Mr. Dale Wallster reports

SOUTHERN EMPIRE SUCCESSFULLY ACQUIRES 100% OWNERSHIP OF THE PEDRO GOLD PROJECT, MEXICO

Southern Empire Resources Corp. has successfully completed the acquisition, from Enduro Metals Corp., of a 100-per-cent interest in the mineral tenements forming the 1,750-hectare (4,324-acre) Pedro gold project, located in Durango state, Mexico.

Pedro gold project highlights:

• Road accessible and located in Durango state, about 80 kilometres west of the city of Torreon;
• Pedro's kilometre-scale surface gold mineralization and alteration in a favourable structural setting are characteristic of a large precious metals epithermal vein system;
• Additional geochemical and mineralogical data also support a Carlin-style mineral system interpretation;
• Gold mineralization in 12 of the 17 holes drilled to date, with 2022 core drilling highlighted by a 15.23-metre interval grading 0.577 gram gold per tonne;
• Historical rock samples of up to 2.3 grams per tonne gold, with 58 samples greater than 0.25 g/t Au and 11 samples greater than 1.0 g/t Au, collected within a large (four-kilometre-by-one-kilometre) gold-in-soil geochemical anomaly of greater than 10 parts per billion gold.

"Now that we have acquired full ownership, the Pedro gold project presents a compelling exploration opportunity for Southern Empire and strengthens our position in one of Mexico's most geologically prospective, yet underexplored regions. Factors such as large-scale, anomalous gold and indicator trace element geochemistry, including gold mineralization in 12 of the 17 holes drilled to date on the property, supportive property- and regional-scale structural geology, and other implications for Carlin-style mineralization, all position us for a meaningful discovery," said Dale Wallster, Southern Empire's chief executive officer.

Closing of the Pedro gold project acquisition was pursuant to an amendment (see Southern Empire's news release of Oct. 1, 2025) to the original option agreement (see Southern Empire's news release of July 27, 2021) and resulted in Southern Empire issuing to Enduro two million common shares, which are subject to a four-month resale restriction, and agreeing to a future milestone payment of $2-million upon commencement of commercial production from the property. Enduro retains a 2-per-cent net smelter return (NSR) royalty interest from future Pedro production with no buydown provision.

Centauro gold project update

Fortuna Mining Corp. has informed Southern Empire that it has resumed its 3,500-metre core drilling program at the Centauro gold project, located 100 kilometres northwest of Pedro. Fortuna acquired the option rights for Centauro, a geological lookalike to the Pedro gold project, from Southern Empire in 2025; see Southern Empire's news release of Feb. 25, 2025. At Centauro, Fortuna geologists are drilling targets deeper than historically attempted, based on their interpretation that the alteration and mineralization exposed at surface and, in historical drilling, are representative of the upper sections of a large epithermal system at depth.

About the Pedro gold project

The Pedro gold project is located 80 kilometres (approximately 50 miles) from Torreon, Mexico, in the northeastern part of the state of Durango and approximately 30 kilometres west of the town of Mapimi. At Pedro, a gold exploration target is outlined at surface by a gold-in-soil geochemical anomaly greater than 10 parts per billion having dimensions of four kilometres by one kilometre. Outcrop exposure comprises prominent hematite-stained, silica-rich ridges of angular chalcedony fragments and silicified sedimentary rocks within a coarse breccia. Historical sampling of these exposed zones has returned gold values (in rock) ranging from background levels to a maximum of 2.3 g/t Au with 58 samples greater than 0.25 g/t Au and 11 samples greater than one g/t Au. Induced polarization ground geophysical surveys have defined zones of elevated chargeability and identified discrete deep target features. Southern Empire completed 856.3 metres of core drilling at Pedro in 2022, returning a best interval of 15.23 metres grading 0.577 g/t Au in hole P22-03, approximately 800 metres from 2014 drilling by a subsidiary of Newmont Mining Corp. Gold mineralization at Pedro is hosted in permeable basal conglomerates deposited during Oligocene extensional deformation that created widespread Basin and Range physiography along the eastern part of Sierra Madre Occidental. The regional structural setting, geology, alteration and geochemistry mapped at Pedro are indicative of a potential low-sulphidation epithermal vein system. These factors, together with a highly anomalous trace element association of arsenic (orpiment and realgar are common), antimony, mercury and thallium, also suggest a possible Carlin-style mineral system.

