Enduro, Southern Empire finalize Pedro earn-in

Executive Summary

• Enduro Metals Corp. and Southern Empire Resources Corp. have finalized an earn‑in transaction whereby Southern Empire will acquire a 100 % interest in the 1,750‑ha Pedro gold project in Durango, Mexico.
• Southern Empire will issue two million (2,000,000) common shares to Enduro and commit to a $2 million milestone payment upon commencement of commercial production; Enduro retains a 2 % net smelter return royalty.
• The deal re‑activates the non‑core Pedro project for Southern Empire while allowing Enduro to focus on its Newmont Lake property.

Key Details

• Transaction Structure:
• Southern Empire to acquire 100 % of Minera BRG SA de CV (owner of Pedro) by issuing 2,000,000 common shares of Southern Empire to Enduro.
• Additional $2 million milestone payment payable upon start of commercial production.

• Enduro retains a 2 % net smelter return royalty on future gold production; no buy‑down provision.

• Regulatory Conditions:

• Transaction subject to approval by the TSX Venture Exchange.

• Project Overview – Pedro Gold Project (Durango, Mexico):

• Located ~80 km from Torreón and ~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).
• 2022 drilling by Southern Empire: 856.3 m total, best interval 15.23 m @ 0.577 g/t Au (hole P22‑03).

• Geophysical work identified elevated chargeability zones; alteration suggests a possible Carlin‑style system.

• Equity Incentive Plan:

• Enduro granted 3.69 million incentive stock options to officers and directors at an exercise price of $0.155 per share, expiring five years from issuance, pending TSX Venture Exchange approval.

• Qualified Person:

• Robert Cameron, P.Geo., qualified under NI 43‑101, reviewed and assumes responsibility for the technical content.

Notable Quotes

(No direct quotes were provided in the release.)