Mr. Scott Melbourn reports

SOURCE ENERGY SERVICES ANNOUNCES NORMAL COURSE ISSUER BID

The Toronto Stock Exchange (TSX) has accepted Source Energy Services Ltd.'s notice of intention to implement a normal course issuer bid (NCIB).

As of April 30, 2025, there were 13,545,055 common shares outstanding; however, pursuant to Source's term loan agreement due Dec. 20, 2029, Source is planning to acquire under the NCIB the lesser of $5-million worth of its common shares or 750,000 common shares. The average daily trading volume (ADTV) of Source's common shares for the six months ended April 30, 2025, was 29,156 common shares. Accordingly, pursuant to the rules of the TSX, the maximum number of common shares that the company may repurchase in any one day is 25 per cent of the ADTV, which totals 7,289 common shares. Source may also make one block purchase per calendar week which exceeds the daily repurchase restriction.

The NCIB will commence on May 13, 2025, and will terminate on the earlier of: (i) May 12, 2026; or (ii) the date on which the maximum number of common shares are purchased pursuant to NCIB, being the lesser of $5-million of common shares or 750,000 common shares. Purchases of common shares under the NCIB will be effected through the facilities of the TSX or Canadian alternative trading systems at the prevailing market price at the time of purchase. Common shares purchased pursuant to the NCIB will thereafter be cancelled.

The company intends to enter into an automatic securities purchase plan (ASPP) with Acumen Capital Finance Partners Ltd., whereby common shares may be repurchased at times when such purchases would otherwise be prohibited pursuant to regulatory restrictions or self-imposed blackouts. Pursuant to the ASPP, the timing for the purchase of common shares during the blackout periods, the number of common shares purchased and the price payable for the common shares will be determined by Acumen in its sole discretion, without consultation with Source, having regard to the price limitations and other terms of the ASPP and the rules of the TSX. Outside of the blackout periods, common shares may be purchased by Acumen under the NCIB based on management's discretion, in compliance with the rules of the TSX and applicable securities laws. All purchases made under the ASPP will be included in computing the number of common shares purchased under the NCIB.

Source's board of directors and management believe that the market price of Source's common shares do not reflect their underlying value. Accordingly, the NCIB allows Source to allocate capital in a manner that reduces its issued and outstanding common shares and thereby enhances shareholder value.

The decisions regarding the timing and size of purchases under the NCIB are subject to management's discretion and will be based on various factors, including the company's liquidity position, the company's financial and operational performance, alternative uses of capital, the trading price of the common shares and general market conditions. The NCIB does not obligate Source to acquire a specific dollar amount or number of shares and may be modified or discontinued at any time. Source has not repurchased any of its outstanding common shares under a normal course issuer bid in the past 12 months.

About Source Energy Services Ltd.

Source Energy Services is a company that focuses on the integrated production and distribution of frac sand, as well as the distribution of other bulk completion materials not produced by Source. Source provides its customers with an end-to-end solution for frac sand supported by its Wisconsin and Peace River mines and processing facilities, its Western Canadian terminal network and its last-mile logistics capabilities, including its trucking operations, and Sahara, a proprietary well site mobile sand storage and handling system.

Source's full-service approach allows customers to rely on its logistics platform to increase reliability of supply, and to ensure the timely delivery of frac sand and other bulk completion materials at the well site.

We seek Safe Harbor.