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SMP.V ·

Southern Empire Completes First Phase of Core Drilling at Eastgate Gold Project, NV

Exploration Programs

SOUTHERN EMPIRE RESOURCES CORP.

TSX-V: SMP

Frankfurt: 5RE

NEWS RELEASE

June 18, 2020

Southern Empire Completes First Phase of Core Drilling at Eastgate Gold Project, NV

Southern

Empire

Resources

Corp.

(“Southern

Empire”;

TSX-V:

SMP;

Frankfurt:

5RE)

has

now

completed

the

first

phase

of

a

multi-site

drill

program

on

the

817

hectare

(2,020

acre)

Eastgate

Gold

Project

in

Churchill County, Nevada.

Eastgate Gold Project – First Phase, Core Drill Program Highlights and Objectives:

●

Six HQ-size core holes totalling 906 metres (2,972 feet) were completed

●

Permit amendment process has been initiated for a second phase of drilling

Southern

Empire’s

first-pass

core

drilling

program

of

the

Double

Eagle

high-grade

gold/silver

epithermal

vein

system,

one

of

several

vein

systems

at

Eastgate,

was

designed

to

accomplish

the

following

specific

goals:

●

To

confirm

historical

Reverse

Circulation

(“RC”)

drill

assay

results

reported

by

past

operators

of

the property

●

Test the zone of known gold mineralization with modest step-outs to the north and south

●

Collect

specific

and

correlative

analytical,

structural

and

lithological

information

of

the

vein

system while incorporating accurate down hole survey control that only core drilling can provide

All

core

is

now

being

logged

and

selective

samples

will

be

submitted

to

ALS

USA

Inc.’s

laboratories

in

Reno, Nevada. Assay results will be released after they become available.

David

Tupper,

Southern

Empire’s

VP

of

Exploration

stated:

"The

initial

phase

of

drilling

at

Eastgate

was

flawlessly

executed

by

Southern

Empire’s

team

in

the

field

and

our

drill

contractors,

Falcon

Drilling,

Inc.,

with

the

first

two

confirmation

holes

intersecting

the

vein

structure

at

expected

down

hole

intervals,

and

the

second

hole

(EG20-02)

piercing

the

vein

structure

within

approximately

four

metres

of

historical

hole

RC90

CEG-5,

which

intersected

3.05

m

grading

8.57

g

Au/t.

Drilling

was

completed

on

time,

on

budget

and

with no safety incidents" Mr. Tupper continued.

Dale

Wallster,

Southern

Empire’s

President

and

CEO

stated:

“With

recently

completed

and

oversubscribed

financing,

for

total

proceeds

of

approximately

$4

million,

Southern

Empire

has

the

financial

flexibility

to

expand

this

drill

program

in

a

meaningful

way.

A

continued,

methodically

executed

drill

program

will

allow

for the accelerated advancement of our 85% owned Eastgate Gold Project.”

Core Drilling vs Reverse Circulation Drilling

Core

drilling

utilizes

a

diamond-impregnated

drill

bit

to

collect

a

cylindrical

sample

of

rock

in

the

state

that

it

is

found,

providing

accurate

lithological

and

structural

data

and

uncontaminated

samples

over

specific,

discrete

sample

intervals.

RC

drilling

is

commonly

used

in

exploration,

as

it

is

both

faster

and

less

costly.

However,

RC

drilling

does

not

produce

a

core

sample,

but

rather

bores

a

hole

in

the

ground

by

breaking

the

rock

into

small

chips

samples;

it

does

not

allow

for

any

information

regarding

geological

structures

or

exact

lithological

contacts

to

be

collected

and

these

are

paramount

to

the

understanding

of

gold

deposits

and

targeting

of

exploration

efforts.

In

addition,

RC

drilling

does

not

allow

for

specific

lithological

intervals

to

be

sampled

as

mixing

of

the

rock

chips

retrieved,

over

larger

sample

intervals,

occurs

during

the

RC

process.

Data Verification, Sampling Procedures and Quality Assurance/Quality Control (QA/QC)

No

historical

core

holes

have

been

drilled

on

the

Eastgate

Property

and

no

historical

RC

drill

cuttings

exist

for

the

project.

Historical

RC

hole

locations

are

based

on

exploration

map

grids

that

have

been

subsequently

field

checked

and

tied

into

the

UTM

coordinate

system.

With

no

reliable

downhole

survey

data available for historical drill holes, there is uncertainty regarding their relative end of hole positions.

All

of

the

drill

core

has

been

logged

(geological

and

geotechnical),

tagged,

photographed,

and

zones

of

significant

alteration

and

veining

will

be

cut

and

sampled.

