Sitka Intersects 47.6 Metres of 2.09 g/t Gold, Including 8.0 Metres of 5.07 g/t Gold near Surface at the Saddle Zone at Its RC Gold Project, Yukon
The high-grade, near surface gold mineralization at Saddle is within the proposed pit of the Blackjack Mineral Resource Estimate (MRE), 300 m east of the current Blackjack resource outline, and highlights the potential of this area to significantly increase the Blackjack MRE
New results from step-out drilling at the Eiger Deposit identify significant widths of Eiger style gold mineralization on the western margin of the current Eiger MRE
A total of 18,662 m of drilling have been completed this year with assays pending for 12,951 m (31 drill holes) completed across the Blackjack, Saddle, Eiger and Rhosgobel targets
Vancouver, British Columbia--(Newsfile Corp. - July 17, 2025) - Sitka Gold Corp. (TSXV: SIG) (FSE: 1RF) (OTCQB: SITKF) ("Sitka" or the "Company") is pleased to announce assay results from its ongoing 30,000 metre diamond drill program currently underway at its 100% owned, road accessible RC Gold Project located in the Yukon's prolific Tombstone Gold Belt. Recent results from the Saddle zone, located between the Blackjack and Eiger MRE's (see Figure 1), have returned several intersections of near surface multi-gram gold mineralization that lie within the proposed pit boundary of the Blackjack MRE, but are 300 m east of the current resource outline. Assay results of up to 47.6 m of 2.09 g/t gold, including 8.0 m of 5.07 g/t gold, emphasize the potential of the Saddle zone to significantly increase the Blackjack MRE. Drilling is currently ongoing with four drill rigs turning at Blackjack, Saddle, Eiger and Rhosgobel and assays are pending for an additional 12,951 metres drilled to date this season.
Table 1: Assay highlights for this release (see Table 2 for details)
*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths.
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_002full.jpg
"Assays from the initial drilling completed at RC Gold this summer season have returned some excellent results," said Cor Coe, Director and CEO of Sitka. "The high-grade intercepts encountered in the first follow-up holes of the season at the Saddle zone are particularly impressive, with near-surface, multigram gold intervals that are approximately 300 metres east of the current Blackjack resource and located within the conceptual pit shell of that deposit. Results of up to 47.6 metres of 2.09 grams per tonne gold, including 14.0 metres of 3.78 grams per tonne gold, demonstrates the potential of this area to add significant ounces to our existing gold resources and further supports the possibility that the Saddle Zone could link gold mineralization between the Blackjack and Eiger gold deposits."
SADDLE ZONE DRILLINGAt the Saddle Zone, 11 holes for a total 2,918 m have been completed to date in 2025 and results for holes DDRCCC-25-081, DDRCCC-25-084 and DDRCCC-25-087 have been received. All holes were drilled within the proposed pit limit of the Blackjack MRE, but outside of the current resource outline (Figure 1) and all were drilled with a northerly azimuth to test the eastern extension of mineralization identified in hole DDRCCC-23-054 (84.0 m of 1.21 g/t Au; see Company press release dated October 30, 2023). All holes intersected a megacrystic quartz monzonite sill cutting hornfelsed sedimentary rock. The sill, which strikes approximately WNW and dips gently to the north, is estimated to be about 10-15 m true thickness and has been drilled along strike for approximately 350 m. Mineralization was intersected in the sill and extends into the adjacent sedimentary rocks.
All three of the holes DDRCCC-25-081, 084 and 087 encountered multi-gram gold mineralization from near surface to depth in both the quartz monzonite sill and adjacent sedimentary rocks. Hole 081 returned 42.0 m of 0.96 g/t Au from 102.0 m; Hole 084 returned 24.0 m of 1.36 g/t from 85.0 m; and Hole 087 returned 47.6 m of 2.09 g/t from 33.5 m, including 14.0 m of 3.78 g/t Au from 67.0 m and 8.0 m of 5.07 g/t Au from 73.0 m (see Figure 2). These holes are within the proposed pit outline for the current Blackjack MRE (see Figure 1) but still some 300 m east of the currently modelled resource outline.
Figure 1: Plan map of drilling at the Blackjack, Saddle and Eiger Zones
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_003full.jpg
Figure 2: Cross Section of hole DDRCCC-25-087 at the Saddle Zone where mineralization occurs in the quartz monzonite sill and in the adjacent metasedimentary rocks.
