Southern Cross gets OK for tunnel at Sunday Creek

Mr. Michael Hudson reports SOUTHERN CROSS GOLD RECEIVES WORK PLAN APPROVAL FOR EXPLORATION TUNNEL AT SUNDAY CREEK Southern Cross Gold Consolidated Ltd. has received approval of its work plan for the exploration tunnel at its Sunday Creek gold-antimony project in Victoria, Australia. This approval marks a significant milestone in the company's progression from exploration success toward mine development. Over the past three years, Southern Cross Gold has systematically demonstrated one of the Western world's most significant gold and antimony discoveries. Purpose and benefits of the exploration tunnel The exploration tunnel (also known as an exploration decline) will provide underground access to high-grade mineralization at Sunday Creek. This will enable the company to: Conduct detailed geological mapping and sampling of mineralized structures; Execute precision underground drilling to expand and define the resource along strike and at depth; Gather geotechnical data essential for future mine design; Assess various mining methods and equipment selection for potential future operations. Underground access represents a significant advancement over surface drilling alone, enabling the company to more efficiently delineate high-grade mineralization across multiple areas. Community and environmental commitment Southern Cross Gold remains committed to the highest standards of environmental management and community engagement. Following extensive consultation, the tunnel design was refined to minimize impacts on the environment, cultural heritage areas and the community. Key benefits include: Reduced impacts from 24-hour surface drilling operations; Fewer surface drill pads required, protecting neighbours, native vegetation and heritage features. Michael Hudson, president and chief executive officer, stated: "This work plan approval is a pivotal milestone in Sunday Creek's evolution from exploration discovery to future potential mine development. We are assembling the pieces needed for a commercially viable operation: an exceptional high-grade discovery with demonstrated depth continuity, strategic freehold land ownership, proven metallurgy and now approval for underground access. "The exploration tunnel will allow us access to drill and better understand the high-grade mineralization, significantly enhancing our ability to define and expand the resource and advance technical studies. With 10 surface drill rigs operating today, the company plans to add an additional 12 drill rigs underground after the decline completion for 22 rigs in total, making it the largest predevelopment drill program in Australia. "We are grateful for the professionalism shown by Victorian government agencies throughout the approvals process. Southern Cross Gold commenced in-house engineering and environmental work in late 2024, submitted our work plan in late July, 2025, and received approval in November, 2025. "This timeline demonstrates Victoria is open for business while maintaining rigorous environmental and community standards. "We remain committed to working constructively with all stakeholders -- government, community and the Taungurung people -- as we advance this globally significant discovery responsibly. "This approval, combined with our strong balance sheet and outstanding drilling results, positions Southern Cross Gold to advance Sunday Creek toward its potential as a globally significant Victorian gold producer with a strategic antimony supply that opens the door for wider made-in-Victoria opportunities." Next steps Site establishment activities are scheduled to commence within the next month. The company will notify nearby residents of this approval and provide continuing updates as construction progresses. The company is also progressing secondary approvals under the Water Act and Environment Protection Act, working closely with the Department of Energy, Environment and Climate Action (DEECA), Resources Victoria, and other relevant agencies before underground work commences. Underground construction will take six to nine months and comply with strict operational controls to protect people, environment and infrastructure. The company will continue to: Maintain continuing community engagement throughout the construction process; Continue the expanded drilling program across Sunday Creek's multiple high-grade prospects; Advance engineering and technical studies supporting future development decisions. About Southern Cross Gold Consolidated Ltd. Southern Cross Gold Consolidated controls the Sunday Creek gold-antimony project located 60 kilometres north of Melbourne, Australia. Sunday Creek has emerged as one of the Western world's most significant gold and antimony discoveries, with exceptional drilling results. The mineralization follows a Golden Ladder structure over 1.2 kilometres of strike length, with confirmed continuity from surface to 1,100 m depth. Sunday Creek's strategic value is enhanced by its dual-metal profile, with antimony contributing approximately 20 per cent of the in situ value alongside gold, meaning, importantly, Sunday Creek can be developed primarily based on gold economics, which reduces antimony-related risks while maintaining strategic supply potential. This has gained increased significance following China's export restrictions on antimony, a critical metal for defence and semiconductor applications. Southern Cross' inclusion in the United States Defense Industrial Base Consortium (DIBC) and Australia's AUKUS-related legislative changes position it as a potential key Western antimony supplier. Technical fundamentals further strengthen the investment case, with preliminary metallurgical work showing non-refractory mineralization suitable for conventional processing and gold recoveries of 93 to 98 per cent through gravity and flotation. With a strong cash position, over 1,000 hectares of strategic freehold land ownership, and a large 200-kilometre drill program planned through Q1 2027, Southern Cross is well positioned to advance this globally significant gold-antimony discovery in a Tier 1 jurisdiction. We seek Safe Harbor.