Down-hole

orientation

surveys

were

performed

for the current drill program using a Reflex EZ-Trac tool on the drill.

Drill

core

will

be

retained

for

a

permanent

record

and

stored

in

a

secure

core

storage

facility

in

Fallon,

Nevada.

One-half

of

selected

drill

core

samples

will

be

cut,

recorded,

checked

and

sealed

in

individual

bags

at

the

geochemistry

laboratory

of

ALS

USA

Inc.

in

Reno,

Nevada,

which

conforms

with

the

Standards

Council

of

Canada,

Requirements

and

Guidance

for

the

Accreditation

of

Testing

Laboratories

(ISO/IEC

17025:2005, RG-MINERAL).

Standards,

blanks,

and

duplicate

samples

will

be

assayed

with

the

core

samples

to

verify

the

quality

control

and

assurance

of

the

geochemical

sample

process.

Both

low

and

high

grade

standards

will

be

run.

Southern

Empire

will

run

10%

quality

control

and

assurance

material

to

assure

the

validity

of

the

assays

received. Standards and blanks are provided by Shea Clark Smith/ MEG Labs of Reno, Nevada.

Qualified Person (QP)

The

scientific

and

technical

information

contained

in

this

news

release

has

been

prepared,

reviewed,

verified

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.

Work Programs During the COVID-19 Pandemic

While

the

timing

of

Southern

Empire's

on-going

exploration

programs

are

contingent

on

governmental

regulation

regarding

the

COVID-19

pandemic,

no

meaningful

delays

to

the

completion

of

the

Eastgate

drill

program

occurred.

Southern

Empire

and

all

subcontractors

adhered

to

all

government

regulated

COVID-19

protocols

and

restrictions

regarding

personnel

management,

lodging,

and

travel.

As

the

health

and

safety

of

employees,

contractors

and

associated

communities

is

a

top

priority,

Southern

Empire

will

continue

to

monitor

COVID-19

regulatory

protocol

and

follow

governmental

regulations

and

recommendations in future work related to both the Eastgate and Oro Cruz Gold Projects.

As

part

of

the

safety

protocol,

the

companies

have

implemented

screening

procedures,

daily

temperature

monitoring,

self-assessment

checklist

and

issued

directives

regarding

social

distancing

to

ensure

a

safe

environment for operations.

About Southern Empire Resources Corp.

Southern

Empire

is

focused

on

the

acquisition,

exploration

and

development

of

gold

deposits

in

North

America, currently having two projects in the American southwest.

In

the

Cargo

Muchacho

mountains

of

Imperial

County,

southeast

California,

Southern

Empire

holds

an

option

to

acquire

a

75%

interest

in

the

2,160

hectare

(5,338

acre)

Oro

Cruz

Property

located

approximately

22.5

kilometres

(14

miles)

southeast

of

the

Mesquite

gold

mine

of

Equinox

Gold

Corp.

With

a

history

that

includes

extensive

drilling

and

large-scale

open

pit

and

underground

mining

that

was

suspended

during

the

gold

market

downturn

in

1996,

the

Oro

Cruz

Gold

Project

hosts

numerous

exploration

targets

in

addition

to

a

high-grade

oxide

gold

zone

that,

based

on

the

historical

mine

records,

is amenable to conventional heap leach extractive methods.

On behalf of the Board of Directors,

Dale Wallster, CEO and Director

Southern Empire Resources Corp.

For further information please visit

​

www.smp.gold

​

and review our

​

SEDAR filings

​

or contact:

Lubica Keighery at (778) 889-5476,

​

[email protected]

Cautionary Notice on Forward-Looking Information

Information

set

forth

in

this

news

release

may

contain

forward-looking

statements

that

are

based

on

assumptions

as

of

the

date

of

this

news

release.

All

statements,

other

than

statements

of

historical

fact,

that

address

activities,

events

or

developments

that

Southern

Empire

expects

or

anticipates

will

or

may

occur

in

the

future

are

forward-looking

statements

that

reflect

management’s

current

estimates,

beliefs,

intentions

and

expectations.

They

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

a

number

of

material

factors,

many

of

which

are

beyond

Southern

Empire’s

control.

Such

factors

include,

among

other

things:

risks

and

uncertainties

relating

to

Southern

Empire’s

limited

operating

history

and

the

need

to

comply

with

environmental

and

governmental

regulations.

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 statements or information.

Neither

TSX

Venture

Exchange

nor

its

regulation

services

provider

(as

that

term

is

defined

in

the

policies

of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.