Southern Cross Gold Announces First Cut Fired at Sunday Creek Exploration Decline Portal

Vancouver, British Columbia and Melbourne, Australia--(Newsfile Corp. - June 29, 2026) - Southern Cross Gold Consolidated Ltd (TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF) (FSE: MV3) ("SXGC", "SX2" or the "Company") advises that PYBAR Mining Services Pty Ltd ("PYBAR"), a Thiess company, has fired the first cut in the exploration decline (or tunnel) portal at the Company's Sunday Creek Gold-Antimony Project, 60 kilometres north of Melbourne, Victoria.

This is the first new decline to be developed in the State of Victoria in approximately 20 years. The milestone follows the Resources Victoria Work Plan approval received in November 2025 and Premier Jacinta Allan's public endorsement of the project as a critical minerals jobs opportunity for Victoria.

High Level Takeaways: 

• First Cut Fired. The first development blast was fired in the exploration decline portal at Sunday Creek, Victoria. This is the first new decline developed in Victoria in approximately 20 years. 

• Industry Milestone. This is a landmark moment for the Victorian mining sector and a rare career opportunity for the teams involved. Firing of the first cut marks the start of underground development of the exploration decline at Sunday Creek. 

• Exploration Decline Progress. Box cut earthworks and ground support are complete, the portal is being established and the development jumbo is commencing driving the primary exploration decline. 

• Drilling Acceleration. Once completed by year end, the decline will allow the current 11 surface rigs to be expanded to 24 surface and underground rigs, positioning Sunday Creek as one of the largest pre-development drill-outs globally. 

• Future. The decline development supports the ongoing advancement of a project we believe has the potential to become a significant western world supplier of antimony and gold. 

Michael Hudson, President & CEO states: "The Victorian Government approved our exploration decline on 27 November 2025. In the months since, we have established the surface infrastructure, the box cut, and we have now fired the first cut underground. This is the first new decline developed in Victoria in around 20 years, and a proud moment for everyone involved.

"The firing of the first cut went as planned and was executed safely. Beyond this being a significant milestone for Sunday Creek, it is a significant milestone for the broader Victorian mining industry. Many people in our sector never get the opportunity to be part of something like this in their career, and I want to thank the PYBAR and SXGC teams onsite who made it happen.

"The decline is fundamentally about accelerating drilling. From here, the team will drive the primary decline to establish underground drill platforms approximately 115 metres beneath surface, scaling us from the 11 surface rigs operating today towards 24 rigs working concurrently, and positioning Sunday Creek as one of the largest pre-development drill-outs globally."

Figure 1. Exploration decline portal, face markup prior to firing.

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Figure 2. Bogging the first cut from the decline portal.

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Figure 3. Scaling the first cut at the portal face.

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Figure 4. Boxcut and the portal face.

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PYBAR comment. James Glover, General Manager of PYBAR Mining Services, who attended site for the firing, said: "It was a pleasure to spend time onsite with the respective team members for the firing of the first cut in the exploration decline. All went well and as planned. The firing of the first cut is a significant milestone for the project, but also more broadly for the mining industry, with this being the first new underground decline developed in Victoria in the last 20 or so years. Many people in the sector never get the opportunity to be involved in something like this in their career. The PYBAR team are very excited and proud to be a part of it."

First Cut Fired and Decline Underway

PYBAR fired the first development cut in the exploration decline portal, marking the commencement of underground development at Sunday Creek. Surface preparation works are complete, including the box cut of approximately 15 metres depth, ground support installation including fibrecrete of the exposed faces. With the portal establishment, the development jumbo can commence driving the primary 5.5 m wide x 6 m high decline, with bogging, scaling and ground support of the first cut undertaken as part of the standard development cycle. The decline will extend approximately 680 metres in lateral development to reach a vertical depth of approximately 115 metres, including approximately 1,200 metres of development in total to establish the underground drilling platforms (Figure 5). The decline is targeted for completion by year end. PYBAR was awarded the decline contract in May 2026 following a competitive tender process assessing technical capability, safety record, delivery schedule and price.

The decline is being built to accelerate exploration drilling. Establishing underground drill platforms unlocks the scale-up from the 11 surface rigs operating today to 24 rigs working concurrently, positioning Sunday Creek as one of the largest pre-development drill-outs globally. Underground drilling delivers shorter, more accurate holes into mineralization, materially improves productivity per metre and reduces surface impacts.

A milestone for the Victorian mining sector

The firing of the first cut is the first new underground decline developed in Victoria in approximately 20 years. It represents both a significant milestone for the Sunday Creek project and a broader milestone for the Victorian mining industry, which has not seen new underground development of this kind for two decades. The Company acknowledges the PYBAR and SXGC site teams whose planning and execution delivered the firing safely and on schedule.

Next steps. With the portal established and the first cut fired, the development team will continue to advance the primary decline towards a vertical depth of approximately 115 metres, followed by lateral development to establish the initial underground drilling platforms with first rigs underground expected to be mobilised in October. The decline remains targeted for completion by year end, after which underground drilling can commence to support the planned scale-up in drilling capacity at Sunday Creek.