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_004full.jpg
BLACKJACK DEPOSIT DRILLINGTo date, 14 drill holes for a total of 7,405 metres have been completed at the Blackjack deposit and results for hole DDRCCC-25-080 have been received. This hole was drilled to test the updip extension of DDRCCC-23-047 (219.0 m of 1.36 g/t Au - see Company news release dated September 26, 2023). The hole intersected dykes of megacrystic quartz monzonite in altered metasediments crosscut by sheeted quartz veins with local multi-gram intercepts of gold mineralization (see Table 2).
EIGER DEPOSIT DRILLINGTo date, 10 drill holes for a total of 4,417 metres have been completed at the Eiger deposit. Assay results have now been received for holes DDRCCC-25-078, DDRCCC-25-079 and DDRCCC-25-082 (see Table 2). Drill holes 078, 079 and 082 were collared at the same location on the western margin of the Eiger Stock, with the objective of expanding the current Eiger Mineral Resource Estimate (see Figure 1).
All drill holes intersected sheeted quartz veins within the metasedimentary rocks before intersecting the diorite intrusion. Gold mineralization was encountered in both the metasedimentary rocks and intrusion. The broad interval of 369.0 m from 76.0 m in Hole 79 contained 0.46 g/t Au, significantly above the cut-off of 0.20 g/t Au of the current Eiger MRE. Higher grade intervals included 46.0 m of 0.99 g/t from 173.8 m and 19.0 m of 1.03 g/t Au from 331.0 m.
Hole 082, steepened to -75 degrees at the same location, encountered local gold mineralization in metasedimentary rock to a final length of 431.3 m (see Table 2).
RHOSGOBEL TARGET DRILLINGTo date in 2025, 10 holes for 2,833 m have been completed at the Rhosgobel target. Assays are still pending for all the holes completed at Rhosgobel so far this year (see Company press release dated July 10, 2025 for the location of holes up to DDRCRG-25-010).
Table 2: Summary of significant assay results from this release
*Intervals are drilled core length, as insufficient drilling has been completed at this time to determine true widths
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_005full.jpg
Figure 3: Regional map of the RC Gold Project located in the western portion of Yukon's prolific Tombstone Gold Belt.
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_006full.jpg
Figure 4: A plan map of the Clear Creek Intrusive Complex (CCIC) showing the updated resource areas at Blackjack and Eiger, and the six additional areas that have drill targets indicated by the mauve hatched areas. The map highlights the numerous drill targets that Sitka has outlined within the CCIC which all are connected by the road network on the project and occur in an area measuring five (5) km north-south and twelve (12) km east-west. Additional areas highlighted by strong gold in soil anomalies are being advanced to the drill ready stage with additional geological work in 2025.
To view an enhanced version of this graphic, please visit:https://images.newsfilecorp.com/files/6144/259106_7706db08446f285a_007full.jpg
Quality Assurance/Quality ControlOn receipt from the drill site, the HTW/NTW-sized drill core was systematically logged for geological attributes, photographed and sampled at Sitka's core logging facility. Sample lengths as small as 0.3 m were used to isolate features of interest, otherwise a default 2 m downhole sample length was used. Each sample is identified by a unique sample tag number which is placed in the bag containing the core to be assayed. Core was cut in half lengthwise along a predetermined line, with one-half (same half, consistently) collected for analysis and one-half stored as a record. Standard reference materials, blanks and duplicate samples were inserted by Sitka personnel at regular intervals into the sample stream. Bagged samples were placed in secure bins to ensure integrity during transport. They were delivered by Sitka personnel or a contract expeditor to ALS Laboratories' preparatory facility in Whitehorse, Yukon, with analyses completed in North Vancouver.
ALS is accredited to ISO 17025:2005 UKAS ref. 4028 for its laboratory analysis. Samples were crushed by ALS to over 70 per cent passing below two millimetres and split using a riffle splitter. One-thousand-gram splits were pulverized to over 85 per cent passing below 75 microns. Gold determinations are by fire assay with an inductively coupled plasma mass spectroscopy (ICP-AES) finish on 50 g subsamples of the prepared pulp (ALS code: Au-ICP-22). Any sample returning over 10 g/t gold was re-analyzed by fire assay with a gravimetric finish on a 50 g subsample (ALS code: Au-GRA21). In addition, a 51-element analysis was performed on a 0.5 g subsample of the prepared pulps by an aqua regia digestion followed by an inductively coupled plasma mass spectroscopy (ICP-MS) finish (ALS code: ME-MS41).
