Southern Empire Successfully Acquires 100% Ownership of the Pedro Gold Project, México Update from Fortuna Mining Corp. on Centauro Gold Project Drilling Early Warning Report
TSX-V: SMP
Frankfurt: 5RE
OTCQB: SMPEF
News Release
January 20, 2026
Southern Empire Successfully Acquires 100% Ownership of the Pedro Gold Project, México
Update from Fortuna Mining Corp. on Centauro Gold Project Drilling
Early Warning Report
Southern Empire Resources Corp. (Southern Empire; TSX-V: SMP; Frankfurt: 5RE; OTC: SMPEF) is pleased to
announce that it has successfully completed the acquisition , from Enduro Metals Corp. (Enduro), of a 100%
interest in the mineral tenements forming the 1,750 -hectare (4,324 -acre) Pedro Gold Project located in
Durango State, México.
Pedro Gold Project Highlights
• Road accessible and located in Durango State, about 80 kilometres (km) west of the city of Torreón
• Pedro’s kilometer-scale surface gold mineralization and alteration in a favourable structural setting is
characteristic of a large precious metals epithermal vein system
• Additional geochemical and mineralogical data also support a “Carlin-style” mineral system interpretation
• Gold mineralization in 12 of the 17 holes drilled to date , with 2022 core drilling highlighted by a 15.23
metre (m) interval grading 0.577 grams gold per tonne (g Au/t)
• Historical rock samples of up to 2.3 g Au/t; with 58 samples >0.25 g Au/t, 11 samples >1.0 g Au/t collected
within a large (4 km x 1 km) gold-in-soil geochemical anomaly of >10 parts per billion gold (ppb Au)
"Now that we have acquired full ownership, the Pedro Gold Project presents a compelling exploration
opportunity for Southern Empire and strengthens our position in one of México’s most geologically
prospective, yet underexplored regions. Factors such as large-scale, anomalous gold and indicator trace
element geochemistry, including gold mineralization in 12 of the 17 holes drilled to date on the property ,
supportive property- and regional -scale structural geology, and other implications for Carlin-style
mineralization, all position us for a meaningful discovery," said Dale Wallster, Southern Empire’s CEO.
Closing of the Pedro Gold Project acquisition was pursuant to an amendment (see Southern Empire News
Release of October 1, 2025) to the original Option Agreement (see Southern Empire News Release of July 27,
2021) and resulted in Southern Empire issuing to Enduro 2,000,000 common shares , which are subject to a
four-month resale restriction, and agreeing to a future milestone payment of $2,000,000 upon
commencement of commercial production from the property. Enduro retains a 2% net smelter return (NSR)
royalty interest from future Pedro production with no buydown provision.
Centauro Gold Project Update
Fortuna Mining Corp. (Fortuna) has informed Southern Empire that it has resumed its 3,500 m core drilling
program at the Centauro Gold Project, located 100 km northwest of Pedro. Fortuna acquired the option rights
for Centauro, a geological look-a-like to the Pedro Gold Project, from Southern Empire in 2025; see Southern
Empire News Release of February 25, 2025. At Centauro, Fortuna geologists are drilling targets deeper than
historically attempted, based on their interpretation that the alteration and mineralization exposed at surface,
and in historical drilling, are representative of the upper sections of a large epithermal system at depth.
About the Pedro Gold Project
The Pedro Gold Project is located 80 km (~50 miles) from Torreón, México, in the northeastern part of the
state of Durango and approximately 30 km west of the town of Mapimí. At Pedro, a gold exploration target is
outlined at surface by a gold-in-soil geochemical anomaly greater than 10 ppb having dimensions of 4 km by
1 km. Outcrop exposure comprises prominent hematite -stained, silica -rich ridges of angular chalcedony
fragments and silicified sedimentary rocks within a coarse breccia. Historical sampling of these exposed zones
has returned gold values (in rock) ranging from background levels to a maximum of 2.3 g Au/t with 58 samples
greater than 0.25 g Au/t and 11 samples greater than 1 g Au/t. Induced Polarization ground geophysical
surveys have defined zones of elevated chargeability and identifi ed discrete deep target features. Southern
Empire completed 856.3 m of core drilling at Pedro in 2022, returning a best interval of 15.23 m grading 0.577
g Au/t in hole P22 -03, approximately 800 m from 2014 drilling by a subsidiary of Newmont Mining
Corporation. Gold mineralization at Pedro is hosted in permeable basal conglomerates deposited during
Oligocene extensional deformation that created widespread Basin and Range physiography along the eastern
part of Sierra Madre Occidental. The regional structural setting, geology, alteration and geochemistry mapped
at Pedro are indicative of a potential low-sulphidation epithermal vein system. These factors, together with a
highly anomalous trace element association of arsenic (orpiment and realgar are common), antimony,
mercury and thallium, also suggest a possible “Carlin-style” mineral system.
Quality Assurance/Quality Control (QA/QC) Data Verification Statement
All historical sampling and drilling were conducted under strict QA/QC protocols. Historical samples
mentioned in this release were prepared and analyzed at various times by ALS Limited (ALS) at its laboratories
in Chihuahua, México, and Vancouver, Canada. See news releases of Bearing Lithium Corp. dated September
16, 2012, and July 2, 2014 posted on SEDAR + for historical drill results and Commander Resources Ltd. news
releases dated February 19th, 2020, March 30th, 2021 and July 27, 2021 for QA/QC details. Drill samples
collected by Southern Empire were prepared by an ALS lab facility in Chihuahua, Chihuahua State, México and
then shipped by ALS to its North Vancouver, British Columbia facility for gold and multielement analysis (see
Commander and Southern Empire News Releases dated April 27, 2022 for assay results and QA/QC details).
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).
Early Warning
Dale Wallster, Chief Executive Officer and director of the Company, also announces that he is now a 10%
shareholder of Southern Empire. Mr. Wallster holds 8, 046,000 common shares, directly and indirectly, and
520,000 stock options, representing 10.8% of the issued and outstanding shares on a non-diluted basis and,
assuming the exercise of the 520,000 stock options, approximately 11.4% of the issued and outstanding shares
on a partially diluted basis.
The securities of Southern Empire held by Mr. Wallster are held for investment purposes. Mr. Wallster has a
long-term view of the investment and may acquire additional securities of the Company either on the open
market, through private acquisitions or as compensation or sell the securities on the open market or through
private dispositions in the future depending on market conditions, general economic and industry conditions,
the Company’s business and financial condition, reformulation of plans and/or other relevant factors.
A copy of Mr. Wallster’s early warning report will be available on the Company’s profile on SEDAR+.
About Southern Empire Resources Corp.
Southern Empire is focused on the acquisition, exploration and development of metals and minerals deposits,
and continues to seek a pipeline of high-potential assets 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 both
the historical gold-producing American Girl mine property and the Oro Cruz property located approximately
22.5 km (14 miles) southeast of the operating Mesquite gold mine of Equinox Gold Corp.
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].
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.
Cautionary Notice on Forward-Looking Information or Forward-Looking Statements
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 Mineral Resource Estimate
The Oro Cruz Project historical mineral 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+”). This estimate is termed an inferred mineral
resource, which is a category set out in NI 43-101, and 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 grades in 10 -foot-by-10-foot-by-five-foot blocks. Accordingly, Sou thern Empire
considers this historical estimate reliable as well as relevant as it presents 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 ability for Southern Empires to conduct planned or proposed exploration programs are, among
other things, contingent on: governmental regulations allowing for the issuance of permits; 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 by 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.