Source Rock forms Alberta mineral leasing JV

Mr. Brad Docherty reports SOURCE ROCK ROYALTIES ANNOUNCES ALBERTA CROWN MINERAL RIGHTS LEASING JOINT-VENTURE Source Rock Royalties Ltd. has formed the joint-acquisition of oil sands and petroleum and natural gas (PNG) leases in Alberta. Source Rock has entered into a joint-acquisition agreement with a private company (JV Co.), whereby the parties will jointly lease Crown mineral rights for the purpose of farming out the right to develop such leases in exchange for a royalty interest. The primary focus of the leasing JV is to acquire mineral rights prospective for various heavy oil horizons within the Mannville Stack that have the potential to be exploited using multilateral drilling technologies. All leases will be held 50 per cent by Source Rock. The principal of JV Co. is a professional geologist with 25 years of prospecting experience within the Western Canadian sedimentary basin. Pursuant to the leasing JV, the parties have successfully leased 11 sections (7,040 acres) of Crown mineral rights in Alberta. Mineral rights leased to date comprise seven sections (4,480 acres) of 15-year oil sands leases and four sections (2,560 acres) of four-year PNG leases. The parties will continue to evaluate, post for leasing and bid on additional Crown mineral leases. The leasing JV is focused on establishing an undeveloped land base that provides exposure to both near term drilling potential in areas already being developed by high-quality operators and longer-term upside optionality through low-cost early stage entry into less developed areas. Source Rock's current working capital is approximately $4.5-million (10 cents per share). President's message "We are excited to establish the leasing JV and for the prospects that we have gained exposure to through the initial 11 sections of leased mineral rights. Although we continue to be focused on scaling and diversifying our portfolio of producing oil royalties, we believe that it is an opportune time to increase early stage upside exposure and expand the potential to organically grow our royalty portfolio through the leasing JV and subsequent farm-out transactions." Brad Docherty, president and CEO 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. Source Rock targets a balanced growth and yield business model, using funds from operations to pursue accretive royalty acquisitions and to pay dividends. By leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock's strategy is premised on maintaining a low-cost corporate structure and achieving a sustainable and scalable business, measured by growing funds from operations per share and maintaining a strong netback on its royalty production. We seek Safe Harbor.