Mr. Ian Atkinson reports

SOUTHERN ENERGY CORP. ANNOUNCES RESTRICTED SHARE AWARD GRANT

Pursuant to Southern Energy Corp.'s share award incentive plan, an aggregate of 19.8 million restricted share awards (RSAs) were granted as part of Southern's overall compensation and employee retention program.

The RSAs vest as to one-third on each of the first, second and third anniversaries of the grant date. On the vesting dates of such RSAs, the holder is entitled to receive a cash payment or its equivalent in fully paid common shares of the company, at the company's discretion, equal to the closing market value per common share on the TSX Venture Exchange on the business day prior to such payment.

In aggregate, 8.1 million of the RSAs were issued to directors and persons discharging managerial responsibilities (PDMR) of the company, as set out in the attached table.

About Southern Energy Corp.

Southern Energy is a natural gas exploration and production company characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to premium commodity pricing in North America. 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. The company's management team has a long and successful history working together and have 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.