La Loma is located in Durango State, México approximately 50 kilometres (“km”) southeast of Southern Empire’s Pedro Gold Project and 35 km west-southwest of the major city of Torreón.

It consists of of the 23,750 hectare (“ha”; 58,687 acre) acquired by staking.

Southern Empire’s La Loma, Pedro, and Centauro Gold Projects occur within the north Mexican Oligocene Basin and Range physiographic province. These three project areas define a 150-kilometre trend of gold occurrences that are associated with arsenic-mercury-antimony mineralization, together with silica and clay alteration, all hosted in the same package of Cretaceous limestones and mudstones and Tertiary ignimbrite eruptive and polymictic conglomerate lithologies.

As part of the “Laramide” Lower Cretaceous to early Tertiary, Mexican Fold and Trust Belt, the stratigraphy of the area exhibits repeated, elongate north-south folds that are regularly interrupted by moderate- to high-angle thrusts and later extensional faulting (see Figure 2).

A significant portion of the La Loma property covers “Terrano Naccional” (federal land) and is therefore unencumbered by private or communal Ejido ownership (see Figure 2). Access is limited to several broad, ephemeral riverbeds (arroyos) extending from the south.

The La Loma property covers a large, unexplored area having Au, arsenic (“As”), antimony (“Sb”), mercury (“Hg”), molybdenum (“Mo”), and silver (“Ag”) stream sediment geochemical anomalies as reported by the Secretaria de Economia de México, (“SGM”) in 2006 (see Figure 3). This government stream sediment sampling survey was completed at a low, regional density. Additionally, much of the regional geological mapping was accomplished with the aid of stereoscopic interpretation.

Hyperspectral mapping (ASTER 2003/06; see Figure 2) shows that these geochemical anomalies are often coincident with zones of strong silica alteration.

The SGM regional geochemical sediment sample results also suggest significant potential for Carbonate Replacement Deposit (“CRD”) mineralization in the La Loma area, especially with the Ojuela and La Platosa CRD mines (both now closed) located only 50 km to the north. Significant anomalies supporting the prospectivity for CRD mineralization also occur to the southeast of the La Loma claim, however this is a protected area.

At La Loma, Southern Empire has planned exploration programs for spring 2023 that will include:

• Higher density stream sediment sampling
• Prospecting and preliminary geological mapping