Further Information

Further discussion and analysis of the Sunday Creek project is available through the interactive Vrify 3D animations, presentations and videos all available on the SXGC website. These data, along with an interview on these results with President & CEO/Managing Director Michael Hudson can be viewed at www.southerncrossgold.com.

Critical Metal Epizonal Gold-Antimony Deposits

Sunday Creek (Figure 6) is an epizonal gold-antimony deposit formed in the late Devonian (like Fosterville, Costerfield and Redcastle), 60 million years later than mesozonal gold systems formed in Victoria (for example Ballarat and Bendigo). Epizonal deposits are a form of orogenic gold deposit classified according to their depth of formation: epizonal (<6 km), mesozonal (6 km to 12 km) and hypozonal (>12 km).

Epizonal deposits in Victoria often have associated high levels of the critical metal, antimony, and Sunday Creek is no exception. China, Russia and Tajikistan together account for over 90% of global antimony mine production, with China alone supplying roughly half. China's dominance is greater still in processing, controlling an estimated 80% of global antimony refining capacity. Antimony features highly on the critical minerals lists of many countries including Australia, the United States of America, Canada, Japan and the European Union. Australia ranks seventh for antimony production despite all production coming from a single mine at Costerfield in Victoria, located nearby to all SXGC projects. Antimony alloys with lead and tin which results in improved properties for solders, munitions, bearings and batteries. Antimony is a prominent additive for halogen-containing flame retardants. Adequate supplies of antimony are critical to the world's energy transition, and to the high-tech industry, especially the semi-conductor and defence sectors where it is a critical additive to primers in munitions.

Antimony represents approximately 21% to 24% in situ recoverable value of Sunday Creek at an AuEq of 2.39 ratio.

About Southern Cross Gold Consolidated Limited (TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF) (FSE: MV3)

Southern Cross Gold Consolidated Ltd. (TSX: SXGC) (ASX: SX2) (OTCQX: SXGCF), is defining a leading gold-antimony project at the Sunday Creek Gold-Antimony Project, located 60 km north of Melbourne. Sunday Creek is a significant gold and antimony drill discovery in a Tier 1 location, with high-grade drill results including 85 composite intersections exceeding 100 g/t Au from 119.6 km of drilling. The mineralization follows a "Golden Ladder" structure over 12 km of strike length, with structures tested from surface to 1,100 m depth.

Sunday Creek's strategic value is enhanced by its dual-metal profile. The Company has a critical mineral the Western world needs. This has gained increased significance following China's export restrictions on antimony, a critical metal for defence and semiconductor applications. Southern Cross' inclusion in the US Defense Industrial Base Consortium (DIBC) and Australia's AUKUS-related legislative changes position it as a potential key Western antimony supplier.

Technical fundamentals further strengthen the investment case, with preliminary metallurgical work showing non-refractory mineralization suitable for conventional processing and gold recoveries of 93% to 98% through gravity and flotation.

With a strong cash position, 1,392 Ha of strategic freehold land ownership, and a large 200 km drill program planned through Q1 2027, SXGC is well-positioned to advance this globally significant gold-antimony discovery in a tier-one jurisdiction, delivering milestone by milestone.

- Ends -

For ASX Compliance: This announcement has been approved for release by the Board of Southern Cross Gold Consolidated Ltd.

Forward-Looking Statement

This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and assumptions and accordingly, actual results and future events could differ materially from those expressed or implied in such statements. You are hence cautioned not to place undue reliance on forward-looking statements. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements include words or expressions such as "proposed", "will", "subject to", "near future", "in the event", "would", "expect", "prepared to" and other similar words or expressions. Factors that could cause future results or events to differ materially from current expectations expressed or implied by the forward-looking statements include general business, economic, competitive, political, social uncertainties; the state of capital markets, unforeseen events, developments, or factors causing any of the expectations, assumptions, and other factors ultimately being inaccurate or irrelevant; and other risks described in the Company's documents filed with Canadian or Australian (under code SX2) securities regulatory authorities. You can find further information with respect to these and other risks in filings made by the Company with the securities regulatory authorities in Canada or Australia (under code SX2), as applicable, and available for the Company in Canada at www.sedarplus.ca or in Australia at www.asx.com.au (under code SX2). Documents are also available at www.southerncrossgold.com. The Company disclaims any obligation to update or revise these forward-looking statements, except as required by applicable law.

Figure 5: Sunday Creek exploration decline shown in plan view (left, 200 m scale) and isometric view (right, 250 m scale; plunge +20°, azimuth 025°). The decline (black) extends from the boxcut and delivers underground drill access to the mineralised structures (red) across the Christina, Golden Dyke, Rising Sun and Apollo prospects. Blue lines show conceptual underground drill holes the decline will enable.

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Figure 6: Location of the Sunday Creek project, along with the 100% owned Redcastle Gold-Antimony Project

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303231