Payment Of Interest In-kind

SUBORDINATED DEBENTURES

Calgary, Alberta - December 27, 2023 - Southern Energy Corp. ("Southern" or the "Company") (SOU: TSXV) (AIM:SOUC) (OTCQX:SOUTF) announces that the Company has agreed to issue, in aggregate, 779,273 new common shares of Southern (the "Common Shares") to holders of its 8% convertible unsecured subordinated debentures issued on June 14, 2019 and January 15, 2021 (collectively, the "Debentures") as payment in kind of accrued interest on the Debentures due on December 31, 2023 in the aggregate amount of CAD$171,440 (the "Interest Payment"). The number of new Common Shares to be issued is equal to the amount of the interest, divided by the volume weighted average trading price per Common Share for the 20 consecutive trading days ending on the fifth trading day preceding December 31, 2023, being CAD$0.22 per Common Share. Southern gave notice to Computershare Trust Company of Canada, as debenture trustee, effective December 31, 2023, that it exercised its right to make the Interest Payment by issuing Common Shares.

Director/PDMR Participation

It is noted that certain Directors and PDMRs of the Company hold Convertible Debentures, on the same terms as all other participants, and, accordingly, were issued, in aggregate, 9,455 Common Shares were issued. Further details regarding individual participation of the Company's Directors and PDMRs is set out in the PDMR notification forms below.

Admission and Total Voting Rights

The new Common Shares issued in respect of the Interest Payment will be credited as fully paid, rank pari passu in all respects with the existing Common Shares, and are expected to be admitted to trading on AIM on or around 8.00 a.m. (GMT) on or around 3 January 2024 ("Admission").

Following Admission, the total number of Common Shares in the Company in issue will be 166,497,433, and 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 to their interest in, the Company.

Southern Energy Corp.

Ian Atkinson (President & CEO) +1 587 287 5401

Calvin Yau (CFO) +1 587 287 5402

Strand Hanson Limited - Nominated & Financial Adviser

James Spinney / James Bellman +44 (0) 20 7409 3494

Stifel Nicolaus Europe Limited - Joint Broker

Callum Stewart / Ashton Clanfield +44 (0) 20 7710 7600

Tennyson Securities - Joint Broker

Peter Krens / Pav Sanghera +44 (0) 20 7186 9033

Camarco

Owen Roberts / Billy Clegg / Hugo Liddy +44 (0) 20 3757 4980

About Southern Energy Corp.

READER ADVISORY