diff --git a/CHANGELOG.md b/CHANGELOG.md
index 57dd907c6..350b37cd4 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,6 +2,21 @@
 
 All notable changes to this project are documented in this file.
 
+## 1.0.0-rc.2
+
+**Release date:** 2023-05-09
+
+This release candidate comes with various updates to the controller's dependencies,
+most notable, Helm was updated to v3.11.3.
+
+Improvements:
+- Update dependencies
+  [#1086](https://github.com/fluxcd/source-controller/pull/1086)
+- Set RecoverPanic globally across controllers
+  [#1077](https://github.com/fluxcd/source-controller/pull/1077)
+- Move controllers to internal/controller
+  [#1076](https://github.com/fluxcd/source-controller/pull/1076)
+
 ## 1.0.0-rc.1
 
 **Release date:** 2023-03-30
diff --git a/config/manager/kustomization.yaml b/config/manager/kustomization.yaml
index ea6b807b8..2e9aa2168 100644
--- a/config/manager/kustomization.yaml
+++ b/config/manager/kustomization.yaml
@@ -6,4 +6,4 @@ resources:
 images:
 - name: fluxcd/source-controller
   newName: fluxcd/source-controller
-  newTag: v1.0.0-rc.1
+  newTag: v1.0.0-rc.2
diff --git a/go.mod b/go.mod
index b53379553..e1460a78f 100644
--- a/go.mod
+++ b/go.mod
@@ -42,7 +42,7 @@ require (
 	github.com/fluxcd/pkg/testserver v0.4.0
 	github.com/fluxcd/pkg/untar v0.3.0
 	github.com/fluxcd/pkg/version v0.2.1
-	github.com/fluxcd/source-controller/api v1.0.0-rc.1
+	github.com/fluxcd/source-controller/api v1.0.0-rc.2
 	github.com/go-git/go-billy/v5 v5.4.1
 	github.com/go-logr/logr v1.2.4
 	github.com/google/go-containerregistry v0.15.1