Quality assurance/quality control (QA/QC) data verification statement

All historical sampling and drilling were conducted under strict QA/QC protocols. Historical samples mentioned in this release were prepared and analyzed at various times by ALS Ltd. at its laboratories in Chihuahua, Mexico, and Vancouver, Canada. See news releases of Bearing Lithium Corp. dated Sept. 16, 2012, and July 2, 2014, posted on SEDAR+ for historical drill results and news releases of Commander Resources Ltd. dated Feb. 19, 2020, March 30, 2021, and July 27, 2021, for QA/QC details. Drill samples collected by Southern Empire were prepared by an ALS lab facility in Chihuahua, Chihuahua state, Mexico, and then shipped by ALS to its North Vancouver, B.C., facility for gold and multielement analysis (see news releases of Commander and Southern Empire dated April 27, 2022, for assay results and QA/QC details).

Qualified person

The scientific and technical information contained in this news release has been prepared, reviewed and approved by David Tupper, PGeo (British Columbia), Southern Empire's vice-president, exploration, and a qualified person within the context of Canadian Securities Administrators' National Instrument 43-101, Standards of Disclosure for Mineral Projects.

Early warning

Mr. Wallster, chief executive officer and director of the company, also announces that he is now a 10-per-cent shareholder of Southern Empire. Mr. Wallster holds 8,046,000 common shares, directly and indirectly, and 520,000 stock options, representing 10.8 per cent of the issued and outstanding shares on a non-diluted basis and, assuming the exercise of the 520,000 stock options, approximately 11.4 per cent of the issued and outstanding shares on a partially diluted basis.

The securities of Southern Empire held by Mr. Wallster are held for investment purposes. Mr. Wallster has a long-term view of the investment and may acquire additional securities of the company either on the open market, through private acquisitions or as compensation or sell the securities on the open market or through private dispositions in the future depending on market conditions, general economic and industry conditions, the company's business and financial condition, reformulation of plans, and/or other relevant factors.

A copy of Mr. Wallster's early warning report will be available on the company's profile on SEDAR+.

About Southern Empire Resources Corp.

Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits and continues to seek a pipeline of high-potential assets in North America.

On Southern Empire's Pedro gold project in northeastern Durango state, Mexico, gold mineralization is present in 12 of the 17 holes drilled to date. Please see Southern Empire's news releases posted on SEDAR+ or the company's website for further details.

In the Cargo Muchacho mountains of Imperial county, California, Southern Empire owns 100 per cent of both the historical gold-producing American Girl mine property and the Oro Cruz property located approximately 22.5 kilometres (14 miles) southeast of the operating Mesquite gold mine of Equinox Gold Corp.

Extensive historical drilling and large-scale open-pit and underground mining of the American Girl, Padre y Madre, Queen and Cross oxide gold deposits by the American Girl Mining joint venture (AGMJV) occurred between 1987 and 1996. During that time, gold was recovered by either heap leaching of lower-grade ores or milling of higher-grade ores until AGMJV operations ceased in late 1996 because of declining gold prices. This cessation of operations left the Oro Cruz property with many gold exploration targets in addition to a historical inferred resource estimate, reported in 2011 by Lincoln Mining Corp., totalling 341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 g/t Au at a cut-off grade of 0.68 g/t Au (4,835,000 tons at 0.07 ounce gold per ton; please refer to the cautionary notice regarding the Oro Cruz property historical resource estimate).

We seek Safe Harbor.