The Board of Directors of Source Capital, Inc. (NYSE:SOR) today declared a special distribution of $33.65 per common share, payable March 15, 2016, to shareholders of record as of the close of business February 19, 2016. As discussed in the November 17, 2015 announcement, “Source Capital Portfolio Manager Eric Ende to Retire,” the strategy change has resulted in the realization of significant long-term capital gains.

The Board of Directors has also declared a regular quarterly distribution of 41 cents per common share, payable March 15, 2016, to shareholders of record as of the close of business February 19, 2016. The quarterly distribution represents an annualized rate of approximately 4.5% of net assets after the payment of the special distribution declared above. It is expected that Source Capital will make quarterly distributions at approximately this rate for the first three quarters of 2016. However, if the equity markets continue to be weak, then it is expected that the distribution rate will decline in the fourth quarter to less than 2%, a level more commensurate with dividend and interest income. Source Capital’s actual investment results will ultimately determine the rate paid.

These distributions will be taxable in 2016 and reported to shareholders on the Form 1099 they will receive in early 2017.

Source Capital, Inc. is a closed-end investment company managed by First Pacific Advisors, LLC.

Source Capital, Inc.J. Richard Atwood(310) 996-5458

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