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LOS ANGELES--([ BUSINESS WIRE ])--The Board of Directors of Source Capital, Inc. (NYSE:SOR), today announced that Source Capital, Inc. will redeem all issued and outstanding shares of its $2.40 Preferred Stock, $3 par value (NYSE:SOR-) on June 29, 2012. The Preferred Stock will be redeemed, pursuant to its terms, at its stated call price of $27.50 per share plus accrued and unpaid dividends to the redemption date. Dividends shall cease to accrue on all shares of the Preferred Stock on the redemption date. There are currently 1,969,212 shares of Preferred Stock issued and outstanding.

Notices of redemption and letters of transmittal will be mailed to the holders of the Preferred Stock on or about May 30, 2012. Questions regarding the redemption of the Preferred Stock should be directed to Sourceas redemption agent, BNY Mellon Shareowner Services at 480 Washington Boulevard, 27th Floor, Jersey City, NJ 07310, Attention: Corporate Actions Department, or by calling (866) 442-4815.

Source Capital, Inc. is a closed-end investment company managed by First Pacific Advisors, LLC. On March 31, 2012, Source had total net assets of approximately $524 million. Additional information about Source can be found at [ www.fpafunds.com ].