Enduro Metals and Southern Empire Finalize Earn-In to the Pedro Gold Project, Mexico

Executive Summary

• Enduro Metals and Southern Empire have agreed to close Southern Empire’s acquisition of the 1,750‑hectare Pedro Gold Project in Durango, Mexico.
• Southern Empire will issue 2,000,000 common shares to Enduro and commit a $2 million milestone payment upon commercial production; Enduro retains a 2% NSR royalty.
• The transaction restructures the original option agreement, removes a non‑core asset from Enduro’s portfolio, and positions Southern Empire to resume drilling and development on Pedro.

Key Details

• Transaction Structure: Southern Empire will acquire 100 % of Minera BRG, S.A. de C.V., the Mexican subsidiary that holds the Pedro tenements, in exchange for:
• 2,000,000 common shares of Southern Empire issued to Enduro Metals.
• A future cash milestone payment of $2,000,000 payable upon commencement of commercial production at Pedro.
• Royalty Retention: Enduro will retain a 2 % net smelter return (NSR) royalty on any production from the Pedro Project; no buy‑down provision is included.
• Regulatory Condition: The acquisition is subject to approval by the TSX Venture Exchange.
• Project Overview – Pedro Gold:
• Location: ~80 km north of Torreón, Durango, Mexico (≈30 km west of Mapimí).
• Surface gold‑in‑soil anomaly >10 ppb over a 4 km × 1 km area.
• Historical rock sampling: up to 2.3 ppm Au (58 samples >0.25 ppm, 11 samples >1 ppm).
• IP geophysics identified elevated chargeability zones and deep targets.
• Southern Empire’s 2022 drilling program: 856.3 m core, best intercept 15.23 m @ 0.577 g/t Au (hole P22‑03).
• Geological interpretation suggests a potential “Carlin‑style” mineral system.
• Enduro Metals’ Focus: The company will concentrate on its Newmont Lake Project in British Columbia’s Golden Triangle, deeming Pedro a non‑core asset.
• Incentive Stock Options Grant: Enduro granted 3.69 million incentive stock options to officers and directors at an exercise price of $0.155, expiring five years from issuance; pending TSX Venture Exchange approval.
• Qualified Person: Mr. Cameron, P.Geo., has reviewed and taken responsibility for the technical content in accordance with NI 43‑101.

Notable Quotes

“The restructuring of this earn‑in agreement paves the way for activity to recommence at Pedro, following years of inactivity due to legislative uncertainty and weak market conditions,” – Robert Cameron, CEO, Enduro Metals.