Storm Exploration — Capital/Financing Update 2022

Jan 8, 2022

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A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

BMO Barrier Principal At Risk Notes, Series 126 (CAD) (F-Class), Due February 2, 2027 Linked to Solactive Equal Weight Canada Banks 5% AR Index

INVESTMENT HIGHLIGHTS

5-Year Term

The Notes are designed to provide investors with the opportunity for an enhanced return while also offering contingent protection against a slight to moderate decline in the Reference Index. The Principal Amount is NOT protected under these Notes.

• Issuer: Bank of Montreal.

• Medium Term: 5-year term to maturity.

Linked to Solactive Equal Weight Canada Banks 5% AR Index

• Reference Index: The Solactive Equal Weight Canada Banks 5% AR Index aims to track the gross total return performance of the Solactive Equal Weight Canada Banks Index (the “ Underlying Index ”), calculated in CAD, less an adjusted return factor of 5.00% per annum that will be calculated daily in arrears (the “ Adjusted Return Factor ”). The Underlying Index is a gross total return index that reflects the price changes of its constituent securities and the reinvestment in the index of any dividends and distributions paid in respect of such securities. For the calculation of the level of the Underlying Index, any dividends or other distributions paid on the constituent securities of the Underlying Index are assumed to be reinvested across all the constituent securities of the Underlying Index.*

• Upside Participation: 460.00% participation (or 4.60 times the Index Return) where the Index Return is zero or positive.

460% Upside Participation

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10% Contingent Protection at Maturity

• Contingent Protection: If the Index Return is negative, the Principal Amount will be fully protected so long as the Final Level is equal to or above the Barrier Level (i.e., 90% of the Initial Level) . If the Final Level is below the Barrier Level, a Holder will sustain a loss on the Notes equal to the Index Return (which will be a negative amount equal the decline in the Reference Index), subject to the minimum principal repayment of $1.00 per Note.

• Daily Secondary Market: Provided by BMO Capital Markets (may be subject to limitations as described in the Prospectus). The Notes will not be listed on any exchange or marketplace.

• The dividend yield of the Underlying Index on December 31, 2021 was 3.58%, representing an aggregate dividend yield of approximately 17.91% over

• the term of the Notes (assuming the dividend yield remains constant and dividends are not reinvested). An investment in the Notes does not represent a direct or indirect investment in the Underlying Index or any of the constituent securities that comprise the Underlying Index. Holders have no right or entitlement to the dividends or distributions paid on such securities.

No Upside Cap

Fundserv JHN7477

For more information, please contact your Investment Advisor

	Available Until:	January28,2022
	Issue Date:	February2,2022
	Maturity Date:	February2,2027
	Minimum Investment:	$2,000.00
	Selling Concession:	Nil

