Page 1

SOURCE ENERGY SERVICES AZ news release Source Energy Services Reports Q3 2021 Results Calgary , Alberta ( November 4 , 2021 ) TSX : SHLE Source Energy Services Ltd. is pleased to announce its 2021 third quarter financial results . THIRD QUARTER 2021 HIGHLIGHTS For the three months ended September 30 , 2021 , Source : . sold 751,611 metric tonnes ( " MT " ) of sand and earned sand revenue of $ 79.3 million ; • • • achieved record daily and monthly sand sales volumes ; added a new direct exploration and production ( " E & P " ) customer during the quarter and another shortly after the end of the quarter ; deployed a Sahara unit to Utah which commenced work with a large E & P customer in September ; . achieved utilization of 73 % for the quarter for the seven Sahara units operating in Canada ; • achieved a strong liquidity position , with $ 1.4 million of cash on hand and no draws on the asset backed loan ( " ABL " ) facility at the end of the quarter ; • realized gross margin of $ 12.8 million and Adjusted Gross Margin ( 1 ) of $ 17.7 million ; Note : reported net loss of $ 3.6 million , an improvement of $ 4.4 million from the same period last year ; and realized Adjusted EBITDA ( 1 ) of $ 11.3 million . ( 1 ) Adjusted Gross Margin ( including on a per MT basis ) and Adjusted EBITDA are not defined under IFRS , refer to ' Non - IFRS Measures ' below . ( $ 000's , except MT and per unit amounts ) Sand volumes ( MT ) ( 1 ) Nine months ended September 30 , 2021 1,954,385 Three months ended September 30 , 2021 751,611 2020 609,469 2020 1,494,166 Sand revenue Wellsite solutions 79,343 65,240 17,554 12,636 203,556 45,708 161,085 27,062 Terminal services 789 669 3,047 2,762 Sales 97,686 78,545 252,311 190,909 Cost of sales 79,994 61,242 200,139 150,383 Cost of sales depreciation 4,921 10,264 17,031 26,935 Cost of sales 84,915 71,506 217,170 177,318 Gross margin 12,771 7,039 35,141 13,591 Operating expense 4,606 2,753 12,372 9,287 General & administrative expense 2,299 2,220 7,293 8,176 Depreciation 2,336 3,158 7,447 11,213 Income ( loss ) from operations 3,530 ( 1,092 ) 8,029 ( 15,085 ) Total other expense 7,109 6,851 17,866 163,046 Loss before income taxes ( 3,579 ) ( 7,943 ) ( 9,837 ) Deferred tax expense Net loss ( 2 ) ( 3,579 ) ( 7,943 ) ( 9,837 ) ( 178,131 ) 31,350 ( 209,481 ) Net loss per share ( $ / share ) ( 3 ) ( 0.26 ) ( 1.53 ) ( 0.73 ) ( 41.60 ) Diluted net loss per share ( $ / share ) ( 3 ) ( 0.26 ) ( 1.53 ) ( 0.73 ) ( 41.60 ) Adjusted EBITDA ( 4 ) 11,310 13,019 36,931 25,560 www.sourceenergyservices.com 1