About the flagship RC Gold ProjectSitka's 100% owned RC Gold Project consists of a 431 square kilometre contiguous district-scale land package located in the heart of Yukon's Tombstone Gold Belt. The project is located approximately 100 kilometres east of Dawson City, which has a 5,000 foot paved runway, and is accessed via a secondary gravel road from the Klondike Highway which is usable year-round and is an approximate 2 hour drive from Dawson City. It is the largest consolidated land package strategically positioned mid-way between the Eagle Gold Mine and the past producing Brewery Creek Gold Mine.
The RC Gold Project now has pit-constrained mineral resources that are contained in two zones: the Blackjack and Eiger gold deposits with 1,291,000 ounces of gold in 39,962,000 tonnes grading 1.01 g/t gold in an indicated category and 1,044,000 ounces of gold in 34,603,000 tonnes grading 0.94 g/t in an inferred category at Blackjack and 440,000 ounces of gold in 27,362,000 tonnes grading 0.50 g/t gold in an inferred category at Eiger. These resource estimate numbers are supported by the recently updated technical report for RC Gold, prepared in accordance with NI 43-101 standards, entitled "Clear Creek Property, RC Gold Project NI 43-101 Technical Report Dawson Mining District, Yukon Territory", prepared by Ronald G. Simpson, P. Geo., of GeoSim Services Inc. with an effective date of January 21, 2025. This report is available on SEDAR+ (http://www.sedarplus.ca) and on the Company's website (www.sitkagoldcorp.com).
Both of these deposits begin at surface, are potentially open pit minable and amenable to heap leaching, with initial bottle roll tests indicating that the gold is not refractory and has high gold recoveries of up to 94% with minimal NaCN consumption (see News Release July 13, 2022).
As of the end of 2024, the Company has drilled 72 diamond drill holes into this system for a total of approximately 25,136 metres. Other targets drilled to date include the Saddle, Josephine, Rhosgobel and Pukelman zones. The resource expansion drilling in 2023 at Blackjack produced results of up to 219.0 metres of 1.34 g/t gold including 124.8 metres of 2.01 g/t gold and 55.0 metres of 3.11 g/t gold in drill hole DDRCCC-23-047 (see news release dated September 26, 2023) and in 2024 results of up to 678.1 metres of 1.04 g/t gold starting from surface in DDRCCC-24-068, including 409.5 metres of 1.36 g/t gold, 93.0 metres of 2.57 g/t gold and 5.5 metres of 17.59 g/t gold (see news release dated October 21, 2024). Results from DDRCCC-25-075, completed during winter drilling in 2025, produced the best high-grade intercepts drilled to date at Blackjack, returning 352.8 metres of 1.55 g/t gold including 108.9 metres of 3.27 g/t gold and 45.0 metres of 4.52 g/t gold (see news release dated April 22, 2025).
A planned 30,000 metre diamond drilling program for 2025 is currently underway at RC Gold.
RC Gold Deposit ModelExploration on the Property has mainly focused on identifying an intrusion-related gold system ("IRGS"). The property is within the Tombstone Gold Belt which is the prominent host to IRGS deposits within the Tintina Gold Province in Yukon and Alaska. Notable deposits from the belt include: Fort Knox Mine in Alaska with current Proven and Probable Reserves of 230 million tonnes at 0.3 g/t Au (2.471 million ounces; Sims 2018)(1); Eagle Gold Mine with current Measured and Indicated Resources of 233 million tonnes at a grade of 0.57 g/t Au at the Eagle Main Zone (4.303 million ounces; Harvey et al, 2022)(2); the Brewery Creek deposit with current Indicated Mineral Resource of 22.2 million tonnes at a gold grade of 1.11 g/t (0.789 million ounces; Hulse et al. 2020)(3); the AurMac Project with an Inferred Mineral Resource of 347.49 million tonnes grading 0.63 gram per tonne gold (7.00 million ounces)(4) and the Valley Deposit, with a current Measured and Indicated Mineral Resource of 7.94 million oz gold at 1.21 g/t and an additional Inferred Mineral Resource of 0.89 million oz at 0.62 g/t gold(5), and the Raven deposit with an inferred mineral resource of 1.1 million oz (19.96 million tonnes at 1.67 g/t gold)(6).
