SOURCE ENERGY SERVICES LTD. INTERIM

Operating and Financial Review

MANAGEMENT’S DISCUSSION AND ANALYSIS The following Management’s Discussion and Analysis (“MD&A”), dated August 1, 2019, reflects the operating and financial results of Source Energy Services Ltd. and its subsidiaries, collectively (“Source” or, the “Company”) as at and for the three and six months ended June 30, 2019 compared with the corresponding periods in the prior year. The MD&A is provided to assist readers in understanding the Company’s financial performance and position during the periods presented and significant trends that may impact the future performance of Source. This discussion should be read in conjunction with each of Source’s unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2019 and the audited consolidated financial statements for the years ended December 31, 2018 and 2017, together with the accompanying notes (the “Financial Statements”). The Financial Statements and other information relating to Source, including the Annual Information Form (“AIF”), are available under the Company’s SEDAR profile at www.sedar.com. The Financial Statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). Unless otherwise stated, all amounts are expressed in Canadian dollars. Certain financial measures referred to in this MD&A are not prescribed by IFRS. “EBITDA” and “Adjusted EBITDA” are, among other things, used by management as a representation of earnings generated to fund capital investments and meet financial obligations and “Adjusted Gross Margin” is used by management to assist in comparisons with peers. “Free Cash Flow” is generally used to assess the ability to fund discretionary capital and non-capital spend from cash flows provided by operating activities. See “Non-IFRS Measures” for further information regarding the following non- IFRS measures used in this MD&A: “EBITDA”, “Adjusted EBITDA”, “Adjusted Gross Margin” and “Free Cash Flow”, as well as a reconciliation to IFRS measures of the Company. This MD&A contains “forward-looking statements” or “forward-looking information” within the meaning of applicable Canadian securities laws (collectively, “forward-looking statements”) based on Source’s current expectations and projections. For information on the material factors and ass