Southern Empire, Enduro Metals finalizes Pedro earn-in

Executive Summary

• Southern Empire Resources Corp. and Enduro Metals Corp. have finalized the earn‑in, resulting in Southern Empire acquiring a 100% interest in the Pedro Gold Project (1,750 ha) in Durango State, Mexico.
• The transaction is effected by issuing 2 million Southern Empire common shares to Enduro and includes a future $2 million milestone payment upon commencement of commercial production.
• Enduro retains a 2 % net smelter return royalty on all future Pedro production.

Key Details

• Transaction Structure:
• Southern Empire will become the 100 % beneficial owner of Minera BRG SA de CV (the Mexican subsidiary that holds the Pedro tenements).
• Consideration: issuance of 2,000,000 Southern Empire common shares to Enduro.

• Additional contingent consideration: $2 million milestone payment due when commercial production starts.

• Royalty: Enduro retains a 2 % net smelter return (NSR) royalty on all future Pedro gold production; no buy‑down provision is included.

• Regulatory Condition: Transaction subject to approval by the TSX Venture Exchange.

• Project Overview – Pedro Gold Project:

• Location: ~80 km north‑east of Torreón, Durango, Mexico (≈30 km west of Mapimí).
• Surface anomaly: gold‑in‑soil >10 ppb over a 4 km × 1 km area.
• Historical rock sampling: up to 2.3 g/t Au, with 58 samples >0.25 g/t and 11 samples >1 g/t.

• Recent drilling (2022): 856.3 m core, best intercept 15.23 m @ 0.577 g/t Au (hole P22‑03).

• Geology & Exploration Highlights:

• Gold hosted in permeable basal conglomerates of Oligocene extensional deformation; Carlin‑style mineralization potential indicated by trace element anomalies (As, Sb, Hg, Tl) and alteration.

• Induced polarization surveys identified elevated chargeability zones and deep‑target features.

• Qualified Person: David Tupper, P.Geo., Vice‑President Exploration, Southern Empire (NI 43‑101 qualified).

Notable Quotes

(No direct quotes were provided in the release.)