Client Brochure

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1

January 7, 2022

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ADDITIONAL OFFERING DETAILS

Issuer	Bank of Montreal (the “Bank”).	Bank of Montreal (the “Bank”).	Bank of Montreal (the “Bank”).	Bank of Montreal (the “Bank”).	Bank of Montreal (the “Bank”).
Issuer Rating	Moody’s: Aa2;S&P: A+;DBRS: AA(long‐term deposits > 1year).
Issue Price	$100.00 per Note (the “Principal Amount”).
Final Valuation Date:	January 26, 2027.
Index Return	The percentage change betwe Final Level-Initi Initial Level			en the Initial Level and the Closing Level on the Final Valuation Date, and calculated using the following formula: al Level
			Initial Level
Maturity Payment	The amount payable on the Notes at Maturity (the “Maturity Payment”) will be determined as follows: (i) If the Index Return is _zero or positive_on the Final Valuation Date, the Maturity Payment will equal: Principal Amount + (Principal Amount × Index Return × Upside Participation); (iii) If the Index Return is negative and the Final Level is equal to or above the Barrier Level, the Maturity Payment will equal the Principal Amount; and (iii) If the Final Level is below the Barrier Level, the Maturity Payment will equal the Principal Amount reduced by an amount equal to the Index Return determined as follows:Principal Amount + (Principal Amount × Index Return), subject to the Minimum Payment Amount. SeeAppendix A(Return Profile) andAppendix C(Sample Calculations of Maturity Payment) to the Pricing Supplement for further discussion of the return payout calculations for the Notes under different hypothetical price return scenarios.		payable on the N	otes at Maturity (the “Maturity Payment”) will be determined as follows:
			he Index Return is	_zero or positive_on the Final Valuation Date, the Maturity Payment will equal:
			Principal Amount + (Principal Amount × Index Return × Upside Participation);
			he Index Return is negative and the Final Level is equal to or above the Barrier Level, the Maturity Payment will equal the Principal Amount; and
			the Final Level is below th		e Barrier Level, the Maturity Payment will equal the Principal Amount reduced by an amount equal to the Index Return determined
		s
		f	ollows:Principal Amount		+ (Principal Amount × Index Return), subject to the Minimum Payment Amount.
		Appendix A(Return Profile) and			Appendix C(Sample Calculations of Maturity Payment) to the Pricing Supplement for further discussion of the return payout
		ulations for the Notes under differ			ent hypothetical price return scenarios.
Upside Participation	460	.00% participation (or 4.60 times t			he Index Return) where the Index Return is positive.
Initial Level	Closing Level on the Issue Date.
Barrier Level	90% of the Initial Level, resulting in ful				l principal protection against a decline in the Index Return of up to 10% from the Initial Level of the Reference Index.
Downside Participation	100.00%participation where the Inde				x Return is below the Barrier Level.
Maximum Payment Amount	There is no cap or maximum payment				amount on the Notes.
Minimum Payment Amount	$1.00 per Note.
Secondary Market/Early Trading Charge	The Notes will not be listed on any exchange or marketplace. BMO Capital Markets will use reasonable efforts under normal market conditions to provide for a daily secondary market for the sale of the Notes through the order entry system operated by Fundserv, but reserves the right to elect not to do so in the future, in its sole and absolute discretion, without prior notice to Holders. No Early Trading Charge will apply if the Notes are sold prior to Maturity. See “Secondary Market” in the Product Supplement and “Description of the Notes — Fundserv” in the Base Shelf Prospectus.
Calculation Agent	BMO Capital Markets. See “Calculation Agent” in the Prospectus.
Dealers	BMO Nesbitt Burns Inc. and iA Private Wealth Inc.
Selling Concession	There will be no sellingconcessionpaid for the Notes.

Client Brochure January 7, 2022

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BMO Barrier Principal At Risk Notes, Series 126 (CAD) (F-Class) Linked to Solactive Equal Weight Canada Banks 5% AR Index

HOW DO THE NOTES WORK?

The following examples show how the Index Return and Maturity Payment would be calculated based on certain hypothetical values and assumptions set out below. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the performance of the Reference Index or the return that a Holder might realize on the Notes.

Upside Participation: 460.00% where the Index Return is positive Barrier Level: 90% of Initial Level

Example 1 - Negative Index Return (Final Level below Barrier Level)

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Assumptions for Example Term = 5 years Initial Level = 200.00 Final Level = 140.00 Upside Participation = 460.00% Barrier Level = 180 (90% of Initial Level)

Return Calculation

• (1) Index Return = Final Level – Initial Level/Initial Level = (140.00 – 200.00)/200.00 = -30.00 %

• (2) Maturity Payment = Principal Amount + (Principal Amount × Index Return) = $100.00 + ($100.00 × -30.00%) = $70.00

Since the Index Return is negative and the Final Level is below the Barrier Level, the Maturity Payment will be calculated as follows:

Maturity Payment = Principal Amount + (Principal Amount × Index Return) Maturity Payment = $100.00 + ($100.00 × (-30.00%)) = $70.00 per Note

A Holder would receive a Maturity Payment of $70.00 for each $100.00 Note (which is equivalent to a compounded annual loss of 6.88% on the Notes).

Example 2 - Negative Index Return (Final Level above Barrier Level)

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Assumptions for Example Term = 5 years Initial Level = 200.00 Final Level = 190.00 Upside Participation = 460.00% Barrier Level = 180 (90% of Initial Level)

Return Calculation

• (1) Index Return = Final Level – Initial Level/Initial Level = (190.00 – 200.00)/200.00 = -5.00 %

Since the Index Return is negative, but the Final Level is above the Barrier Level, the Maturity Payment will equal the Principal Amount of the Notes, which is $100.00 per Note. A Holder will not have suffered any loss on his or her principal investment in the Notes and would receive a Maturity Payment of $100.00.

