Southern Empire arranges $1.05-million financing

• Southern Empire Resources Corp. announced a non-brokered private placement financing of up to 15 million common shares at $0.07 per share.
• Gross proceeds are targeted at up to $1.05 million CAD/USD (currency not specified, assumed USD based on context).
• Proceeds are designated for exploration of mineral properties and general working capital.
• Securities carry a four-month resale restriction from the date of issue.
• Finders' fees are capped at 6% of proceeds.
• The offering is subject to TSX Venture Exchange approval.

• Capital Injection: The $1.05 million raise represents a significant increase over previous financings ($100,000 in mid-2025), indicating management's intent to scale exploration activities following the Pedro project acquisition.
• Pricing Dynamics: The offering price of $0.07 is approximately 16% above the recent market close of $0.06 (April 16, 2026). This premium suggests investor confidence in the company's asset base post-acquisition, mitigating some dilution concerns compared to a discount placement.
• Dilution Risk: Issuing 15 million shares introduces immediate dilution. Without total outstanding share count data, the exact percentage is unknown but likely material for a junior explorer. This is a standard cost of growth in this sector.
• Strategic Alignment: The capital aligns with the January 2026 acquisition of the Pedro project, providing necessary liquidity to move from acquisition to active drilling and definition of resources.

• Company: Southern Empire Resources Corp., focused on gold exploration in Mexico (Durango State).
• Flagship Project: Pedro Gold Project (1,750 ha / 4,324 ac), acquired fully from Enduro Metals in January 2026.
• Project Geology: Carlin-style epithermal system interpretation supported by geochemistry and alteration patterns. Surface gold-in-soil anomaly >10 ppb over a 4 km x 1 km area.
• Historic Data: Best historic drill intercept is 15.23 m @ 0.577 g/t Au (hole P22-03). Gold mineralization intersected in 12 of 17 holes drilled to date.
• Secondary Asset: Centauro gold project, currently under option by Fortuna Mining (Monumental Minerals), with Southern Empire retaining a royalty interest.