Source Exploration Corp.

Source Exploration Corp.

December 24, 2009 09:30 ET

Source Exploration Corp. Completes $825,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 24, 2009) - SOURCE EXPLORATION CORP. (the "Company" or "Source") (TSX VENTURE:SOP) is pleased to announce that it has completed its previously announced brokered private placement of $825,000 (the "Offering"). The Offering was completed through Jones, Gable & Company Limited as agent in connection with the Offering. The over- allotment option granted to Jones Gable & Company Limited (the "Agent") in connection with the Offering was fully subscribed.

Pursuant to the Offering, Source issued and sold a total of 4,125,000 units (the "Units ") at a price of $0.20 per Unit, with each Unit being comprised of one common share of the Company and one half of one common share purchase warrant (each whole warrant a "Warrant"). The total Units includes 375,000 Units sold pursuant to the exercise of the Agent's over- allotment option. Each Warrant entitles the holder thereof to acquire one common share of Source at any time up to December 23, 2011 for an exercise price of $0.30.. In the event that Source's share price exceeds $0.40 for a continuous 20 day trading period in advance of the expiry date of the share purchase warrants, Source may require early exercise of the share purchase warrants at its sole discretion. After the aforesaid 20 day period, Source may issue a 10 day notice advising the subscribers to exercise their share purchase warrants within the 10 day period following the notice.

Source plans to use the net proceeds from the sale of the Units to fund the Company's exploration program at its San Acacio property located at Zacatecas, Mexico and for general working capital purposes. Drilling at San Acacio on the Veta Grande vein system began prior to the Christmas break and has successfully intersected several mineralized vein zones similar to those previously mined. Assays are expected in the near future. Since discovery of silver in the Zacatecas mining district in 1546, 180 million ounces of silver have been extracted from the Veta Grande vein complex (Silver Standard Report 1996). It has been estimated that the ore mined at San Acacio graded on average approximately 1,000 g/tonne (29.17 oz/ ton) of silver, with associated gold, lead and copper mineralization.

This press release is approved by Mr. Brian Robertson, Qualified Person for Source Exploration Corp.

Source Exploration Corp. (TSX VENTURE:SOP) is a Canadian based TSX Venture Company focusing on the acquisition and development of economic silver deposits in Mexico. At present, the Company is carrying out a 2,500 metre diamond drill program at the past producing San Acacio silver mine located in the prolific Zacatecas silver district.

Certain terms or statements made that are not historical facts, such as anticipated advancement of mineral properties or programs, productions, sales of assets, exploration plans or results, costs, prices, performance are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to; metals price volatility, volatility of metals production, project development risks and ability to raise financing. Certain statements included in this news release constitute "forward-looking information" within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

Shares Issued: 26,181,248

Neither 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 or accuracy of this release.

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