(1) Sims J. Fort Knox Mine Fairbanks North Star Borough, Alaska, USA National Instrument 43-101 Technical Report. June 11, 2018. https://s2.q4cdn.com/496390694/files/doc_downloads/2018/Fort-Knox-June-2018-Technical-Report.pdf
(2) Harvey N., Gray P., Winterton J., Jutras M., Levy M.,Technical Report for the Eagle Gold Mine, Yukon Territory, Canada. Victoria Gold Corp. December 31, 2022. https://vgcx.com/site/assets/files/6534/vgcx_-_2023_eagle_mine_technical_report_final.pdf
(3) Hulse D, Emanuel C, Cook C. NI 43-101 Technical Report on Mineral Resources. Gustavson Associates. May 31, 2020. https://minedocs.com/22/Brewery-Creek-PEA-01182022.pdf
(4) Thornton T., Jutras M., Malhotra D. Technical Report Aurmac Property Mayo Mining District, Yukon Territory, Canada. JDS Energy and Mining Inc. February 6, 2024. https://banyangold.com/site/assets/files/5251/banyan_gold_ni_43-101_technical_report_2024_03_18.pdf
(5)https://snowlinegold.com/2025/05/15/snowline-gold-expands-measured-and-indicated-gold-ounces-by-96-in-updated-mineral-resource-estimate-at-its-valley-gold-deposit-yukon/
(6) Jutras, M. 2022. Technical Report on the Raven Mineral Deposit, Mayo Mining District Yukon Territory, Canada, prepared for Victoria Gold Corp and filed on SEDAR (www.sedar.com) with an effective date of September 15, 2022
Upcoming EventsSitka Gold will be attending and/or presenting at the following events*:
Precious Metals Summit, Beaver Creek, Colorado: September 9 - 12, 2025
Yukon Geoscience Forum, Whitehorse, YT: November 16 - 19, 2025
Swiss Mining Institute, Zürich, Switzerland: November 19 - 22, 2025
*All events are subject to change.
About Sitka Gold Corp.Sitka Gold Corp. is a well-funded mineral exploration company headquartered in Canada. The Company is managed by a team of experienced industry professionals and is focused on exploring for economically viable mineral deposits with its primary emphasis on gold, silver and copper mineral properties of merit. Sitka is currently advancing its 100% owned, 431 square kilometre flagship RC Gold Project located within the Tombstone Gold Belt in the Yukon Territory. The Company is also advancing the Alpha Gold Project in Nevada and currently has drill permits for its Burro Creek Gold and Silver Project in Arizona and the Coppermine River Project in Nunavut, all of which are 100% owned by the Company.
*For more detailed information on the Company's properties please visit our website at www.sitkagoldcorp.com.
The scientific and technical content of this news release has been reviewed and approved by Gilles Dessureau, P.Geo., V.P. Exploration of the Company, and a Qualified Person (QP) as defined by National Instrument 43-101.
ON BEHALF OF THE BOARD OF DIRECTORS OF
SITKA GOLD CORP.
"Donald Penner"
President and Director
For more information contact:
Donald Penner President & Director 778-212-1950 dpenner@sitkagoldcorp.com
or
Cor CoeCEO & Director604-817-4753ccoe@sitkagoldcorp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary and Forward-Looking StatementsThis release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking statements relate to future events or future performance and reflect the expectations or beliefs of management of the Company regarding future events. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends" or "anticipates", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "should", "would" or "occur". This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions and the Company's anticipated work programs.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These risks and uncertainties include, among other things, market uncertainty and the results of the Company's anticipated work programs.
Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/259106
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The Company implemented targeted stimulation design changes that improved the predictability and speed of the fracture operations, and most importantly, reduced the overall completion cost to $2.2 million which is over 10% below pre-job estimates. Additionally, water flowback rates from the LSC reservoir have been over 70% less than Southern's Upper Selma Chalk horizontal wells, which translates into significant initial operating cost savings of ~ $0.20/Mcfe, further improving capital returns. Southern will continue to monitor both regional natural gas pricing and well performance from the GH LSC 13-13 #2 over the upcoming months before making a decision on the completion timing of the remaining two DUC wells. Southern continues to work with Federal Energy Regulatory Commission ("FERC") staff to resolve the ongoing transportation dispute that resulted in the shut-in of approximately 400 boe/d of production from the Mechanicsburg and Greens Creek fields. Based on prescribed FERC resolution timelines, the Company expects the rate determination process to be resolved sometime in Q3 2025, at which point these production volumes will come back on-line. Outlook Southern has taken meaningful steps to strengthen its financial position in 2025, including the successful $5.0 million equity financing in April 2025, conversion of convertible debentures, and restructuring of financial covenants with lender support. These actions, combined with the early success of the GH LSC 13-13 #2 well and two additional DUCs in Gwinville, provide a clear runway for disciplined growth. The Company also continues to benefit from a fixed-price swap of 5,000 MMBtu/d at $3.40/MMBtu through December 2026, offering downside protection. With improved regional pricing and a strengthened financial foundation, Southern is well-positioned to execute its capital program and generate long-term shareholder value. Southern will continue to monitor NYMEX prices and the basis differential prices and is prepared to hedge additional volumes in a tactical manner going forward. We appreciate the continued support of our stakeholders and look forward to providing further updates on our operational progress as we work to drive long-term shareholder value. Qualified Person's Statement Gary McMurren, Chief Operating Officer, who has over 24 years of relevant experience in the oil industry, has approved the technical information contained in this announcement. Mr. McMurren is registered as a Professional Engineer with the Association of Professional Engineers and Geoscientists of Alberta and received a Bachelor of Science degree in Chemical Engineering (with distinction) from the University of Alberta. Annual Meeting of Shareholders Southern's Annual Meeting of Shareholders is to be held at the Company's offices located at Suite 2400, 333 - 7th Avenue S.W., Calgary, Alberta, T2P 2Z1, on Monday, October 27, 2025 at 10:00 a.m. (Calgary time) and by webcast via Zoom, formal notice of which is available on the Company's website and on SEDAR+ at For further information about Southern, please visit our website at or contact: Southern Energy Corp. Ian Atkinson (President and CEO) Calvin Yau (CFO) +1 587 287 5401+1 587 287 5402 Strand Hanson Limited - Nominated & Financial Adviser James Bellman / Rob Patrick / Edward Foulkes +44 (0) 20 7409 3494 Tennyson Securities - Broker Peter Krens / Jason Woollard +44 (0) 20 7186 9033 About Southern Energy Corp. Southern Energy Corp. is a natural gas exploration and production company characterized by a stable, low-decline production base, a significant low-risk drilling inventory and strategic access to premium commodity pricing in North America. Southern has a primary focus on acquiring and developing conventional natural gas and light oil resources in the southeast Gulf States of Mississippi, Louisiana, and East Texas. Our management team has a long and successful history working together and have created significant shareholder value through accretive acquisitions, optimization of existing oil and natural gas fields and the utilization of re-development strategies utilizing horizontal drilling and multi-staged fracture completion techniques. READER ADVISORIES MCFE Disclosure. Natural gas liquids volumes are recorded in barrels of oil (bbl) and are converted to a thousand cubic feet equivalent (Mcfe) using a ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Natural gas volumes recorded in thousand cubic feet (Mcf) are converted to barrels of oil equivalent (boe) using the ratio of six (6) thousand cubic feet to one (1) barrel of oil (bbl). Mcfe and boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf is based in an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. In addition, given that the value ratio based on the current price of oil as compared with natural gas is significantly different from the energy equivalent of six to one, utilizing a boe conversion ratio of 6 Mcf:1 bbl or a Mcfe conversion ratio of 1 bbl:6 Mcf may be misleading as an indication of value. Short Term Results. References in this press release to peak rates, production rates since inception, current production rates, initial 30-day productions rates and other short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determinative of the rates at which such wells will commence production and decline thereafter and are not indicative of long-term performance or of ultimate recovery. While encouraging, readers are cautioned not to place reliance on such rates in calculating the aggregate production of Southern. The Company cautions that such results should be considered to be preliminary. Unit Cost Calculation. For the purpose of calculating unit costs, natural gas volumes have been converted to a boe using six thousand cubic feet equal to one barrel unless otherwise stated. A boe conversion ratio of 6:1 is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion conforms with NI 51-101. Boe may be misleading, particularly if used in isolation. Product Types. Throughout this press release, "crude oil" or "oil" refers to light and medium crude oil product types as defined by NI 51-101. References to "NGLs" throughout this press release comprise pentane, butane, propane, and ethane, being all NGLs as defined by NI 51-101. References to "natural gas" throughout this press release refers to conventional natural gas as defined by NI 51-101. Abbreviations. Please see below for a list of abbreviations used in this press release. 