Mr. Michael Hudson reports

SOUTHERN CROSS GOLD WELCOMES AUSTRALIA'S A$1.2 BILLION CRITICAL MINERALS STRATEGIC RESERVE

Southern Cross Gold Consolidated Ltd. is strongly supporting the Australian government's creation of a $1.2-billion (Australian) Critical Minerals Strategic Reserve, with antimony identified as one of three priority minerals alongside gallium and rare-earth elements.

The company welcomes this landmark initiative which recognizes the strategic importance of securing domestic antimony supply for Australia and its allies. Sunday Creek, located just 60 kilometres north of Melbourne in Victoria, represents one of the most significant undeveloped gold-antimony deposits in the Western world and stands ready to support Australia's critical minerals security objectives.

Key highlights:

• Federal $1.2-billion (Australian) strategic reserve prioritizes antimony for defence and clean energy supply chains;
• Victoria's $200-billion (Australian) critical minerals endowment and critical minerals road map support development;
• Victoria is Australia's only current antimony producer -- antimony has historically been the state's second most important metal;
• Sunday Creek exploration decline approved by Victorian government -- construction commencing;
• Tier 1 jurisdiction just 60 kilometres from Melbourne with world-class infrastructure;
• 73 drill intersections exceeding 100 grams per tonne gold; 90 exceeding 10 per cent antimony;
• Proven metallurgy: 92-per-cent to 96-per-cent gold recovery with successful antimony-gold separation.

Michael Hudson, president and chief executive officer, commented: "We strongly support the Australian government's strategic vision in establishing this critical minerals reserve. This is exactly the kind of bold policy action needed to secure Western supply chains against Chinese dominance.

"With China and Russia controlling 80 per cent of global mined and processed antimony, the prioritization of antimony in this reserve sends a clear signal that Australia is serious about critical minerals security. Sunday Creek stands ready to be part of the solution.

"This federal initiative powerfully complements the work of Premier Jacinta Allan's Victorian government. Victoria's critical minerals road map and $200-billion (Australian) endowment strategy have created the policy framework for responsible development, while the November approval of our exploration decline demonstrates the state is genuinely open for business.

"Victoria has always been Australia's antimony state. Antimony has historically been Victoria's second most important metal after gold, with a heritage stretching back to the 1860s. During World War I, central Victoria's Costerfield mines were critical suppliers of antimony for British munitions. Today, Victoria remains Australia's only antimony-producing state.

"Sunday Creek is located just 60 km from Melbourne in a Tier 1 jurisdiction with world-class infrastructure. We have an exceptional high-grade deposit, proven metallurgy, approved underground access and strong government support at both state and federal levels. We look forward to engaging with the government on how Sunday Creek can contribute to Australia's strategic reserve objectives and support our AUKUS allies."

Australia's Critical Minerals Strategic Reserve

The $1.2-billion (Australian) Critical Minerals Strategic Reserve was announced on Jan. 12, 2026, by Treasurer Jim Chalmers, Resources Minister Madeleine King and Trade Minister Don Farrell. The reserve will initially focus on antimony, gallium and rare-earth elements -- minerals essential for defence equipment, clean energy technology and advanced manufacturing.

The initiative includes $185-million (Australian) for physical stockpiling and additional funding for offtake agreements and contracts for difference with Australian producers. It aligns with the United States-Australia $13-billion (Australian) critical minerals partnership and directly supports AUKUS supply chain security.

Antimony is critical for defence applications including ammunition, night-vision equipment and flame retardants, as well as emerging applications in batteries and solar panels. China's recent export restrictions have highlighted the urgency of developing Western supply alternatives.

Victoria: Australia's antimony heartland

Victoria is Australia's only current antimony-producing state, and antimony has historically been the state's second most important metal after gold. The state's antimony mining heritage dates to 1860 when gold-antimony ore was discovered, establishing a mining district that became strategically vital during World War I as a supplier of antimony for British munitions (including the Sunday Creek project).

Today, the Costerfield mine (54 kilometres from Sunday Creek) remains among the world's top-five antimony producers. Both Costerfield and Sunday Creek operate in Victoria, the same geological style that hosts Agnico Eagle's high-grade Fosterville gold mine.

