Enduro Metals closes sale of Pedro project

Executive Summary

• Enduro Metals Corp. has completed the sale of its 100% interest in the Pedro gold project in Durango, Mexico, to Southern Empire Resources Corp.
• The transaction consideration includes the issuance of 2 million common shares to Enduro and a future milestone payment of $2 million upon the commencement of commercial production.
• Enduro retains a 2% net smelter return (NSR) royalty interest on future production from the project, with no buydown provision.

Key Details

• Transaction Status: Closed sale of 100% interest in the Pedro gold project.
• Asset Details: 1,750-hectare Pedro gold project located in Durango state, Mexico.
• Counterparty: Southern Empire Resources Corp.
• Equity Consideration: Southern Empire issued 2,000,000 common shares to Enduro.
• Cash/Milestone Consideration: Agreement for a future payment of $2,000,000 upon commencement of commercial production from the Pedro gold project.
• Royalty Interest: Enduro retains a 2% net smelter return (NSR) royalty interest from future Pedro production.
• Royalty Terms: No buydown provision exists for the NSR.
• Share Restrictions: The 2 million shares issued to Enduro are subject to a four-month resale restriction from the date of issuance.
• Acquisition Structure: Southern Empire acquired its interest by purchasing a 100% beneficial interest in Minera BRG S.A. de C.V., the Mexican subsidiary of Enduro that owned the Pedro mineral tenements.
• Reference: Transaction is pursuant to amendments of the original option agreement announced in Enduro's news release of Oct. 1, 2025.

Notable Quotes

• Robert Cameron, PGeo, Enduro's chief executive officer, is identified as the company's qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical aspects of this release.