Source Exploration Provides Update ON Private Placement Financings

SOURCE EXPLORATION PROVIDES UPDATE ON PRIVATE PLACEMENT FINANCINGS

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION

IN THE UNITED STATES

February 13, 2017 – Source Exploration Corp. ("Source" or the " Company") (TSX-V: SOP) is

pleased to announce, further to its news releas es dated September 28, 2016, November 30, 2016 and

January 5, 2017, that it has now arranged a non-brokered private placement (the " Private Placement") of

up to 12,333,333 units of the Company (the " Units") at a price of $0.15 per Unit for gross proceeds of up

to approximately $1.85 million to replace the second tranche of the previously announced non-brokered

private placement. Each Unit will consist of one common share of the Company (a " Common Share")

and one transferable common share purchase warrant (a " Warrant"). Each Warrant will entitle the holder

to purchase one Common Share at a price of $0.25 per Common Share for a period of twenty-four months

from the closing date of the Private Placement (subject to acceleration of the expiry date).

The other terms of the Private Placement, including th e use of proceeds, the payment of cash finder's fees

and issuance of non-transferable finder's warrants (the " Finder's Warrants ") to certain arm's length

parties, and the terms of the Warrants and Finder's Warrants, remain the same as the terms of the

previously announced non-brokered private placement.

Closing of the Private Placement is anticipated to occur on or around February 21, 2017. The Private

Placement is subject to receipt of all required regul atory approvals including the approval of the TSX

Venture Exchange. The securities i ssued under the Private Placement will be subject to a hold period

under applicable Canadian securities laws which will expire four months and one day from the date of

closing of the Private Placement.

About Source Exploration Corp.

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

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

Las Minas gold, silver and copper exploration project located within the Las Min as 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, statements about the anticipated

closing date of the Private Placement, 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 bas ed upon a number of estimates and assump tions 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 information, 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. Accordingly, 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 Venture Exchange nor its Regulation Services Pr ovider (as that term is defined in the policies of the

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