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Source Exploration Provides Update ON Second Tranche of Previously Announced Private Placement

Financings

SOURCE EXPLORATION PROVIDES UPDATE ON SECOND TRANCHE OF

PREVIOUSLY ANNOUNCED PRIVATE PLACEMENT

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION

IN THE UNITED STATES

January 5, 2017 – Source Exploration Corp. ("Source" or the " Company") (TSX-V: SOP) is pleased

to provide an update, further to its news releases dated September 28, 2016 and November 30, 2016, on

the second tranche of its previously announ ced non-brokered private placement (the " Private

Placement").

Following completion of the first tranche of the Private Placement on November 30, 2016, the Company

is continuing with the Private Placement. The TSX Venture Exchange has granted the Company a 30-day

extension of its conditional acceptance of the terms of the Private Placement and the Company intends to

close the second tranche of the Private Placement on or before January 31, 2017. The second tranche of

the Private Placement is subject to receipt of all required regulatory approvals including the approval of

the TSX Venture Exchange.

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 second tranche 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 neces sarily based upon a number of es timates and assumptions 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 expresse d 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 accu rate, as actual results and future even ts 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.