Many studies have focused on understanding memory processes due to their importance in daily life. Differences in timing and power spectra of brain signals during encoding task have been linked to later remembered items and were recently used to predict memory retrieval performance. However, accuracies remain low when using non-invasive methods for acquiring brain signals, mainly due to the low spatial resolution. This study investigates the prediction of successful retrieval using estimated source activity corresponding either to cortical or subcortical structures through source localization. Electroencephalogram (EEG) signals were recorded while participants performed a declarative memory task. Frequency-time analysis was performed using signals from encoding and retrieval tasks to confirm the importance of neural oscillations and their relationship with later remembered and forgotten items. Significant differences in the power spectra between later remembered and forgotten items were found before and during the presentation of the stimulus in the encoding task. Source activity estimation revealed differences in the beta band power over the medial parietal and medial prefrontal areas prior to the presentation of the stimulus, and over the cuneus and lingual areas during the presentation of the stimulus. Additionally, there were significant differences during the stimuli presentation during the retrieval task. Prediction of later remembered items was performed using surface potentials and estimated source activity. The results showed that source localization increases classification performance compared to the one using surface potentials. These findings support the importance of incorporating spatial features of neural activity to improve the prediction of memory retrieval.