SOURCE ROCK ROYALTIES ANNOUNCES FIRST QUARTER 2026 RESULTS AND PROVIDES CORPORATE UPDATE

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./ CALGARY, AB , June 1, 2026 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV: SRR ), a pure-play oil and gas royalty company with an established portfolio of oil royalties and Crown mineral leases, announces results for the three-month period ended March 31, 2026 ("Q1 2026"). President's Message - Corporate Update During Q1 2026, we experienced two very different market environments. Oil prices were below $60.00 USD per barrel in January and remained very weak for almost all of February; which followed extended oil price weakness throughout the second half of 2025. These prolonged lower oil prices resulted in less new drilling activity on our royalty lands and reduced new production to offset natural declines from consistent drilling activity in 2024 and the first half of 2025. In addition, our production volume royalty had a scheduled decline from 70 bbl/d to 39 bbl/d that went into effect on January 1, 2026. This weakness reversed quickly when oil prices spiked in March, which changed the dynamic across our royalty lands for the first quarter and improved our outlook for the remainder of 2026. March royalty production rebounded from earlier in Q1 2026 to average 204 boe/d and royalty revenue for the month was approximately $623,000. Seven new horizontal wells began producing in March on our central Alberta (4) and S.E. Saskatchewan (3) royalty lands. The higher oil price environment not only increases the royalty revenue from our existing production due to our ~90% oil royalty production ratio, but it also positively changes our expectations for new drilling on our royalty lands. In particular, the operator of our Clearwater royalty lands recently disclosed that they have added a second rig to the property and anticipate an increase in the number of Clearwater horizontal wells to b