Mr. Scott Melbourn reports

SOURCE ENERGY SERVICES ANNOUNCES TSX APPROVAL OF AMENDED NORMAL COURSE ISSUER BID

The Toronto Stock Exchange has accepted Source Energy Services Ltd.'s application to amend its previously approved normal course issuer bid to purchase up to 1,189,458 of its outstanding common shares for cancellation through the facilities of the TSX. The number of common shares authorized for purchase represents 10 per cent of Source's public float as of April 30, 2025, as calculated pursuant to TSX rules. Under the amended NCIB, Source is permitted to purchase up to $15.6-million of its common shares, subject to the maximum of 1,189,458 common shares, including 392,900 common shares purchased prior to the amendment of the NCIB. The amended NCIB will terminate on May 12, 2026, and allows for a further 796,558 common shares to be purchased for cancellation. 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 and is unchanged from the previously approved NCIB. Source may also make one block purchase per calendar week which exceeds the daily repurchase restriction.

Under Source's NCIB as previously approved, as of Oct. 6, 2025, Source's broker under the NCIB had purchased 392,900 common shares at an average price of $12.598 pursuant to the terms and conditions of an automatic securities purchase plan.

In connection with such amendments, Source intends to enter into an amended and restated automatic securities purchase plan with a designated broker 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 A&R 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 the designated broker in its sole discretion, without consultation with Source, having regard to the price limitations and other terms of the A&R ASPP and the rules of the TSX. Outside of the blackout periods, common shares may be purchased by the designated broker 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 A&R 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 repurchased 392,900 common shares pursuant to its previously approved NCIB.

About Source Energy Services Ltd.

Source Energy Services is a company that focuses on the integrated production and distribution of frack 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 frack 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 frack sand and other bulk completion materials at the well site.

We seek Safe Harbor.