Create sorted list based on longer, unsorted source

Hi,

I have a workbook (simple version attached) in which I have a source worksheet that contains an unsorted list of values (approx 400 lines). In a second worksheet I want to use a list (data validation) that only contains a selection of the values in the source worksheet.

the workbook:
3 worksheets: Source (1), Lists (2) and Second (3)
Source: source list and some extra working columns to help me determine which values I want to have in the list. The code to update the list is only triggered when there is a change in the source list.
List: hidden ws that is used to maken the new (sorted) list
Second: any other ws in which I want to use the sorted list as a dropdown menu.

my question:
is there a way to make the code more efficient?
how can I sort the new list and have the duplicates and blanks removed?

thanks