Fortuna Updates Southern Empire on Exploration of the Centauro Gold Project, México
TSX-V: SMP
Frankfurt: 5RE
OTCQB: SMPEF
News Release
October 7, 2025
Fortuna Updates Southern Empire on Exploration of the Centauro Gold Project, México
Southern Empire Resources Corp. (“Southern Empire”; TSX-V: SMP; Frankfurt: 5RE; OTC: SMPEF) announces
that) Monumental Minerals, S.A. de C.V. (“Monumental”), a subsidiary of Fortuna Mining Corp. (“Fortuna”;
NYSE: FSM; TSX: FVI), has completed initial exploration work resulting in the definition of drill targets and the
permitting of 56 drill pads at the Centauro Gold Project (“Centauro”), located in Chihuahua State, México.
Centauro, which is situated within the southern extension of the North American Basin and Range Province,
exhibits geological characteristics comparable to the high-level alteration signatures of the fully preserved,
precious metal epithermal systems identified at Cerro Blanco in Guatemala and Cerro Negro in Argentina .
Monumental considers that these many encouraging features suggest a very robust ‘top’ of a n epithermal
system.
At Centauro, e vidence of a paleosurface top to a fully preserved , potentially precious metal bearing
hydrothermal system at depth, comes from Monumental’s recently completed geological mapping, sampling
and re-logging of 6,994 metres (“m”; ~22,946 feet) of historical Centauro drill core, which has confirmed near-
surface gold and silver anomalies, the occurrence of low-temperature sulphide indicator minerals (realgar,
orpiment, cinnabar, and stibnite), and a large (1.5 x 1.5 kilometre; “km”) intense silica-cap.
A 3,500 m (~11,483 feet ) core drill program is scheduled to start in early October, 2025 and will target
potentially precious metal-bearing northwest-southeast trending structural features, at 300 to 400 m depths
below the observed paleosurface, interpreted to be feeder zones for the alteration and intense silicification
observed at the paleosurface top.
“We are very encouraged by the excellent work being done by Monumental’s team and are excited to see the
results of this new phase of deeper drilling at Centauro,” explained Dave Tupper, Southern Empire’s Vice
President of Exploration , “and we are reminded of the numerous, very closely analogous features that
Southern Empire’s Pedro project, located 100 km to the south near Mapimí in Durango, shares with Centauro.
Although only isolated remanent zones of silica are present at Pedro, the near -surface, high-level anomalies
of gold and silver, the presence of low-temperature realgar, orpiment, and stibnite mineralization and multiple
strong northwest trending structures support the positive comparison between the two properties.”
Background and Pertinent Business Terms of the Centauro Option Assignment Agreements
On February 25, 2025, Southern Empire announced that it had entered into agreements (the “Assignment
Agreements”) allowing Monumental , Fortuna’s Mexican subsidiary, to replace Southern Empire as the
Optionee of record in an Option Agreement (the “Option”) with the original property vendor (see Southern
Empire news release of December 12, 2022), thereby permitting Fortuna, through Monumental, the ability to
earn a 100% interest in three Centauro mineral claims totalling 600 hectares (~1,483 acres). Pursuant to the
Assignment Agreements, Fortuna, through Monumental, committed to spend a minimum of $200,000
annually in exploration, following an initial 12-month period to allow for drill permitting and the completion
of initial reconnaissance exploration work.
Pursuant to the Assignment Agreements, and in exchange for Monumental replacing Southern Empire as the
Optionee, Monumental may pay to Southern Empire a total of US $975,000 as follows:
• US $ 25,000 (plus Value Added Tax; “VAT”) upon the execution of the Assignment Agreements (paid)
• US $ 25,000 (plus VAT) on February 24, 2026
• US $ 25,000 (plus VAT) on February 24, 2027
• US $ 25,000 (plus VAT) on February 24, 2028
• US $ 25,000 (plus VAT) on February 24, 2029
• US $350,000 (plus VAT) on February 24, 2030
• US $500,000 (plus VAT) upon the filing of a Preliminary Economic Assessment technical report
regarding the Centauro Gold Project
Should the Centauro Gold Project ultimately be brought into commercial production by Monumental,
Southern Empire will retain a 1% Net Smelter Return (“NSR”) royalty interest with Monumental having the
right to buy back a 0.5% NSR interest for US $1 million prior to commercial production.
Should Monumental at any time decide to relinquish the Option, then Southern Empire retains the right to
re-establish itself as Optionee of the Centauro Gold Project, with the right to earn a 100% interest, by assuming
all remaining payment and other relev ant commitments to the original property vendor that exist at that
particular time.