Client Brochure

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January 7, 2022

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Example 3 - Positive Index Return

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Assumptions for Example Term = 5 years Initial Level = 200.00 Final Level = 280.00 Upside Participation = 460.00% Barrier Level = 180 (90% of Initial Level)

Return Calculation

• (1) Index Return = Final Level – Initial Level/Initial Level = (280.00 – 200.00)/200.00 = 40.00 %

• (2) Maturity Payment = Principal Amount + (Principal Amount × Index Return × Upside Participation) = $100.00 + ($100.00 × 40.00% × 460.00%) = $284.00

Since the Index Return is positive, the Maturity Payment will be calculated as follows:

Maturity Payment = Principal Amount + (Principal Amount × Index Return × Upside Participation) Maturity Payment = $100.00 + ($100.00 × 40.00% × 460.00%) = $284.00 per Note

Holder would receive a Maturity Payment of $284.00 for each $100.00 Note (which is equivalent to a compounded annual return of 23.20% on the Notes).

Client Brochure January 7, 2022

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BMO Barrier Principal At Risk Notes, Series 126 (CAD) (F-Class) Linked to Solactive Equal Weight Canada Banks 5% AR Index

DISCLAIMER

This document should be read in conjunction with the Bank’s short form base shelf prospectus dated August 25, 2021 (the “Base Shelf Prospectus”), Prospectus Supplement No. 1 dated August 25, 2021 (the “Product Supplement”) and Pricing Supplement No. 26 dated January 7, 2022 (the “Pricing Supplement”).

A Holder’s return on the Notes will depend on the performance of the Reference Index over the term of the Notes. Bank of Montreal does not guarantee that a Holder will receive an amount equal to or greater than his or her principal investment in the Notes and does not guarantee that any return will be paid on the Notes at Maturity other than the Minimum Payment Amount of $1.00 per Note. The Notes provide contingent protection only, meaning that a Holder could lose some or substantially all of his or her principal investment in the Notes if the Index Return is below the Barrier Level on the Final Valuation Date. See “Certain Risk Factors” in the Base Shelf Prospectus, “Additional Risk Factors Specific to Enhanced Return Notes” in the Product Supplement and “Terms of the Offering — Risk Factors” in the Pricing Supplement.

Prospective investors should carefully consider all of the information set forth in the Pricing Supplement, the Product Supplement and the Base Shelf Prospectus (collectively, the “Prospectus”) and, in particular, should evaluate the specific risk factors set forth under “Suitability for Investment” and “Risk Factors” in the Pricing Supplement.

BMO Nesbitt Burns Inc., one of the Dealers, is a wholly-owned subsidiary of the Bank. As a result, the Bank is a “related issuer” of BMO Nesbitt Burns Inc. for the purposes of National Instrument 33-105 - Underwriting Conflicts. See “Plan of Distribution” in the Base Shelf Prospectus.

The Notes have not been and will not be rated by any credit rating organization. A rating is not a recommendation to buy, sell or hold investments, and may be subject to revision or withdrawal at any time by the relevant rating agency.

The Notes will not be deposits that are insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking financial institution. See “Description of the Notes — Rank; No Deposit Insurance” in the Product Supplement.

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The above summary is for information purposes only and does not constitute an offer to sell or a solicitation to purchase Notes. The offering and sale of Notes may be prohibited or restricted by laws in certain jurisdictions. Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. Unless the context otherwise requires, terms not defined herein will have the meaning ascribed thereto in the Pricing Supplement. A copy of the Pricing Supplement, the Product Supplement and the Base Shelf Prospectus can be obtained at www.sedar.com.

“BMO (M-bar roundel symbol)”, “BMO” and “BMO Capital Markets” are registered trademarks of the Bank used under license. The Solactive Equal Weight Canada Banks 5% AR Index is owned, calculated, administered and published by Solactive AG ( “Solactive” ) assuming the role as administrator (the “Index Sponsor” ) under the Regulation (EU) 2016/1011. The name “Solactive” is a registered trademark of Solactive. Solactive is registered with and regulated by the German Federal Financial Supervisory Authority (“ BaFin ”). The Reference Index is a product of Solactive, its affiliates and/or its third-party licensors and has been licensed for use by Bank of Montreal and its affiliates. The Notes are not sponsored, endorsed, sold or promoted by Solactive, or any of its respective affiliates. Neither Solactive, nor its respective affiliates, make any representation regarding the advisability of investing in such product(s).

Client Brochure

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January 7, 2022