NEWS RELEASE

Southern Empire Provides Oro Cruz Project Exploration Update

Southern Empire Resources Corp. (Southern Empire; TSX-V: SMP; Frankfurt: 5RE; OTC: SMPEF) is pleased to provide an update on its recent exploration activities at the Oro Cruz Project, including:

  • The collection of 10 line-kilometres of DC Resistivity/Induced Polarized (DC/IP) geophysical data, by Zonge International Inc., in the area of the Cross gold deposit
  • Submittal of sample materials totaling 630 kilograms (kg; 1,388 lbs) from our recent sonic drilling of the historical American Girl and Padre y Madre heaps (see Southern Empire news release of March 3, 2021) to Blue Coast Research Ltd. and SGS Canada Inc. for metallurgical testing
  • Submittal of grab samples collected from the American Girl, Padre y Madre and Oro Cruz waste rock dumps for gold analysis by the Saskatchewan Research Council (SRC) geoanalytical laboratories
  • Submittal of rock grab samples and stream sediment samples collected from the Colorado Mine Fault area in the northern part of the Oro Cruz Property for gold and multi-element geochemical analysis by the SRC

DC/IP Geophysical Survey

The Cross DC/IP survey grid was designed to provide control data relative to the known Cross gold deposit, as well as to test for previously unrealized and unexplored gold targets. The geophysical survey grid, comprised of five, two-kilometre (km) grid lines spaced 300 metres (m) apart and oriented at a 065o azimuth, overlays the area of the Cross gold deposit and its potential southeast extension to depth.

Zonge International crews used a receiver dipole-length of 100 m in the pole-dipole configuration, utilizing Zonge’s 32-bit ZEN receivers and a signal source provided by a 30kW, GGT-30 Transmitter.

The DC/IP survey work was completed pursuant to the Bureau of Land Management’s (BLM) Casual Use protocols. Processing of collected data is underway.

Metallurgical Test Work

Blue Coast Research Ltd. (Blue Coast) of Parksville, British Columbia has been contracted to undertake metallurgical testing of composite samples derived from approximately 157 kilograms (346 lbs) and 101 kg (222 lbs) of select sonic drill sample materials from each of the American Girl and Padre y Madre historical heap leach pads.

The Blue Coast metallurgical test work will include:

  • Composite head analysis
  • A cyanidation study to determine amenability of pad material to heap leaching and gold recovery
  • Heap leach simulation tests, including column tests to determine gold extraction at different crush sizes, is planned dependent on the results of the cyanidation study.

SGS Canada Inc. (SGS) in Lakefield, Ontario has also been contracted to provide additional metallurgical scoping level test analysis on similar composite samples derived from approximately 214 kg (472 lbs) and 143kg (316lbs) of select sonic drilling sample materials from each of the American Girl heap and the Padre y Madre heap respectively.

The SGS scoping level metallurgical test program will provide:

  • Sample characterization including assaying, particle size analysis and mineralogy
  • Diagnostic leach results identifying the main gold associations
  • Coarse ore bottle roll gold recoveries and reagent consumption data
  • Copper recoveries and cyanide regeneration data using the SART process (Sulphidization, Acidification, Recycling and Thickening of precipitate)

All sample materials have now been received at both the Blue Coast and SGS labs.

Waste Rock Dump Characterization

In a preliminary effort to characterize the gold potential of the large historical waste rock dumps located at each of the formerly producing American Girl, Padre y Madre and Oro Cruz mine areas, Southern Empire field crews have collected 25m to 50m spaced rock grab samples from the waste rock dump surfaces and perimeter slopes. Results will be used to design a follow-up program of Reverse Circulation (RC) or sonic drilling to map out potential gold-enriched areas within the dumps that could be amenable to heap leach processing.

To date, rock samples collected from the American Girl, Padre y Madre and Oro Cruz waste dumps have been submitted for gold analysis by the SRC Geoanalytical laboratories in Saskatoon, Saskatchewan. If warranted, additional multi-element Induced Coupled Plasma (ICP) geochemical analysis will be performed.

Colorado Mine Fault Area Mineralization

Colorado Mine Fault Area Mineralization

Colorado Mine Fault Trend Reconnaissance Prospecting

Recent airborne magnetic data collected by Southern Empire over the entire Cargo Muchacho Mountains area was analyzed by Condor Consultants of Denver, Colorado, and that review, combined with a revised understanding of the structural framework of the Oro Cruz Cross mine as provided by Tarryn Cawood’s Ph.D. dissertation, has led Southern Empire crews to examine the Colorado Mine Fault (CMF) area in the northern portion of the Oro Cruz Property.

Preliminary field work included the submittal of prospected rock grab samples and stream sediment samples collected in the area to SRC for gold and multi-element geochemical analysis. Copper and iron oxide mineralization, commonly associated with gold in the Cargo Muchacho Mountains, was identified in multiple locations along the CMF.

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 (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 gold deposits in North America.

In the Cargo Muchacho mountains of Imperial County, California, Southern Empire owns 100 per cent of the historical gold-producing American Girl mine property and also holds options to acquire a 100-per-cent 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; ultimately owned 53 per cent by MK Gold Company and 47 per cent by Hecla Mining Company) occurred between 1987 and 1996. At 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 Gold Project with many gold exploration targets in addition to the historical inferred resource estimate, reported In 2011 by Lincoln Mining Corp., totalling 341,800 ounces gold based on 4,386,000 tonnes averaging 2.2 grams gold per tonne at a cut-off grade of 0.68 g/t Au (4,835,000 tons at 0.07 ounce gold per ton; please refer to the Cautionary Notice Regarding Historical Resource Estimate below).

With its strong working capital position, which also includes a significant equity holding in Augusta Gold Corp., Southern Empire has the financial resources to continue exploration and development programs at Oro Cruz and consider new opportunities.

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 both www.smp.gold and SEDAR or contact: Lubica Keighery, (778) 889-5476, lubica@smp.gold .

Cautionary Notice on Forward-Looking Information

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 a number of material factors, many of which are beyond its respective control. Such factors include, among other things: risks and uncertainties relating to Southern Empire 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 Historical Resource Estimate

The historical resource estimate outlined above 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). It is termed an inferred mineral resource, which is a category set out in NI 43-101. It 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, Southern Empire considers this historical estimate reliable as well as relevant as it represents 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.

Work Programs During the COVID-19 Pandemic

Timing of Southern Empire’s exploration programs will be contingent on governmental regulations regarding the COVID-19 pandemic and also the availability of exploration-related personnel, drill contractors, equipment, lodging, et cetera. Southern Empire will adhere to COVID-19 directives regarding safe working practices putting worker, community and national safety first and will proceed with exploration and development work programs only if potential COVID-19 risks can be effectively managed.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.

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