NEWS RELEASE

Southern Empire Resources Closes $4 Million Private Placement Financing

Southern Empire Resources Corp. (“Southern Empire”; TSX-V: SMP; Frankfurt: 5RE) is pleased to announce it has closed its previously announced non-brokered private placement financing by issuing 8,043,861 common shares of Southern Empire (each a “Share”) at a price of $0.50 per Share for gross proceeds of $4,021,930 (the “Offering”).

The net proceeds from the Offering will be used to continue exploration programs on the Oro Cruz and Eastgate gold projects, for the potential acquisition of new exploration and development projects and to provide working capital for general corporate purposes. 

Southern Empire CEO and Director, Dale Wallster, states, “We appreciate the strong interest in this oversubscribed financing. Southern Empire is currently drilling at Eastgate and we look forward to keeping you updated as we advance our two excellent gold projects.” 

The Shares will be subject to restrictions on resale until October 12, 2020.  Southern Empire paid qualified finders a fee of $133,328 and issued 116,800 shares to qualified finders pursuant to the Offering. 

Subsequent to the Offering, Southern Empire will have 50,906,800 common shares issued and outstanding.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons in the absence of U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

About Southern Empire Resources Corp.

Southern Empire is focused on the acquisition, exploration and development of gold deposits in North America, currently with 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 approximately 2,160 hectare (5,338 acre) Oro Cruz Property located 22.5 km (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.

Southern Empire also owns an 85% interest in the 817 hectare (2,020 acre) Eastgate Gold Project, located 81 kilometres (50 miles) southeast of the city of Fallon in Churchill County, Nevada. Southern Empire’s goal is to expand on the results from historical small-scale mining and Reverse Circulation drilling and define a high-grade gold/silver deposit hosted by multiple, steeply dipping, subparallel low-sulphidation, quartz-adularia epithermal vein systems occurring on the property.

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.

On behalf of the Board of Directors,

Dale Wallster, CEO and Director

Southern Empire Resources Corp.

For further information please visit www.smp.gold or contact: Lubica Keighery at (778) 889-5476; lubica@smp.gold

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.

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