Southern Empire optionee defines targets at Centauro

Mr. Dale Wallster reports FORTUNA UPDATES SOUTHERN EMPIRE ON EXPLORATION OF THE CENTAURO GOLD PROJECT, MEXICO Monumental Minerals SA de CV, a subsidiary of Fortuna Mining Corp., has completed initial exploration work resulting in the definition of drill targets and the permitting of 56 drill pads at Southern Empire Resources Corp.'s Centauro gold project, located in Chihuahua state, Mexico. Centauro, which is situated within the southern extension of the North American Basin and Range province, exhibits geological characteristics comparable with the high-level alteration signatures of the fully preserved, precious metal epithermal systems identified at Cerro Blanco in Guatemala and Cerro Negro in Argentina. Monumental considers that these many encouraging features suggest a very robust top of an epithermal system. At Centauro, evidence of a paleosurface top to a fully preserved, potentially precious-metal-bearing hydrothermal system at depth, comes from Monumental's recently completed geological mapping, sampling and relogging of 6,994 metres (approximately 22,946 feet) of historical Centauro drill core, which has confirmed near-surface gold and silver anomalies, the occurrence of low-temperature sulphide indicator minerals (realgar, orpiment, cinnabar and stibnite), and a large (1.5-by-1.5-kilometre) intense silica cap. A 3,500-metre (approximately 11,483-foot) core drill program is scheduled to start in early October, 2025, and will target potentially precious-metal-bearing, northwest-southeast-trending structural features, at 300- to 400-metre depths below the observed paleosurface, interpreted to be feeder zones for the alteration and intense silicification observed at the paleosurface top. "We are very encouraged by the excellent work being done by Monumental's team and are excited to see the results of this new phase of deeper drilling at Centauro," explained Dave Tupper, Southern Empire's vice-president of exploration, "and we are reminded of the numerous, very closely analogous features that Southern Empire's Pedro project, located 100 kilometres to the south near Mapimi in Durango, shares with Centauro. Although only isolated remanent zones of silica are present at Pedro, the near-surface, high-level anomalies of gold and silver, the presence of low-temperature realgar, orpiment and stibnite mineralization, and multiple strong northwest-trending structures support the positive comparison between the two properties." Background and pertinent business terms of the Centauro option assignment agreements On Feb. 25, 2025, Southern Empire announced that it had entered into agreements allowing Monumental, Fortuna's Mexican subsidiary, to replace Southern Empire as the optionee of record in an option agreement with the original property vendor (see Southern Empire's news release of Dec. 12, 2022), thereby permitting Fortuna, through Monumental, the ability to earn a 100-per-cent interest in three Centauro mineral claims totalling 600 hectares (approximately 1,483 acres). Pursuant to the assignment agreements, Fortuna, through Monumental, committed to spend a minimum of $200,000 annually in exploration, following an initial 12-month period to allow for drill permitting and the completion of initial reconnaissance exploration work. Pursuant to the assignment agreements and in exchange for Monumental replacing Southern Empire as the optionee, Monumental may pay to Southern Empire a total of $975,000 (U.S.) as follows: $25,000 (U.S.) (plus value-added tax (VAT)) upon the execution of the assignment agreements (paid); $25,000 (U.S.) (plus VAT) on Feb. 24, 2026; $25,000 (U.S.) (plus VAT) on Feb. 24, 2027; $25,000 (U.S.) (plus VAT) on Feb. 24, 2028; $25,000 (U.S.) (plus VAT) on Feb. 24, 2029; $350,000 (U.S.) (plus VAT) on Feb. 24, 2030; $500,000 (U.S.) (plus VAT) upon the filing of a preliminary economic assessment technical report regarding the Centauro gold project. Should the Centauro gold project ultimately be brought into commercial production by Monumental, Southern Empire will retain a 1-per-cent net smelter return (NSR) royalty interest, with Monumental having the right to buy back a 0.5-per-cent NSR interest for $1-million (U.S.) prior to commercial production. Should Monumental at any time decide to relinquish the option, then Southern Empire retains the right to re-establish itself as optionee of the Centauro gold project, with the right to earn a 100-per-cent interest, by assuming all remaining payment and other relevant commitments to the original property vendor that exist at that particular time. Centauro gold project The Centauro property is in southeastern Chihuahua state, approximately 145 kilometres northwest of the city of Torreon. Property access is by paved roads and gravel roads in excellent condition. The extensive silica alteration exhibited at Centauro, coupled with an array of positive geochemical, geophysical and historical drill results (see Southern Empire's news release dated Dec. 12, 2022), points to the strong potential for the property to host a significant epithermal and/or Carlin-style precious metal mineral deposit. Geological features exhibited at Centauro closely reflect those observed at Southern Empire's Pedro gold project located near Mapimi in Durango state. Qualified person The scientific and technical information contained in this news release has been prepared, reviewed and approved by David Tupper, PGeo (British Columbia), Southern Empire's vice-president, exploration, and a qualified person within the context of the Canadian Securities Administrators' National Instrument 43-101, Standards of Disclosure for Mineral Projects. About Southern Empire Resources Corp. Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits in North America. On Southern Empire's Pedro gold project in northeastern Durango state, Mexico, gold mineralization is present in 12 of the 17 holes drilled to date. Please see Southern Empire's news releases posted on SEDAR+ or the company's website for further details. In the Cargo Muchacho mountains of Imperial county, California, Southern Empire owns 100 per cent of the historical gold-producing American Girl mine property and holds options to acquire a 100-per-cent interest in the adjacent 2,160-hectare (5,338-acre) Oro Cruz property, located approximately 22.5 kilometres (14 miles) southeast of the operating Mesquite gold mine of Equinox Gold Corp. At Oro Cruz, extensive historical drilling and large-scale open-pit and underground mining of the American Girl, Padre y Madre, Queen and Cross oxide gold deposits by the American Girl mining joint venture (AGMJV) occurred between 1987 and 1996. During that time, gold was recovered by either heap leaching of lower-grade ores or milling of higher-grade ores until AGMJV operations ceased in late 1996 because of declining gold prices. This cessation of operations left the Oro Cruz property with many gold exploration targets in addition to a historical inferred resource estimate, reported in 2011 by Lincoln Mining Corp., totalling 341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 grams gold per tonne at a cut-off grade of 0.68 gram per tonne gold (4,835,000 tons at 0.07 ounce gold per ton). We seek Safe Harbor.