Results Of Fundraising

Calgary, Alberta - 2 November 2023 - Southern Energy Corp. ("Southern" or the "Company") (TSXV:SOU) (AIM:SOUC) (OTCQX:SOUTF), a U.S.-focused, growth-oriented natural gas producer, is pleased to announce the results of the conditional Fundraising announced on 1 November 2023.

Pursuant to the Fundraising, a total of 26,630,000 new Common Shares (the "Fundraising Shares") have been conditionally placed with new and existing investors at a price of 15.5 pence (the "Placing Price") or C$0.26 (the "Prospectus Price") per new Common Share, raising aggregate gross proceeds of US$5.0 million (£4.1 million, C$6.9 million). The net proceeds from the Fundraising will be used alongside existing cash, cash flows and undrawn debt facilities to fund the completion of the up to four drilled and uncompleted ("DUC") wells at a cost of approximately US$3 million per well.

The Fundraising Shares will consist of 14,863,097 Placing Shares, 11,702,387 Prospectus Shares and 64,516 Subscription Shares conditionally placed at the Placing Price and Prospectus Price as appropriate, representing gross proceeds of US$2.8 million (£2.3 million, C$3.9 million), US$2.2 million (£1.8 million, C$3.0 million), and US$0.01 million (£0.01 million, C$0.02 million), respectively.

The total Fundraising Shares will represent approximately 16.1 per cent. of the Company's enlarged share capital post-completion of the Fundraising. The Placing Price represents a 16.2 per cent. discount to the closing price on 1 November 2023 on AIM, being the last practicable closing price prior to the announcement of the Fundraising.

Stifel Nicolaus Europe Limited ("Stifel Europe") and Tennyson Securities, a trading name of Shard Capital Partners LLP ("Tennyson Securities") acted as joint bookrunners (the "Joint Bookrunners") in connection with the Placing. Stifel Nicolaus Canada Inc. ("Stifel Canada") is acting as lead agent and bookrunner, with Canaccord Genuity Corp, Eight Capital, and Haywood Securities Inc as agents, in connection with the Prospectus Offering.

Participation by PDMRs

Certain persons discharging managerial responsibilities (PDMRs) of the Company have participating in the Fundraising via the Subscription and Prospectus Offering, acquiring a total of 746,055 new Common Shares representing gross proceeds of US$0.14 million (£0.12 million, C$0.19 million). The FCA notifications, made in accordance with the requirements of the MAR, are appended below.

Ian Atkinson, President and CEO of Southern, commented:

"I am pleased to announce the successful Fundraising today that will allow us to accelerate the completion of Southern's four drilled and uncompleted wells in Gwinville in an increasingly positive macro gas price environment. The accelerated completion of the four wells is anticipated to provide significant production growth and cash flow to the business and we look forward to getting to work to bring these wells on to production."

"I would like to thank all of the shareholders who have continued to support the Company in this Fundraising, and welcome new investors onto the register at what we expect to be an exciting time for the business, supported by the increasing structural imbalance in U.S. natural gas."

Capitalised terms not otherwise defined in the text of this announcement have the meanings given in the Company's announcement dated 1 November 2023.

Settlement of the Fundraising Shares and Application for Admission

Application will be made to the London Stock Exchange for the Fundraising Shares to be admitted to trading on AIM and to the TSXV for the Fundraising Shares to be admitted to trading on the TSXV. The Prospectus Offering is expected to close on or about 9 November 2023, subject to customary closing conditions, including the approval of the TSXV. It is currently expected that admission will become effective, and that dealings in the Fundraising Shares will commence on AIM, at 8.00 a.m. (GMT) and on the TSXV at 9:30 a.m. (ET) on or around 9 November 2023.

The Fundraising Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with the existing Common Shares of the Company, including the right to receive all dividends and other distributions thereafter declared, made or paid on the enlarged share capital from admission.

Total Voting Rights

Following the admission of the Fundraising Shares, Southern's total issued share capital will consist of 165,718,160 Common Shares. The Company does not hold any Common Shares in Treasury. Therefore, this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in interest in, the share capital of the Company under the Disclosure Guidance and Transparency Rules of the FCA.

PDMR Disclosures