Mr. Michael Hudson reports

SOUTHERN CROSS GOLD ANNOUNCES FIRST CUT FIRED AT SUNDAY CREEK EXPLORATION DECLINE PORTAL

PYBAR Mining Services Pty. Ltd., a Thiess company, has fired the first cut in the exploration decline (or tunnel) portal at Southern Cross Gold Consolidated Ltd.'s Sunday Creek gold-antimony project, 60 kilometres north of Melbourne, Victoria.

This is the first new decline to be developed in the state of Victoria in approximately 20 years. The milestone follows the Resources Victoria work plan approval received in November, 2025, and Premier Jacinta Allan's public endorsement of the project as a critical minerals jobs opportunity for Victoria.

High level takeaways:

• First cut fired. The first development blast was fired in the exploration decline portal at Sunday Creek, Victoria. This is the first new decline developed in Victoria in approximately 20 years.
• Industry milestone. This is a landmark moment for the Victorian mining sector and a rare career opportunity for the teams involved. Firing of the first cut marks the start of underground development of the exploration decline at Sunday Creek.
• Exploration decline progress. Box cut earthworks and ground support are complete, the portal is being established and the development jumbo is commencing driving the primary exploration decline.
• Drilling acceleration. Once completed by year-end, the decline will allow the current 11 surface rigs to be expanded to 24 surface and underground rigs, positioning Sunday Creek as one of the largest predevelopment drill-outs globally.
• Future. The decline development supports the ongoing advancement of a project the company believes has the potential to become a significant western world supplier of antimony and gold.

Michael Hudson, president and chief executive officer, states: "The Victorian government approved our exploration decline on Nov. 27, 2025. In the months since, we have established the surface infrastructure, the box cut and we have now fired the first cut underground. This is the first new decline developed in Victoria in around 20 years, and a proud moment for everyone involved.

"The firing of the first cut went as planned and was executed safely. Beyond this being a significant milestone for Sunday Creek, it is a significant milestone for the broader Victorian mining industry. Many people in our sector never get the opportunity to be part of something like this in their career, and I want to thank the PYBAR and SXGC teams on site who made it happen.

"The decline is fundamentally about accelerating drilling. From here, the team will drive the primary decline to establish underground drill platforms approximately 115 metres beneath surface, scaling us from the 11 surface rigs operating today toward 24 rigs working concurrently and positioning Sunday Creek as one of the largest predevelopment drill-outs globally."

PYBAR comment. James Glover, general manager of PYBAR Mining Services, who attended site for the firing, said: "It was a pleasure to spend time on site with the respective team members for the firing of the first cut in the exploration decline. All went well and as planned. The firing of the first cut is a significant milestone for the project, but also more broadly for the mining industry, with this being the first new underground decline developed in Victoria in the last 20 or so years. Many people in the sector never get the opportunity to be involved in something like this in their career. The PYBAR team are very excited and proud to be a part of it."

First cut fired and decline under way

PYBAR fired the first development cut in the exploration decline portal, marking the commencement of underground development at Sunday Creek. Surface preparation works are complete, including the box cut of approximately 15 metres depth, ground support installation including fibrecrete of the exposed faces. With the portal establishment, the development jumbo can commence driving the primary 5.5 metres wide by six m high decline, with bogging, scaling and ground support of the first cut undertaken as part of the standard development cycle. The decline will extend approximately 680 metres in lateral development to reach a vertical depth of approximately 115 metres, including approximately 1,200 metres of development in total to establish the underground drilling platforms. The decline is targeted for completion by year-end. PYBAR was awarded the decline contract in May, 2026, following a competitive tender process assessing technical capability, safety record, delivery schedule and price.

The decline is being built to accelerate exploration drilling. Establishing underground drill platforms unlocks the scale-up from the 11 surface rigs operating today to 24 rigs working concurrently, positioning Sunday Creek as one of the largest predevelopment drill-outs globally. Underground drilling delivers shorter, more accurate holes into mineralization, materially improves productivity per metre and reduces surface impacts.

A milestone for the Victorian mining sector

The firing of the first cut is the first new underground decline developed in Victoria in approximately 20 years. It represents both a significant milestone for the Sunday Creek project and a broader milestone for the Victorian mining industry, which has not seen new underground development of this kind for two decades. The company acknowledges the PYBAR and Southern Cross site teams whose planning and execution delivered the firing safely and on schedule.

Next steps. With the portal established and the first cut fired, the development team will continue to advance the primary decline toward a vertical depth of approximately 115 metres, followed by lateral development to establish the initial underground drilling platforms with first rigs underground expected to be mobilized in October. The decline remains targeted for completion by year-end, after which underground drilling can commence to support the planned scale-up in drilling capacity at Sunday Creek.

Critical metal epizonal gold-antimony deposits

Sunday Creek is an epizonal gold-antimony deposit formed in the late Devonian (like Fosterville, Costerfield and Redcastle), 60 million years later than mesozonal gold systems formed in Victoria (for example Ballarat and Bendigo). Epizonal deposits are a form of orogenic gold deposit classified according to their depth of formation: epizonal (less than six kilometres), mesozonal (six km to 12 km) and hypozonal (greater than 12 km).

Epizonal deposits in Victoria often have associated high levels of the critical metal, antimony and Sunday Creek is no exception. China, Russia and Tajikistan together account for over 90 per cent of global antimony mine production, with China alone supplying roughly half. China's dominance is greater still in processing, controlling an estimated 80 per cent of global antimony refining capacity. Antimony features highly on the critical minerals lists of many countries including Australia, the United States, Canada, Japan and the European Union. Australia ranks seventh for antimony production despite all production coming from a single mine at Costerfield in Victoria, located nearby to all Southern Cross projects. Antimony alloys with lead and tin which results in improved properties for solders, munitions, bearings and batteries. Antimony is a prominent additive for halogen-containing flame retardants. Adequate supplies of antimony are critical to the world's energy transition, and to the high-tech industry, especially the semi-conductor and defence sectors where it is a critical additive to primers in munitions.

Antimony represents approximately 21 per cent to 24 per cent in situ recoverable value of Sunday Creek at an AuEq (gold equivalent) of 2.39 ratio.

About Southern Cross Gold Consolidated Ltd.

Southern Cross Gold Consolidated is defining a leading gold-antimony project at the Sunday Creek gold-antimony project, located 60 km north of Melbourne. Sunday Creek is a significant gold and antimony drill discovery in a Tier 1 location, with high-grade drill results including 85 composite intersections exceeding 100 grams per tonne Au from 119.6 km of drilling. The mineralization follows a Golden Ladder structure over 12 km of strike length, with structures tested from surface to 1,100 m depth.

Sunday Creek's strategic value is enhanced by its dual-metal profile. The company has a critical mineral the Western world needs. This has gained increased significance following China's export restrictions on antimony, a critical metal for defence and semiconductor applications. Southern Cross's inclusion in the U.S. Defense Industrial Base Consortium (DIBC) and Australia's AUKUS-related legislative changes position it as a potential key Western antimony supplier.

Technical fundamentals further strengthen the investment case, with preliminary metallurgical work showing non-refractory mineralization suitable for conventional processing and gold recoveries of 93 per cent to 98 per cent through gravity and flotation.

With a strong cash position, 1,392 hectares of strategic freehold land ownership, and a large 200 km drill program planned through Q1 2027, Southern Cross is well positioned to advance this globally significant gold-antimony discovery in a Tier 1 jurisdiction, delivering milestone by milestone.

We seek Safe Harbor.