Mr. Brad Docherty reports

SOURCE ROCK ROYALTIES ANNOUNCES 2025 ANNUAL & FOURTH QUARTER ROYALTY PRODUCTION & REVENUE AND SALE OF CROWN MINERAL LEASES

Source Rock Royalties Ltd. is providing unaudited operational and financial highlights for fiscal 2025 and the fourth quarter of 2025, and the sale of certain Crown mineral leases for cash proceeds and a gross overriding royalty (GORR).

Unaudited annual results for fiscal 2025 were:

• Royalty production -- 230 barrels of oil equivalent per day (92 per cent oil and natural gas liquids (NGLs)), a decrease of 8 per cent compared with 2024;

• Royalty revenue -- $6.03-million, a decrease of 22 per cent compared with 2024.

Unaudited results for Q4 2025 were:

• Royalty production -- 226 boe/d (91 per cent oil and NGLs), a decrease of 12 per cent compared with Q4 2024;

• Royalty revenue -- $1.33 million, a decrease of 29 per cent compared with Q4 2024.

Audited annual and Q4 2025 financial statements and management's discussion and analysis, as well as oil and gas reserves information as of Dec. 31, 2025, will be filed on SEDAR+ and announced by news release on or before April 30, 2026.

Sale of Crown mineral leases

Source Rock also announces the sale of two sections of oil sands leases in Alberta to a top-tier intermediate operator with industry leading expertise in drilling multilateral heavy-oil wells.

Source Rock acquired its 50-per-cent interest in the lands for $110,000. Pursuant to the sale of the lands, Source Rock has received $225,000 for its interest and has retained a 1.75-per-cent GORR in 100 per cent of production from the lands.

Following the sale of the lands and including the recent acquisition of an additional three sections of oil sands leases, Source Rock continues to own a 50-per-cent interest in 32 sections (20,480 acres) of oil sands and petroleum and natural gas leases in Alberta.

President's message

QUOTE

Twenty twenty-five was another strong year for Source Rock as a result of consistent drilling activity on our royalty lands. In total, 33 new horizontal wells began producing on our royalty lands: 13 Frobisher wells and 1 Midale well in S.E. Saskatchewan, 13 Clearwater wells in central Alberta, 5 Viking wells in west-central Saskatchewan and 1 Dina well in east-central Alberta. Prior to the recent rise in oil prices, we observed the pace of drilling activity on our royalty lands slow materially in the second half of 2025 and early in 2026, as WTI oil prices remained below $70 USD for an extended period of time. We are unsure whether the current events driven increase in oil prices will result in renewed near-term drilling activity.

We are very pleased to complete the first transaction with respect to our Crown mineral leases. It is particularly exciting to partner with such a high-quality operator that we are confident will maximize the potential of the lands, which we are retaining a GORR in. Efficiently achieving 'proof of concept' for our new organic royalty creation strategy has not only provided us with a return on our initial investment (105 per cent in 6 months) but it has also illustrated how our leasing activity can grow our portfolio of oil royalties through transactions with well-capitalized and proven operators. We are actively engaging with our industry relationships in an effort to generate additional transactions with respect to our Crown mineral leases. We also continue to evaluate and pursue the acquisition of additional Crown mineral leases.

We are also actively evaluating additional producing oil royalty acquisitions with the goal of using our cash balance to expand our base production and diversify our exposure to undeveloped land and future potential drilling locations.

UNQUOTE

About Source Rock Royalties Ltd.

Source Rock is a pure-play oil and gas royalty company with an existing oil-focused portfolio of royalty interests concentrated in southeast Saskatchewan, central Alberta and west-central Saskatchewan, as well as ownership in oil sands, and petroleum and natural gas leases in Alberta. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends.

We seek Safe Harbor.