/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./ CALGARY, AB, May 29, 2024 /CNW/ - Source Rock Royalties Ltd. ("Source Rock") (TSXV:SRR), a pure-play oil and gas royalty company with an established portfolio of oil focused royalties, announces results for the three-month period ended March 31, 2024 ("Q1 2024"). Q1 2024 Highlights: Record quarterly royalty production of 241 boe/d (95% oil and NGLs), an increase of 34% over Q1 2023. Quarterly royalty revenue of $1,728,050, an increase of 25% over Q1 2023. Quarterly Adjusted EBITDA2 of $1,504,104 ($0.033 per share), an increase of 30% over Q1 2023. Quarterly funds from operations2 of $1,331,106 ($0.029 per share), an increase of 20% over Q1 2023. Declared $814,176 in dividends ($0.018 per share), resulting in a payout ratio2 of 61%. Achieved an operating netback2 of $68.58 per boe and a corporate netback2 of $60.70. 13 gross new horizontal wells began producing on royalty lands in SE Saskatchewan (10) and central Alberta (3). Ended Q1 2024 with cash and cash equivalents of $2,445,179. President's Message We are very pleased to report record royalty production in Q1 2024. This is the first quarter that our 2023 royalty acquisitions fully contributed to production volumes, in particular our December 2023 Alberta Clearwater Formation heavy oil acquisition. We also continue to see strong drilling activity from various operators targeting the Frobisher Formation on our SE Saskatchewan royalty lands. We are actively evaluating additional royalty acquisitions that can be completed with our current working capital of ~$3.0 million ($0.065 per share) and future cash flow. Source Rock is well positioned to compound the growth of our royalty production and royalty lands, while also paying an attractive and sustainable monthly dividend. Financial and Operational Results Three Months Ended March 31, FINANCIAL ($, except as noted) 2024 2023 Change Royalty revenue 1,728,050 1,380,251(1) 25 %  Adjusted EBITDA(2) 1,504,104 1,157,520 30 % Per share (basic) 0.033 0.026 27 % Funds from operations(2) 1,331,106 1,111,471 20 % Per share (basic) 0.029 0.025 16 % Total comprehensive income (loss) 217,968 222,235 -2 %