Mr. Brian Robertson reports

SOURCE EXPLORATION ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UP TO $800,000

Source Exploration Corp. has arranged a non-brokered private placement of up to 10 million units of the company at a price of eight cents per unit for gross proceeds of up to $800,000. Each unit will consist of one common share of the company and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share of the company for a period of 24 months from the closing date of the private placement (subject to early expiry) at a price of eight cents per common share.

The proceeds from the private placement will be used to continue exploration on the company's Las Minas project, located in the state of Veracruz, Mexico, and for general working capital purposes.

In connection with the private placement, certain arm's-length parties may receive: (i) a cash finders' fee payment equal to 6 per cent of the gross proceeds of the units that are sold to subscribers introduced by such parties and (ii) warrants to purchase that number of common shares of the company equal to 6 per cent of the units that are sold to subscribers introduced by such parties, with the finder warrants having the same terms as the warrants. The finders' fee payment and the finder warrants are subject to the approval of, and will be issued in accordance with, the rules of the TSX Venture Exchange. Pursuant to the terms of the warrants, the company will have the right to accelerate the expiry date of the warrants on notice to the warrantholders if the closing price of its common shares on a stock exchange in Canada is higher than 10 cents per common share for a period of 10 consecutive trading days after four months and one day from the closing date of the private placement, in which case the warrants will expire 30 days after the date on which such notice is given.

The units to be issued under this private placement will be offered in the provinces of Ontario and British Columbia and such other provinces of Canada as may be determined by the company, in each case, pursuant to applicable exemptions from the prospectus requirements under applicable securities laws. Closing of the private placement is anticipated to occur on or before Feb. 6, 2015, and is subject to receipt of all required regulatory approvals, including the approval of the TSX-V. Units issued under the private placement will be subject to a four-month hold period, which will expire four months and one day from the date of closing of the private placement.

We seek Safe Harbor.