Mr. Ian Atkinson reports

SOUTHERN ENERGY CORP. ANNOUNCES PAYMENT OF INTEREST IN-KIND TO ITS 8% CONVERTIBLE UNSECURED SUBORDINATED DEBENTURES

Southern Energy Corp. has agreed to issue, in aggregate, 779,273 new common shares of Southern to holders of its 8 per cent convertible unsecured subordinated debentures issued on June 14, 2019, and Jan. 15, 2021, as payment in kind of accrued interest on the debentures due on Dec. 31, 2023, in the aggregate amount of $171,440. The number of new common shares to be issued is equal to the amount of the interest, divided by the volume-weighted average trading price per common share for the 20 consecutive trading days ending on the fifth trading day preceding Dec. 31, 2023, being 22 cents per common share. Southern gave notice to Computershare Trust Company of Canada, as debenture trustee, effective Dec. 31, 2023, that it exercised its right to make the interest payment by issuing common shares.

Director/PDMR participation

It is noted that certain directors and PDMRs (persons discharging managerial responsibilities) of the company hold convertible debentures, on the same terms as all other participants, and, accordingly, were issued, in aggregate, 9,455 common shares.

Admission and total voting rights

The new common shares issued in respect of the interest payment will be credited as fully paid, rank pari passu in all respects with the existing common shares, and are expected to be admitted to trading on Alternative Investment Market on or around 8 a.m. (GMT) on or around Jan. 3, 2024.

Following admission, the total number of common shares in the company in issue will be 166,497,433, and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the company.

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.

We seek Safe Harbor.