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Southern Empire Announces AGM Results and Amends Oro Cruz Option Agreement

Press Release

Annual General Meeting

Southern Empire announces that shareholders overwhelmingly approved all motions put forth at the Annual General Meeting held on September 1, 2022, including the re-election of all directors, the appointment of Davidson & Company LLP as auditor and the approval of a 10% rolling stock option plan.

A total of 21,122,008 common shares, being 33.4% of Southern Empire’s issued and outstanding share capital, were voted at the Annual General Meeting. The votes cast for each matter were as follows:

Resolution For % Withheld/Against %
Number of Directors 100.00% 0.00%
  Dale Wallster 97.58% 2.42%
  Ronald Netolitzky 100.00% 0.00%
  James Currie 99.97% 0.03%
  Andrew Davidson 97.58% 2.42%
  P.E. (Ted) Kavanagh 99.97% 0.03%
  Alex Heath 99.97% 0.03%
Appointment of Davidson & Company LLP 100.00% 0.00%
Stock Option Plan 99.72% 0.28%

Amendment to Oro Cruz Option Agreement

Southern Empire announces that it has entered into an amendment agreement with Ronald Netolitzky, Chairman and director of Southern Empire, to amend the terms of the previously announced option agreement to acquire a 25% interest in the Oro Cruz Property (see news release June 26, 2020) located in the Cargo Muchacho mountains of Imperial County, California.

Pursuant to the terms of the amendment agreement, Southern Empire will exercise its option to acquire a 25% interest in the Oro Cruz Property by issuing a total of 2,000,000 common shares to Mr. Netolitzky in lieu of the final two option payments totaling $200,000. The Southern Empire shares to be issued under the amendment agreement will be subject to restrictions on resale for a period of four months from the date of issuance.  The amendment agreement and the transactions contemplated therein are subject to acceptance of the TSX Venture Exchange.

Upon closing of the amendment agreement, Southern Empire will own a 25% interest in the Oro Cruz Property and have the option to acquire the remaining 75% by making a final payment of US $100,000 to an underlying vendor by April 15, 2023.

Qualified Person

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 (“QP”) 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.

In northeastern Durango State, México, Southern Empire has an option to acquire a 100-per-cent beneficial interest in the 1,750-hectare Pedro Gold Project. At Pedro, in the spring of 2022, Southern Empire drilled gold mineralization approximately 800 metres from 2014 drilling by a subsidiary of Newmont Mining Corporation. Gold mineralization, associated with highly anomalous arsenic (orpiment and realgar common), antimony, mercury and thallium, has been identified hosted in permeable basal conglomerates deposited during Oligocene extensional deformation, the latter forming widespread Basin and Range physiography along the easter part of Sierra Madre Occidental. Gold is present in 12 of the 17 holes drilled at Pedro to date. Please see Southern Empire’s news releases posted on SEDAR 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 leaving 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: and SEDAR or contact: Lubica Keighery, (778) 889-5476, [email protected] .


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