Sprott Resource Corp. Announces 2012 Annual Results

TORONTO, March 28, 2013 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or 
the "Company") today announced financial results for the twelve-months ended 
December 31, 2012. 
"Throughout 2012, we continued to support the growth and development of our 
investee companies," said Kevin Bambrough, Chief Executive Officer of SRC. 
"During the year, we completed the successful disposition of one business and 
made new investments in the energy services and agricultural nutrients 
sectors. In keeping with our commitment to providing our shareholders with an 
attractive total return and increased liquidity, we also continued to buy back 
stock through our normal course issuer bid and, in December, we implemented a 
monthly dividend that will pay approximately 10% of SRC's average annual total 
equity attributable to shareholders." 
"In November, we completed the disposition of our investment in Waseca Energy 
Ltd. ("Waseca") for gross proceeds of $111.7 million compared to an investment 
of $44.2 million," added Paul Dimitriadis, SRC's Chief Operating Officer. "We 
continue to have a positive view of the energy sector and look forward to 
working with management teams to build value in our oil and gas investments in 
2013." 
"We are pleased with the progress of one of our newer investments, 
Independence Contract Drilling Inc. ("ICD"), as management executes on its 
three-year strategic plan. ICD's strategy is to continue to build and contract 
its leading edge technology rigs for the drilling operations of global E&P 
companies," said Arthur Einav, SRC's General Counsel and Managing Director. 
"Our agricultural investments continued to make progress in 2012," said Steve 
Yuzpe, Chief Financial Officer of SRC. "Most notably, One Earth Farms Corp. 
("One Earth Farms" or "OEF") completed the acquisition of Beretta Farms Inc. 
("Beretta Farms"), a purveyor of hormone free and antibiotic free natural and 
organic branded meat products in Ontario and British Columbia. This 
transaction is an important milestone in One Earth Farms' strategy of vertical 
integration and branded food products to meet the needs of retailers and 
consumers, while generating increased margins from an integrated supply chain." 
"In 2012, SRC marked five years in operation and, since inception to December 
31, 2012, has delivered a 27%(1) internal rate of return ("IRR") on our 
investments," added Mr. Bambrough. "We are very proud of this achievement, 
which places us near the top of all comparable resource-focused private equity 
strategies over the same time period. We believe that our investment process 
is proven, disciplined and repeatable and look forward to continuing to create 
value for our shareholders in the years ahead." 
SRC 2012 Equity attributable to shareholders to the date hereof 
The following table outlines SRC's equity attributable to shareholders as at 
December 31, 2012 and reflects the value at which individual items are carried 
on SRC's balance sheet. 


                                                            As at

(in thousands)                                  December 31, 2012

Cash and Cash Equivalents(1)                    $           5,405

Gold Bullion(2)                                           123,284

Other current assets                                        1,470

Loan receivable from associate                              4,500

Consolidated investment in:(3)                                   

OEOG (defined below)                                        7,228

One Earth Farms                                            42,416

Fair value investment in:                                        
       Long Run (defined below)(4)                        173,282
       Union Agriculture Group(5)                          38,729
       Virginia Energy (defined below)(6)                   3,228
       Anthem Resources (defined below)(7)                    263
       Potash Ridge (defined below)(8)                     14,667

Other investments                                           5,188

Equity investment in:                                            
       Stonegate Agricom Ltd.(9)                           15,332
       ICD(10)                                             47,908

Liabilities                                                      
       Less: Current Liabilities                        (10,712 )

Less: Non-Current Liabilities                           (12,316 )