Premier Allan's critical minerals road map specifically identifies antimony as a priority, with the government commencing strategic land use assessments to define a priority zone for antimony projects in central Victoria. The Victorian government estimates the state's critical minerals endowment at approximately $200-billion (Australian), capable of supporting up to 7,000 jobs.

Sunday Creek: approved and advancing

In November, 2025, Resources Victoria approved the company's work plan for an exploration decline at Sunday Creek. This milestone approval enables underground access to high-grade mineralization and demonstrates the Allan government's commitment to responsible resource development.

Site establishment is now under way. The company will expand to 22 drill rigs (10 surface plus 12 underground), creating Australia's largest predevelopment drilling program. The Minerals Council of Australia noted the approval "sends a clear message that Victoria is open for business."

Sunday Creek has delivered exceptional results including 73 drill intersections exceeding 100 grams per tonne gold (peak 3,511 g/t) and 90 intersections exceeding 10 per cent antimony (peak 47.5 per cent) from 107,415 m of drilling. Recent metallurgical testwork demonstrates 92-per-cent to 96-per-cent gold recovery with successful selective flotation producing high-grade, low-arsenic antimony-gold concentrate suitable for Western smelters.

About Southern Cross Gold Consolidated Ltd.

Southern Cross Gold Consolidated is advancing the Sunday Creek gold-antimony project in Victoria, Australia. The company is well financed following a $143-million capital raise in May, 2025, and owns 1,392 hectares of freehold land at the project.

JORC (Joint Ore Reserves Committee) competent person statement

Information in this announcement that relates to new exploration results contained in this report is based on information compiled by Kenneth Bush and Michael Hudson. Mr. Bush is a member of Australian Institute of Geoscientists and a registered professional geologist in the field of mining (No. 10315) and Mr. Hudson is a fellow of The Australasian Institute of Mining and Metallurgy. Mr. Bush and Mr. Hudson each have sufficient experience relevant to the style of mineralization and type of deposit under consideration, and to the activities undertaken, to qualify as a competent person as defined in the 2012 edition of the Joint Ore Reserves Committee Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Bush is exploration manager and Mr. Hudson is president, CEO and managing director of Southern Cross Gold Consolidated, and both consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Certain information in this announcement that relates to prior exploration results is extracted from the independent geologist's report dated Dec. 11, 2024, which was issued with the consent of the competent person, Steven Tambanis. The report is included the company's prospectus dated Dec. 11, 2024, and is available at the Australian Securities Exchange under code SX2. The company confirms that it is not aware of any new information or data that materially affects the information related to exploration results included in the original market announcement. The company confirms that the form and context of the competent persons' findings in relation to the report have not been materially modified from the original market announcement.

National Instrument 43-101 technical background and qualified person

Michael Hudson, president, chief executive officer and managing director of Southern Cross, and a fellow of the Australasian Institute of Mining and Metallurgy, and Kenneth Bush, exploration manager of Southern Cross and a RPGeo (10315) of the Australian Institute of Geoscientists, are the qualified persons as defined by the NI 43-101. They have prepared, reviewed, verified and approved the technical contents of this release.

SXGC considers that both gold and antimony that are included in the gold equivalent (AuEq) calculation have reasonable potential to be recovered and sold at Sunday Creek, given current geochemical understanding, historic production statistics and geologically analogous mining operations. Historically, ore from Sunday Creek was treated on site or shipped to the Costerfield mine, located 54 kilometres to the northwest of the project, for processing during World War 1. The Costerfield mine corridor, now owned by Alkane Resources (previously Mandalay Resources), contains two million ounces of equivalent gold (Mandalay Resources Q3 2021 results), and in 2020 was the sixth highest-grade global underground mine and a top-five global producer of antimony.

The gold equivalence formula used by Mandalay Resources was calculated using Costerfield's 2024 production costs, using a gold price of $2,500 (U.S.) per ounce, an antimony price of $19,000 (U.S.) per tonne and 2024 total year metal recoveries of 91 per cent for gold and 92 per cent for antimony, and is as follows:

AuEq equals Au (g/t) plus 2.39 multiplied by Sb (per cent)

Based on the latest Costerfield calculation and given the similar geological styles and historic toll treatment of Sunday Creek mineralization at Costerfield, SXGC considers that a AuEq equals Au (g/t) plus 2.39 multiplied by Sb (per cent) is appropriate to use for the initial exploration targeting of gold-antimony mineralization at Sunday Creek.

We seek Safe Harbor.