1P total proved2P proved plus probablebbl barrelsbbl/d barrels per daybcf/d billion cubic feet per dayboe barrels of oilboe/d barrels of oil per dayMcf thousand cubic feet Mcf/d thousand cubic feet per dayMMcf million cubic feet MMcf/d million cubic feet per dayMcfe thousand cubic feet equivalent Mcfe/d thousand cubic feet equivalent per dayMMboe million barrels of oilMMBtu million British thermal unitsMMBtu/d million British thermal units per dayNI 51-101 National Instrument 51-101 Standards of Disclosure for Oil and Gas ActivitiesNYMEX New York Mercantile ExchangePDP proved developed producing Forward Looking Statements. Certain information included in this press release constitutes forward-looking information under applicable securities legislation. Forward-looking information typically contains statements with words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", "project", "continue", "evaluate", "forecast", "may", "will", "can", "target" "potential", "result", "could", "should" or similar words suggesting future outcomes or statements regarding an outlook (including negatives and variations thereof). Forward-looking information in this press release may include, but is not limited to statements concerning the Company's asset base including the development of the Company's assets, positioning, oil and natural gas production levels, the Company's anticipated operational results, Southern's growth strategy and the expectation that it will continue to enhance shareholder value,Southern's expectation that improved regional pricing and a strengthened financial foundation will support execution of its capital program and long-term value creation, forecasted natural gas pricing, Southern's ability to re-initiate growth in deploying the net proceeds from the equity financing on capital expenditures, drilling and completion plans, expectations regarding commodity prices and service costs, expectations regarding the performance characteristics of the Company's oil and natural gas properties, the Company's hedging strategy and execution thereof (includingits intention to continue monitoring commodity prices and basis differentials and to hedge additional volumes as deemed appropriate), the ability of the Company to achieve drilling success consistent with management's expectations,the Company's expectations regarding completion of the two remaining DUCs and the drilling operations in the Mechanicsburgand Greens Creek fields(including the timing thereof and anticipated costs and fundingas well as the evaluation of well performance and regional natural gas pricing to inform such decisions),the Company's expectations regarding the resolution of regulatory disputes (including the anticipated timing thereof) and impact of FERC rate determinations on shut-in production volumes, the expected contribution of the GH LSC 13-13 #2 well to Q3 2025 cash flow, the Company's ability to realize sustained pricing premiums due to its strategic location in the Southeast U.S., the effect of market conditions on the Company's performance and expectations regarding the use of proceeds from all sources including the senior term loan. Statements relating to "reserves" and "recovery" are also deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the reserves described exist in the quantities predicted or estimated and that the reserves can be profitably produced in the future. The forward-looking statements contained in this press release are based on certain key expectations and assumptions made by Southern, including, but not limited to, the timing of and success of future drilling, development and completion activities, the performance of existing wells, the performance of new wells, the availability and performance of drilling rigs, facilities and pipelines, the geological characteristics of Southern's properties, the characteristics of the Company's assets, the Company's ability to comply with ongoing obligations under the senior term loan and other sources of financing, the successful application of drilling, completion and seismic technology, the benefits of current commodity pricing hedging arrangements, Southern's ability to enter into future derivative contracts on acceptable terms, Southern's ability to secure financing on acceptable terms, prevailing weather conditions, prevailing legislation, as well as regulatory and licensing requirements, affecting the oil and gas industry, the Company's ability to obtain all requisite permits and licences, prevailing commodity prices, price volatility, price differentials and the actual prices received for the Company's products, royalty regimes and exchange rates, the impact of inflation on costs, the application of regulatory and licensing requirements, the Company's ability to obtain all requisite permits and licences, the availability of capital, labour and services, the creditworthiness of industry partners, the Company's ability to source and complete asset acquisitions, and the Company's ability to execute its plans and strategies. Although Southern believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Southern can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, risks associated with the oil and gas industry in general (e.g., operational risks in development, exploration