Mr. Calvin Yau reports

SOUTHERN ENERGY CORP. ANNOUNCES SUCCESSFUL AMENDMENT TO CREDIT FACILITY

Southern Energy Corp. has executed the fifth amendment to the existing senior secured term loan (the credit facility).

The fifth amendment includes the extension of the tranche B availability to Aug. 31, 2025, and a $2-million (U.S.) increase to the tranche B commitment for a total tranche B commitment of $31.5-million (U.S.). Southern will have approximately $11.5-million (U.S.) of capacity remaining on the credit facility upon execution of the fifth amendment, with a current outstanding balance of approximately $17.6-million (U.S.). The amendment also extends the principal amortization period by an additional 12 months while maintaining the existing 12-per-cent per annum coupon, resets the debt service coverage ratio covenant calculation to an annualized basis beginning in Q4 2023, and allows for repayment and reborrowing under the tranche B facility.

In connection with the fifth amendment, the company has agreed to extend the term of 3,906,250 outstanding common share purchase warrants (bonus warrants) previously issued to the lender from April 30, 2024, until Aug. 31, 2025. The extension of the term of the bonus warrants remains subject to the final approval of the TSX Venture Exchange.

Calvin Yau, chief financial officer of Southern, commented, "The amendments to the credit facility from our existing credit provider provides additional flexibility and credit capacity to support our strategy to grow both inorganically and organically, with long-term development operations in the Gwinville field to maximize leveraged returns for shareholders."

About Southern Energy Corp.

Southern Energy is a natural gas exploration and production company. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf states of Mississippi, Louisiana and east Texas. Its management team has a long and successful history working together and has created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields, and the utilization of redevelopment strategies utilizing horizontal drilling and multistaged fracture completion techniques.