Mr. Ian Atkinson reports

SOUTHERN ENERGY OBTAINS APPROVAL FOR AMENDMENT TO OUTSTANDING CONVERTIBLE DEBENTURES

Southern Energy Corp. has received an extraordinary resolution from the holders of its outstanding convertible unsecured subordinated debentures approving certain amendments to the debenture indenture entered into between the company and Computershare Trust Company of Canada dated June 14, 2019, as amended by a first supplemental indenture dated June 30, 2021, and a second supplemental indenture dated June 26, 2024, to provide that, subject to and following the completion of the previously announced equity fundraising, which consists of a placing of new units of the company to new and existing institutional investors on the AIM (Alternative Investment Market) and a concurrent public offering of new units in Canada, an amount equal to 102.5 per cent of the principal amount outstanding under the debentures plus all accrued and unpaid interest as of the closing date would convert into units at the revised prospectus price and such units would be subject to customary lock-up provisions. Pursuant to receipt of the extraordinary resolution from the debentureholders, Southern will enter into a third supplemental indenture with the trustee to effect the debenture amendment. As at the date hereof, the company has 4,286 debentures outstanding at face value of $1,000 each. The completion of the debenture amendment remains subject to acceptance of the TSX Venture Exchange.

The company also announces a revision to the expected timetable for the fundraising, as further detailed below. The remainder of the terms of the fundraising will continue without amendment. Defined terms used in this announcement have the same meaning given to them as defined in the company's announcement released on March 25, 2025, unless otherwise defined herein.

We seek Safe Harbor.