Source Energy Services Update on Refinancing Process and Extension of the Waiver from Lenders under its Credit Agreement

(TheNewswire)

Calgary, Alberta –

TheNewswire –

(September
22, 2022)

(

TSX:SHLE

) (OTC:SCEYF)

– Source Energy Services Ltd. (together with its affiliates,
“Source” or the “Company”) announces that it continues to make
progress and is now in the final stages of closing the previously
announced senior credit facility. As noted in our news release of
September 15, 2022, the Company received a waiver from its lenders,
which has now been extended to October 14, 2022, to allow Source time

to

complete closing its new credit facility.

ABOUT SOURCE ENERGY SERVICES

Source is a company that focuses on the integrated production and
distribution of high quality frac sand, as well as the distribution of
other bulk completion materials not produced by Source. Source
provides its customers with an end-to-end solution for frac sand
supported by its Wisconsin and Peace River mines and processing
facilities, its Western Canadian terminal network, its “last mile”
logistics capabilities and Sahara, a proprietary wellsite mobile sand
storage and handling system.

Source’s full-service approach allows customers to rely on its
logistics platform to increase reliability of supply and to ensure the
timely delivery of frac sand and other bulk completion materials at
the wellsite.

FORWARD-LOOKING STATEMENTS

Certain statements contained in this press release constitute
forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information as
to the future events, results of operations and Source’s future
performance (both operational and financial) and business prospects.
In certain cases, forward- looking statements can be identified by the
use of words such as “expects”, “estimates”,
“anticipates”, “believes”, “continues”, “focus” or
variations of such words and phrases, or state that certain actions,
events or results “may” or “will” be taken, occur or be
achieved. Such forward-looking statements reflect Source’s beliefs,
estimates and opinions regarding its future growth, results of
operations, future performance (both operational and financial), and
business prospects and opportunities at the time such statements are
made, and Source undertakes no obligation to update forward-looking
statements if these beliefs, estimates and opinions or circumstances
should change unless required by applicable

law.

Forward-looking statements are necessarily based upon a number
of estimates and assumptions made by Source that are inherently
subject to significant business, economic, competitive, political and
social uncertainties and contingencies. Forward-looking statements are
not guarantees of future performance. In particular, this press
release contains forward-looking statements pertaining, but not
limited, to: Source’s discussions with its debtholders and lenders,
and the noteholders’ intention to not accelerate repayment of the
Senior Notes; Source’s expectations of its ability to complete a
refinancing of its credit facility

.

By their nature, forward-looking statements involve numerous current
assumptions, known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Source to differ materially from those anticipated by Source and
described in the forward-looking statements.

With respect to the forward-looking statements contained in this press
release assumptions have been made regarding, among other things:
proppant market prices; future oil, natural gas and liquefied natural
gas prices; future global economic and financial conditions; future
commodity prices, demand for oil and gas and the product mix of such
demand; levels of activity in the oil and gas industry in the areas in
which Source operates; the continued availability of timely and safe
transportation for Source’s products, including without limitation,
Source’s rail car fleet and the accessibility of additional
transportation by rail and truck; the maintenance of Source’s key
customers and the financial strength of its key customers; the
maintenance of Source’s significant contracts or their replacement
with new contracts on substantially similar terms and that contractual
counterparties will comply with current contractual terms; operating
costs; that the regulatory environment in which Source operates will
be maintained in the manner currently anticipated by Source; future
exchange and interest rates; geological and engineering estimates in
respect of Source’s resources; the recoverability of Source’s
resources; the accuracy and veracity of information and projections
sourced from third parties respecting, among other things, future
industry conditions and product demand; demand for horizontal drilling
and hydraulic fracturing and the maintenance of current techniques and
procedures, particularly with respect to the use of proppants;
Source’s ability to obtain qualified staff and equipment in a timely
and cost-efficient manner; the regulatory framework governing
royalties, taxes and environmental matters in the jurisdictions in
which Source conducts its business and any other jurisdictions in
which Source may conduct its business in the future; future capital
expenditures to be made by Source; future sources of funding for
Source’s capital program; Source’s future debt levels; the impact
of competition on Source; and Source’s ability to obtain financing
on acceptable terms.

A number of factors, risks and uncertainties could cause results to
differ materially from those anticipated and described herein
including, among others: the effects of competition and pricing
pressures; risks inherent in key customer dependence; effects of
fluctuations in the price of proppants; risks related to indebtedness
and liquidity, including Source’s leverage, restrictive covenants in
Source’s debt instruments and Source’s capital requirements; risks
related to interest rate fluctuations and foreign exchange rate
fluctuations; changes in general economic, financial, market and
business conditions in the markets in which Source operates; changes
in the technologies used to drill for and produce oil and natural gas;
Source’s ability to obtain, maintain and renew required permits,
licenses and approvals from regulatory authorities; the stringent
requirements of and potential changes to applicable legislation,
regulations and standards; the ability of Source to comply with
unexpected costs of government regulations; liabilities resulting from
Source’s operations; the results of litigation or regulatory
proceedings that may be brought against Source; the ability of Source
to successfully bid on new contracts and the loss of significant
contracts; uninsured and underinsured losses; risks related to the
transportation of Source’s products, including potential rail line
interruptions or a reduction in rail car availability; the geographic
and customer concentration of Source; the impact of climate change
risk; the ability of Source to retain and attract qualified management
and staff in the markets in which Source operates; labor disputes and
work stoppages and risks related to employee health and safety;
general risks associated with the oil and natural gas industry, loss
of markets, consumer and business spending and borrowing trends;
limited, unfavorable, or a lack of access to capital markets;
uncertainties inherent in estimating quantities of mineral resources;
sand processing problems; implementation of recently issued accounting
standards; the use and suitability of Source’s accounting estimates
and judgments; the impact of information systems and cyber security
breaches; and risks and uncertainties related to COVID-19 or its
variants, including changes in energy demand.

Although Source has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in the forward-looking statements, there may be other
factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
forward-looking statements will materialize or prove to be accurate,
as actual results and future events could differ materially from those
anticipated in such statements. The forward-looking statements
contained in this press release are expressly qualified by this
cautionary statement. Readers should not place undue reliance on
forward-looking statements. These statements speak only as of the date
of this press release. Except as may be required by

law,

Source expressly disclaims any intention or
obligation to revise or update any forward-looking statements or
information whether as a result of new information, future events or
otherwise.

Any financial outlook and future-oriented financial information
contained in this press release regarding prospective financial
performance, financial position or cash flows is based on assumptions
about future events, including economic conditions and proposed
courses of action based on management’s assessment of the relevant
information that is currently available. Projected operational
information contains forward-looking information and is based on a
number of material assumptions and factors, as are set out above.
These projections may also be considered to contain future oriented
financial information or a financial outlook. The actual results of
Source’s operations for any period will likely vary from the amounts
set forth in these projections and such variations may be material.
Actual results will vary from projected results. Readers are cautioned
that any such financial outlook and future-oriented financial
information contained herein should not be used for purposes other
than those for which it is disclosed herein. The forward-looking
information and statements contained in this document speak only as of
the date hereof and have been approved by the Company’s management
as at the date hereof. The Company does not assume any obligation to
publicly update or revise them to reflect new events or circumstances,
except as may be required pursuant to applicable laws.