and production, the uncertainty of reserve estimates, the uncertainty of estimates and projections relating to production, costs and expenses, regulatory risks, and health, safety and environmental risks), constraint in the availability of labour, supplies, or services, the impact of pandemics, commodity price and exchange rate fluctuations, geo-political risks, political and economic instability, the imposition or expansion of tariffs imposed by domestic and foreign governments or the imposition of other restrictive trade measures, retaliatory or countermeasures implemented by such governments, including the introduction of regulatory barriers to trade and the potential effect on the demand and/or market price for the Company's products and/or otherwise adversely affects the Company, wars (including the Russo-Ukrainian war and the Israel-Hamas conflict), hostilities, civil insurrections, inflationary risks including potential increases to operating and capital costs, changes in legislation impacting the oil and gas industry, including but not limited to tax laws, royalties and environmental regulations (including greenhouse gas emission reduction requirements and other decarbonization or social policies and including uncertainty with respect to the interpretation of omnibus Bill C-59 and the related amendments to the Competition Act (Canada)), the Company's ability to meet its financial obligations and covenants, adverse weather or break-up conditions, and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures. These and other risks are set out in more detail in Southern's latest Management Discussion and Analysis for the period ended June 30, 2025 and the Company's annual information form for the year ended December 31, 2024, which are available on the Company's website at and filed under the Company's profile on SEDAR+ at The forward-looking information contained in this press release is made as of the date hereof and Southern undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Future Oriented Financial Information. This press release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about Southern's capital expenditures, general and administrative expenses, hedging, natural gas pricing and prospective results of operations and production, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. FOFI contained in this document was approved by management as of the date of this document and was provided for the purpose of providing further information about Southern's future business operations. Southern and its management believe that FOFI has been prepared on a reasonable basis, reflecting management's best estimates and judgments, and represent, to the best of management's knowledge and opinion, the Company's expected course of action. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results. Southern disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein. Changes in forecast commodity prices, differences in the timing of capital expenditures, and variances in average production estimates can have a significant impact on the key performance measures included in Southern's guidance. The Company's actual results may differ materially from these estimates. Specified Financial Measures. This press release provides various financial measures that do not have a standardized meaning prescribed by International Financial Reporting Standards ("IFRS"), including non-IFRS financial measures, non-IFRS financial ratios and capital management measures. These specified financial measures may not be comparable to similar measures presented by other issuers. Southern's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Adjusted Funds Flow from Operations, adjusted working capital and net debt are not recognized measures under IFRS. Readers are cautioned that these specified financial measures should not be construed as alternatives to other measures of financial performance calculated in accordance with IFRS. These specified financial measures provide additional information that management believes is meaningful in describing the Company's operational performance, liquidity and capacity to fund capital expenditures and other activities. Please see below for a brief overview of all specified financial measures used in this release and refer to the Company's MD&A for additional information relating to specified financial measures, which is available on the Company's website at and filed under the Company's profile on SEDAR+ at "Adjusted Funds Flow from Operations" (non-IFRS financial measure) is calculated based on cash flow from operative activities before changes in non-cash working capital and cash decommissioning expenditures. Management uses adjusted funds flow from operations as a key measure to assess the ability of the Company to finance operating activities, capital expenditures and debt repayments. "Adjusted Funds Flow from Operations per Share" (non-IFRS financial measure) is calculated by dividing Adjusted Funds Flow from Operations by the number of Southern shares issued and outstanding. "Net Debt" (capital management measure) is monitored by management, along with adjusted working capital, as part of its capital structure in order to fund current operations and future growth of the Company. Net debt is defined as long-term debt plus adjusted working capital surplus or deficit. Adjusted working capital is calculated as current assets less current liabilities, removing current derivative assets/liabilities, the current portion of bank debt, the warrant liability, and the current portion of lease liabilities. Neither the 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. [1] Comprised of 23 bbl/d light and medium crude oil, 43 bbl/d of condensate, 5 bbl/d NGLs and 10,869 Mcf/d conventional natural gas [2] See "Reader Advisories - Specified Financial Measures" SOURCE: Southern Energy Corp. 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