Southern Empire Resources Corp. announced that a preliminary investigation to determine the availability and source characteristics of groundwater needed to support future exploration and development of its Oro Cruz Project in southeastern California demonstrates: A groundwater production well (or wells) installed in the alluvial fans on the west side of the Cargo Muchacho Mountains is likely to provide abundant groundwater to meet anticipated demands. Continued field exploration and groundwater test wells will be needed to confirm the volumes and flow rates of available groundwater.

Groundwater isotope characterization records completed previously and interpreted as part of Southern Empire's investigation, demonstrate that alluvial groundwater recharge in the vicinity of the Oro Cruz Project is from meteoric water and is not sourced from Colorado River waters, implying that there should be no concerns of future Oro Cruz Project groundwater wells impacting local Colorado River surface water accounting.