Payment Of Interest In-kind

SUBORDINATED DEBENTURES AND VOLUNTARY DELISTING FROM OTCQX

Calgary, Alberta - December 31, 2024 - Southern Energy Corp. ("Southern" or the "Company") (SOU: TSXV) (AIM:SOUC) announces that the Company has agreed to issue, in aggregate, 2,143,000 new common shares in Southern (the "Common Shares") to holders of its 10% 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, 2024 in the aggregate amount of CAD$214,300 (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 on the TSX-V preceding December 31, 2024, being CAD$0.10 per Common Share. Southern gave notice to Computershare Trust Company of Canada, as debenture trustee, effective December 31, 2024, 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 Debentures, on the same terms as all other participants, and, accordingly, will be issued, in aggregate, 26,000 new Common Shares. 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

Application has been made to the London Stock Exchange plc for the admission of the 2,143,000 new Common Shares to trading on AIM, which is expected to occur at 8.00 a.m. (GMT) on or around 3 January 2025 ("Admission"). The new Common Shares will rank pari passu with the existing Common Shares.

Following Admission, the total number of Common Shares in the Company in issue will be 169,385,824, 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.

The settlement of the Interest Payment through the issuance of Common Shares remains subject to final acceptance of the TSX Venture Exchange.

Voluntary Delisting from OTCQX

The Common Shares of the Company will be voluntarily delisted from the OTCQX effective the close of market January 13, 2025. The Common Shares will continue to trade on the TSX Venture Exchange under the symbol SOU and on the AIM Market of the London Stock Exchange under the symbol SOUC. United States based investors and shareholders will still be able to trade the Company's stock on the OTC Pink trading platform. All shareholders will continue to be able to access Company information filed on SEDAR+ at www.sedarplus.ca and placed on the Company website at www.southernenergycorp.com.

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 / Rob Patrick +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 / Sam Morris / Tomisin Ibikunle +44 (0) 20 3757 4980

About Southern Energy Corp.

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