Mr. Dale Wallster reports

SOUTHERN EMPIRE ANNOUNCES REINSTATEMENT OF TRADING

The trading in Southern Empire Resources Corp.'s common shares will be reinstated on the TSX Venture Exchange.

Further to the company's news release dated Oct. 9, 2026, trading of the company's common shares was previously suspended following the issuance of a failure-to-file cease trade order (FFCTO) by the British Columbia Securities Commission as a result of the company's failure to file its interim financial statements and related management discussion and analysis (MD&A) for the nine-month period ended July 31, 2026.

The company filed the required interim financial statements and MD&A on Oct. 7, 2026, and the British Columbia Securities Commission revoked the FFCTO on Oct. 8, 2026. Following the revocation of the FFCTO, the TSX Venture Exchange accepted the reinstatement of trading of the company's common shares.

As part of the TSX Venture Exchange's reinstatement review, it was determined that the company granted 2.7 million stock options on Dec. 22, 2025, at a time when the company's stock option plan had not been reapproved by shareholders in accordance with TSX Venture Exchange requirements. Accordingly, the December stock options were not granted pursuant to a validly approved stock option plan and are subject to disinterested shareholder approval at the company's next annual general meeting. Acceptance of the December stock options by the TSX-V will be conditional upon the company obtaining and providing evidence of such shareholder approval.

In addition, 500,000 of the December stock options were exercised by Mr. Wallster on April 17, 2026. As the December stock options have not received the requisite shareholder approval, the exercise of those options has been cancelled and the 500,000 common shares have been returned to treasury. The company intends to seek the requisite shareholder approval at its next annual general meeting, which is expected to be held in March, 2027, following the filing of its annual financial statements for the year ended Oct. 31, 2026. None of the December stock options may be exercised until the company obtains disinterested shareholder approval and acceptance of the TSX-V.

About Southern Empire Resources Corp.

Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits in North America.

In northeastern Durango State, Mexico, Southern Empire has an option to acquire a 100-per-cent beneficial interest in the 1,750-hectare Pedro gold project. At Pedro, in the spring of 2022, Southern Empire drilled gold mineralization approximately 800 metres from 2014 drilling by a subsidiary of Newmont Mining Corp. Gold mineralization, associated with highly anomalous arsenic (orpiment and realgar common), antimony, mercury and thallium, has been identified hosted in permeable basal conglomerates deposited during Oligocene extensional deformation, the latter forming widespread Basin and Range physiography along the eastern part of the Sierra Madre Occidental. Gold is present in 12 of the 17 drill holes drilled at Pedro to date. Please see Southern Empire's news releases posted on SEDAR+ for further details.

In the Cargo Muchacho mountains of Imperial county, California, Southern Empire owns 100 per cent of the historical gold-producing American Girl mine property and the adjacent 2,160-hectare (5,338-acre) Oro Cruz property, located approximately 22.5 kilometres (14 miles) southeast of the operating Mesquite gold mine of Equinox Gold Corp.

At Oro Cruz, 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, leaving 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 grams gold per tonne at a cut-off grade of 0.68 gram per tonne gold (4,835,000 tonnes at 0.07 ounce of gold per ton).

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