Source Exploration Closes Non-Brokered Private Placement

SOURCE EXPLORATION CLOSES NON-BROKERED PRIVATE PLACEMENT

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION

IN THE UNITED STATES

March 3, 2017 – Source Exploration Corp. ("Source" or the "Company") (TSX-V: SOP) is pleased to

announce that it has closed its previously announced non -brokered private placement (the " Private

Placement") consisting of approximately 12,333,333 units of the Compa ny (the " Units") at a price of

$0.15 per Unit for gross proceeds of approximately $1.85 million. Each Unit consisted of one common

share of the Company (a " Common Share") and one transferable common share purchase warrant (a

"Warrant"). Each Warrant entitl es the holder to purchase one Common Share at a price of $0.25 per

Common Share until March 3, 2019 (subject to acceleration of the expiry date as described below).

The net proceeds from the Private Placement will be used to continue exploration on the Co mpany's Las

Minas project located in the State of Veracruz, Mexico, and for property payments, debt reduction and

general working capital purposes. The exploration program will include a 2,000 to 3,000 metre drill

program for definition and expansion of th e Eldorado-Juan Bran mineralized zone and an initial National

Instrument 43-101 resource technical report.

Under the Private Placement, Palisade Global Investments Ltd. (" Palisade") subscribed for 3,333,000

Units for an aggregate subscription price of $49 9,950. Following completion of the Private Placement,

Palisade holds 3,333,000 Common Shares, representing approximately 12.68% of the issued and

outstanding Common Shares, and 3,333,000 Warrants. If Palisade were to exercise all of its Warrants,

Palisade would hold 6,666,000 Common Shares, representing approximately 22.50% of the issued and

outstanding Common Shares on a partially diluted basis. As result, Palisade could potentially become a

new "Control Person" (as defined by the policies of the TSX Ventu re Exchange (the "Exchange")) of the

Company should it elect to exercise the Warrants held by it such that it holds more than 20% of the then

issued and outstanding Common Shares. Palisade has agreed with the Exchange and the Company that it

will not exercise any of the Warrants comprising the Units purchased by it under the Private Placement if

such exercise would result in Palisade beneficially owning, directly or indirectly, an aggregate of 20% or

more of the Company's issued and outstanding Common Share s, unless the Company has, prior to such

time, obtained the necessary shareholder approval to the creation of a new "Control Person" (as defined

by the Policies of the Exchange).

In connection with the Private Placement, the Company has: (i) paid an aggre gate of approximately

$57,723.60 in cash finder's fees to Echelon Wealth Partners, Gravitas Securities Inc., Haywood Securities

Inc., Mackie Research Capital Corporation, PI Financial Corp., Martin Gallagher and Michael Whistle,

representing 8% of the gros s proceeds of the Units that were sold to subscribers introduced by such

parties; and (ii) issued an aggregate of 72,000 non-transferable warrants (the " Finder's Warrants") to

purchase 72,000 Common Shares to Martin Gallagher, representing 8% of the Units that were sold to

subscribers introduced by Mr. Gallagher. The Finder's Warrants have the same terms as the Warrants.

Pursuant to the terms of the Warrants and the Finder's Warrants, the Company has the right to accelerate

the expiry date of the Warrants and the Finder's Warrants on notice to the holders of the Warrants and the

Finder's Warrants, if at any time after July 4, 2017 the closing price of its Common Shares on a stock

exchange in Canada is greater than $0.40 per Common Share for a period of 10 c onsecutive trading days,

in which case the Warrants and the Finder's Warrants will expire 30 days after the date on which such

notice is given.

The securities issued under the Private Placement are subject to a hold period under applicable Canadian

securities laws which will expire on July 4, 2017.

About Source Exploration Corp.

Source is a Canadian based mineral exploration company committed to building long -term value through

the discovery, acquisition and advancement of mineral properties. The Company holds an option on the

Las Minas gold, silver and copper exploration project located within the Las Minas mining district in the

State of Veracruz, Mexico. The district hosts one of the largest underexplored skarn systems known in

Mexico and has a strong production history that dates back to the Aztec era.

For further information, please contact:

Camille Turner, Investor Relations

Phone: 604-669-7840 or 604-970-8052

David Baker, Executive Chairman

Phone: 604-817-4211 or 604-970-8052

Brian Robertson, President & CEO

Phone: 807-474-4270 or 807-251-1816

Fax: 807-474-4272

E-mail: [email protected]

Website: www.sourceexploration.com

CAUTIONARY STATEMENT REGARDING FORWARD -LOOKING INFORMATION : This news

release includes certain information that may constitute "forward -looking information" under applicable Canadian

securities legislation. Forward -looking information includes, but is not limited to, statement s about the future

exploration results relating to the Las Minas project, exploration plans for the Las Minas project and the

exploration potential of the Las Minas project. Forward -looking information is necessarily based upon a number of

estimates and as sumptions that, while considered reasonable, are subject to known and unknown risks,

uncertainties, and other factors which may cause the actual results and future events to differ materially from those

expressed or implied by such forward -looking informat ion, including the risks identified in the Company's

disclosure documents. There can be no assurance that such information will prove to be accurate, as actual results

and future events could differ materially from those anticipated in such information. Ac cordingly, readers should

not place undue reliance on forward -looking information. All forward -looking information contained in this press

release is given as of the date hereof and is based upon the opinions and estimates of management and information

available to management as at the date hereof. The Company disclaims any intention or obligation to update or

revise any forward -looking information, whether as a result of new information, future events or otherwise, except

as required by law.

Neither TSX Ve nture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.