International Inc. ("SVI"), a private company, which were converted into shares of Chinook when SVI and Iteration Energy Ltd. completed a business combination June 29, 2010.

Bridge Energy ASA ("Bridge") Storm holds 1.05 million common shares of Bridge (symbol 'Bridge' on the Oslo Stock Exchange), a Norwegian-based exploration and production company with production of approximately 1,500 Boe per day, several development opportunities in the UK sector of the North Sea, and a number of exploratory leads in the Norwegian sector of the North Sea. Bridge is the result of a business combination completed in March 2010 whereby SVI's United Kingdom North Sea assets were combined with a private Norwegian based company which resulted in SVI receiving 28,776,000 common shares of Bridge that were distributed to SVI shareholders.

OUTLOOK

Storm's 2011 guidance remains unchanged. A total of $24.0 million will be invested with the majority being allocated towards drilling four horizontals (2.4 net) and one to two vertical wells (0.6 to 1.6 net) at Umbach. Production in the fourth quarter of 2011 is expected to average approximately 1,000 to 1,200 Boe per day (15% oil and NGLs). Operating costs are forecast to average $7.25 per Boe with cash general and administrative costs totaling $2.7 million. The corporate average royalty rate is estimated to be 10% which includes the effect of royalty incentive programs in Alberta and British Columbia. The current cash balance and cash flow is expected to be sufficient to fund planned 2011 capital expenditures.

Current production is approximately 525 Boe per day and third quarter production is expected to average 500 to 550 Boe per day. Rain, resulting in very wet ground conditions, delayed drilling and completion operations at Umbach which will result in new well tie-ins occurring late in the third quarter.

Production performance of the first horizontal development wells in Storm's resource plays at Umbach and the HRB has been very encouraging. The presentation on Storm's website (www.stormresourcesltd.com) includes updated production graphs for both horizontal wells. In the second half of 2011, we are planning to follow up on our success in both areas and will also try to improve productivity and associated reserves by increasing the number of fracture stimulations on future horizontals. In the HRB, a second horizontal drilled late in 2010 may be completed with 14 fracture treatments in the fourth quarter depending on natural gas prices and potential reserve additions (the first horizontal was completed with 12 fracture stimulations). At Umbach, we benefit from the recovery of approximately 30 barrels of natural gas liquids per Mmcf sales and four horizontals are planned for the second half of 2011. Productivity and the associated rate of return should be improved by pumping 10 to 12 fracture treatments on these horizontals as compared to seven fracture treatments on the first horizontal.

Longer term, we remain optimistic that natural gas prices will eventually improve. Cost inflation and poor rates of return at current natural gas prices are expected to gradually reduce natural gas supply as capital is redirected towards liquids rich opportunities where production rates tend to be lower and initial declines steeper. In the near term, we will focus on resource delineation as this is expected to provide a greater return on invested capital than growing production and/or cash flow.

Storm has now been in business in its current form for 12 months. We have made steady progress advancing both of our core resource plays, each with multi-year development potential which provides a solid base for future growth. Generating accretive, per-share growth remains a commitment for us and we appreciate the support and patience of our shareholders.

Respectfully,

Brian Lavergne, President and Chief Executive Officer

August 17, 2011

Boe Presentation – For the purpose of calculating unit revenues and costs, natural gas is converted to a barrel of oil equivalent ("Boe") using six thousand cubic feet ("Mcf") of natural gas equal to one barrel of oil unless otherwise stated. Boe may be misleading, particularly if used in isolation. A Boe conversion ratio of six Mcf to one barrel ("Bbl") is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All Boe measurements and conversions in this report are derived by converting natural gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil. Mboe means 1,000 Boe.

Forward-Looking Information - This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "will", "expects", "believe", "plans", "potential" and similar expressions are intended to identify forward-looking statements or information. More particularly, and without limitation, this press release contains forward-looking statements and information concerning: production; drilling plans; reserve volumes; capital expenditures; royalties; and production and general and administrative costs.

The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Storm, including: prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; success to be expected in drilling new wells; the adequacy of budgeted capital expenditures to carrying out planned activities; the availability and cost of services; and the receipt, in a timely manner, of regulatory and other required approvals. Although the Company believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on these forward-looking statements and information because of their inherent uncertainty. In particular, there is no assurance that exploitation of the Company's undeveloped lands and prospects will result in the emergence of profitable operations.

Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the oil and gas industry in general such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of the Company are included or are incorporated by reference in the company's MD&A for the three and six months ended June 30, 2011.

The forward-looking statements and information contained in this press release are made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.