Dear Shareholder:

It’s time for an update from Source. Over the past few months, Source has been working with our contract geologists in Mexico to redesign our initial 10,000 meter drill program. We believe it will best target previously developed but un-mined areas below historic production that produced silver oxide grading over 1kg/ton silver. Please see the targets indicated on the attached digitized longitudinal section of the Company’s San Acacio Mine property option in Zacatecas, Mexico. Click her to view the map.

In general, the Phase1 Drill Program will consist of 7,000 meters surface Diamond drilling and 3,000 meters underground drilling on the indicated targets.

Source, through its Mexican subsidiary, has secured a drill contract and expects to begin drilling as soon as permitting is complete later this month. Site preparation has been ongoing at San Acacio for the past 2 months.

With the difficult market conditions, Source has been prudent with its cash and remains fully funded and able to carry-out its mandate. We are confident that Source will produce a positive news flow at a more appropriate time in the market cycle.

To view the entire corporate presentation please visit: http://www.sourceexploration.com

With very best regards,

Lana McCray, Investor Relations

Phone: 604.646.7356

Abraham Drost, President/CEO

Phone: 807.252.7800