Enduro Metals Completes Sale of Pedro Gold Project, Mexico to Southern Empire

On January 20, 2026, Enduro Metals completed the sale of its 100% interest in the Pedro Gold Project (Durango, Mexico) to Southern Empire Resources Corp. (SMP). The consideration for the sale includes: - Cash: US$2,000,000 (approx. C$2.8 million) paid at closing. - Shares: 2,000,000 common shares of Southern Empire Resources Corp. - Milestone Payment: A future payment of US$2,000,000 upon commencement of commercial production at Pedro. - Royalty: A retained 2% Net Smelter Return (NSR) royalty with no buy-down provision. The Pedro asset was considered non-core to Enduro, having been acquired through the merger with Commander Resources in May 2025. The shares issued to Enduro are subject to a four-month resale restriction.

This development is Material - Positive. For a junior explorer with a market capitalization under C$20 million, a non-dilutive cash injection of ~C$2.8 million is significant. - Balance Sheet Strength: Prior to this sale, Enduro raised ~C$3.6 million in September 2025. Adding C$2.8 million creates a formidable treasury (likely exceeding C$5-6 million total), allowing the company to fully fund the 2026 drill program at the flagship Newmont Lake project without immediate need for further equity financing. - Strategic Focus: The sale monetizes a legacy asset from the Commander Resources acquisition that was not central to Enduro's "Golden Triangle" thesis. It removes holding costs associated with the Mexican property. - Upside Optionality: The retained equity in Southern Empire and the royalty interest provide free exposure to any future success at Pedro, while the cash is available immediately for core operations. - Valuation: The cash portion of the deal alone represents roughly 15-20% of the company's current market capitalization, effectively lowering the enterprise value and making the exploration upside cheaper for investors.

Enduro Metals Corporation is a Canadian exploration company focused on the Newmont Lake Project in British Columbia's "Golden Triangle." - Flagship Project: Newmont Lake (688 sq km). - Location: Golden Triangle, BC, adjacent to major deposits (Galore Creek, KSM, Snip). - Key Targets: - Andrei: A large (4km x 1.2km) porphyry Cu-Au geophysical target. Recent sampling (Jan 2026) confirmed high-grade surface mineralization. - Camp Zone: High-grade gold target. - Burgundy & McLymont: Historical resource/exploration areas. - History: The company consolidated the district and recently merged with Commander Resources (May 2025) to acquire additional technical expertise and a broader portfolio (including the now-sold Pedro asset).