Centauro Gold Project
The Centauro property is in southeast Chihuahua State, approximately 145 km northwest of the city of
Torreón. Property a ccess is via paved roads and gravel roads in excellent condition . The extensive silica
alteration exhibited at Centauro, coupled with an array of positive geochemical, geophysical and historical
drill results (see Southern Empire news release of December 12, 2022), point to the strong potential for the
property to host a significant epithermal and/or “Carlin -style” precious metal mineral deposit. Geological
features exhibited at Centauro closely reflect those observed at Southern Empire’s Pedro Gold Project located
near Mapimí, in Durango State.
Qualified Person (QP)
The scientific and technical information contained in this news release has been prepared, reviewed and
approved by David Tupper, P.Geo. (British Columbia), Southern Empire's VP Exploration and a Qualified Person
within the context of Canadian Securities Administrators' National Instrument 43-101; Standards of Disclosure
for Mineral Projects (NI 43-101).
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits
in North America.
On Southern Empire’s Pedro Gold Project i n northeastern Durango State, México, gold mineralization is
present in 12 of the 17 holes drilled to date. Please see Southern Empire’s news releases posted on SEDAR+ or
www.smp.gold for further details.
In the Cargo Muchacho mountains of Imperial County, California, Southern Empire owns 100 percent of the
historical gold-producing American Girl mine property and holds options to acquire a 100 percent interest in
the adjacent 2,160-hectare (5,338-acre) Oro Cruz Property located approximately 22.5 kilometres (14 miles)
southeast of the operating Mesquite gold mine of Equinox Gold Corp.
At Oro Cruz, extensive historical drilling and large-scale open-pit and underground mining of the American Girl,
Padre y Madre, Queen , and Cross oxide gold deposits by the American Girl Mining Joint Venture ( “AGMJV”)
occurred between 1987 and 1996. During that time, gold was recovered by either heap leaching of lower -
grade, or milling of higher -grade ores until AGMJV operations ceased in late 1996 because of declining gold
prices. This cessation of operations left the Oro Cruz Property with many gold exploration targets in addition
to a historical inferred resource estimate, reported in 2011 by Lincoln Mining Corp., totaling 341,800 ounces
gold based on 4,386,000 tonnes averaging 2.2 grams gold per tonne (g Au/t) at a cut-off grade of 0.68 g Au/t
(4,835,000 tons at 0.07 ounce gold per ton; please refer to the Cautionary Notice Regarding the Oro Cruz
Property Historical Resource Estimate below).
On behalf of the Board of Directors of Southern Empire Resources Corp.,
Dale Wallster, CEO and Director
For further information on Southern Empire please visit: www.smp.gold and SEDAR+ or contact:
Lubica Keighery, (778) 889-5476, [email protected].
Cautionary Notice on Forward-Looking Information
Information provided in this news release may contain forward -looking information or forward -looking
statements that are based on assumptions as of the date of this news release. Such information or statements
reflect management’s current estimates, beliefs, intentions, and expectations and are not guarantees of future
performance. Southern Empire cautions that all forward-looking statements are inherently uncertain and that
actual performance may be affected by many material factors, many of which are beyond its respective
control. Such factors include, among other things: risks and uncertainties relating to Southern Empire’s limited
operating history, the need to comply with environmental and governmental regulations, results of exploration
programs on its projects , and those risks and uncertainties identified in its annual and interim financial
statements and management discussion and analysis. Accordingly, actual and future events, conditions , and
results may differ materially from the estimates, beliefs, intentions, and expectations expressed or implied in
the forward-looking information. Except as required under applicable securities legislation, Southern Empire
undertakes no obligation to publicly update or revise forward-looking information.
Cautionary Notice Regarding the Oro Cruz Project Historical Resource Estimate
The Oro Cruz Project historical resource estimate is disclosed in a technical report dated April 29, 2011,
prepared for Lincoln Mining Corp. by Tetra Tech, Inc. and filed on Canadian Securities Administrators' System
for Electronic Document Analysis and Retrieval (“SEDAR+”). It is termed an inferred mineral resource, which
is a category set out in NI 43 -101. It was based on historical reverse circulation and core drill hole sample,
underground channel sample, and blasthole sample assay results and calculated using ordinary kriging to
estimate gold grad es in 10 -foot-by-10-foot-by-five-foot blocks. Accordingly, Southern Empire considers this
historical estimate reliable as well as relevant as it represents key targets for future exploration work. However,
a QP has not done sufficient work to verify or classify the historical estimate as a current mineral resource and
Southern Empire is not treating this historical estimate as current mineral resources.
Cautionary Notice Regarding Proposed Exploration Work Programs
The timing and the ability to conduct Southern Empire's planned or proposed exploration programs are, among
other things, contingent on: governmental regulations allowing for the issuance of permits; affects of the
COVID-19 pandemic; the availability of exploration personnel, drill contractors, equipment, lodging, etc; and
the availability of capital required for exploration programs . Southern Empire will adhere to directives
regarding safe working practices putting worker and community health and safety first and will proceed with
exploration and development work programs only if potential risks can be effectively managed.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the Exchange) accept responsibility for the adequacy or accuracy of this release.