SRR:CC - SOURCE ROCK ROYALTIES CLOSES FULL OVER-ALLOTMENT OPTION FOR INITIAL PUBLIC OFFERING

Canada NewsWire

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CALGARY, AB , March 16, 2022 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR) (TSXV: SRR.WT) announces that it has closed the remaining over-allotment option (the "Over-Allotment Option") relating to its initial public offering (the "Offering") through the issuance of 1,667,000 units (each a "Unit" and collectively, the "Units") at a price of $0.90 per Unit, for aggregate gross proceeds of $1,500,300 , pursuant to a long form prospectus dated February 23, 2022 (the "Prospectus"). The full exercise of the Over-Allotment Option has resulted in the issuance of 15,334,100 Units pursuant to the Offering, for aggregate gross proceeds of $13,800,690 .

Each Unit consists of one common share of Source Rock (each a "Common Share" and collectively, the "Common Shares") and one-half of one Common Share purchase warrant (each whole warrant a "Warrant" and collectively, the "Warrants"). Each Warrant entitles the holder to purchase one Common Share of Source Rock at an exercise price of $1.25 for a period of two years.

The Offering was completed through a syndicate of underwriters co-led by PI Financial Corp. (as Sole Bookrunner) and Acumen Capital Finance Partners Limited, together with Haywood Securities Inc., Canaccord Genuity Corp. and ATB Capital Markets Inc.

Capital Structure & Working Capital

Source Rock currently has 44,896,645 Common Shares and 7,667,050 Warrants (at an exercise price of $1.25 ) issued and outstanding. As disclosed in the Prospectus, Source Rock also has 2,490,000 incentive stock options outstanding.

Source Rock currently has working capital of approximately $14,000,000 ( $0.31 per Common Share) and does not have any debt.

Source Rock intends to use its working capital to acquire additional oil and gas royalties in the Western Canadian Sedimentary Basin.

Additional information about Source Rock can be found in the Prospectus, which is available under Source Rock's profile on SEDAR at www.sedar.com .

The securities under the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or the securities laws of any state of the United States . Accordingly, the securities may not be offered, sold or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act), unless being done so pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. There will be no public offering of securities in the United States . This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Source Rock in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Source Rock Royalties Ltd.

Source Rock is a pure-play oil and gas royalty company with an existing, light oil focused portfolio of royalty interests concentrated in southeast Saskatchewan , east-central Alberta , west-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.

Forward-Looking Statements

This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding the use of proceeds of the Offering, Source Rock's growth strategy and expectations with respect to future opportunities. Such statements and information are based on the current expectations of Source Rock's management and are based on assumptions and subject to risks and uncertainties. Although Source Rock's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock, including the risk factors set forth in the Prospectus under the heading "Risk Factors". Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.

SOURCE Source Rock Royalties Ltd.

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