Total equity attributable to shareholders (NAV) $         459,872
                                                                 

  1. Cash held at SRC and SRP (defined below) and does not include cash


 held by subsidiaries of SRC or investee companies.
  2. As at December 31, 2012, SRC held 73,971 thousand ounces of gold 
 bullion valued at $1,666.66 per ounce.
  3. One Earth Oil and Gas Inc. ("OEOG") and One Earth Farms are 
 controlled subsidiaries of SRC and are carried at their book 
 value.
  4. As at December 31, 2012, SRC owned 35.7 million shares of Long Run 
 Exploration Ltd. ("Long Run") (common shares and non-voting 
 preferred shares) valued at 4.86 per share.
  5. As at December 31, 2012, SRC owned 3.4 million common shares of 
 Union Agriculture Group valued at $11.44 per share, which is the 
 price that the Company has recorded as fair value.
  6. As at December 31, 2012, SRC owned 6.6 million common shares of 
 Virginia Energy Resources Inc. ("Virginia Energy") valued at $0.49 
 per common share.
  7. As at December 31, 2012, SRC owned 2.0 million common shares of 
 Anthem Resources Inc. ("Anthem Resources") valued at $0.13 per 
 share.
  8. As at December 31, 2012, SRC owned 21.2 million shares of Potash 


     Ridge Corporation ("Potash Ridge") (common shares and non-voting
     preferred shares) valued at $0.65 per share.  Also included in the


 balance is $0.9 million of warrants.
  9. As at December 31, 2012, SRC owned 46.9 million common shares of 


     Stonegate Agricom Ltd. ("Stonegate Agricom"), valued at its book
     value of $0.33 per share. The December 31, 2012 publicly traded


 price of these shares was $0.59 per common share.
 10. As at December 31, 2012, SRC owned 2.5 million common shares of 
 ICD.  ICD is not publicly listed and the Company equity accounts 


     for this investment.

Financial Highlights for the twelve-months ended December 31, 2012
    --  For the twelve-months ended December 31, 2012, the Company
        reported a net loss attributable to the shareholders of the
        Company of $57.1 million ($0.53 loss per basic and diluted
        share respectively), compared to a net income attributable to
        shareholders of $101.6 million ($0.89 earnings per basic and
        diluted share respectively), reported in the same period of
        2011. The net loss for the twelve-months ended December 31,
        2012 was primarily the result of the impairment of certain AFS
        investments ($112.8 million), which was partially offset by the
        gain on the sale of Waseca ($54.2 million, net of tax), while
        the net income for the twelve-months ended December 31, 2011
        was primarily the result of the sale of Orion Oil and Gas
        Corporation ($77.3 million, net of tax).
    --  For the twelve-months ended December 31, 2012, the Company has
        purchased and canceled 5.2 million common shares under the 2011
        NCIB at an average cost of $3.63 per share for a total cost of
        $18.9 million and purchased and canceled 5.0 million common
        shares under the 2012 NCIB at an average cost of $3.98 per
        share for an aggregate cost of $20.0 million. Subsequent to
        year end and as at the date hereof, the Company has purchased
        and canceled an additional 1.1 million common shares under the
        2012 NCIB at an average cost of $4.41 per share for a total
        cost of $4.8 million.  During the twelve-months ended December
        31, 2011, 490 thousand common shares were repurchased under the
        2011 NCIB Plan.
    --  Net assets (defined as total assets less total liabilities and
        non-controlling interest) attributable to the shareholders of
        the Company decreased to $459.9 million as at December 31, 2012
        from $511.5 million as at December 31, 2011.
    --  For the twelve-months ended December 31, 2012, the Company
        recorded a fair value increase of $5.7 million in its physical
        gold bullion holdings. As at December 31, 2012, the Company's
        gold bullion had a fair market value of $123.3 million
        (December 31, 2011: $117.6 million) compared to a cost of $75.4
        million.

Achievements by SRC Subsidiaries and Investees for the twelve-months ended 
December 31, 2012 (and to the date hereof):

SRC passes five-year anniversary and establishes performance track record
    --  On September 5, 2012, the Company passed its five-year
        anniversary under the management of SCLP. As at December 31,
        2012, the Company has calculated an IRR of approximately 27%(1)
        since inception.   SCLP will update this calculation at each
        year-end.

Institutes and maintains dividend policy and introduces dividend reinvestment 
plan
    --  As previously announced, SRC's Board of Directors approved a
        policy (the "Dividend Policy") pursuant to which SRC intends to
        pay a monthly dividend at least equal to 0.833% of SRC's total
        equity attributable to shareholders ("SRC's Book Value") based
        on the most recently filed financial statements of SRC at the
        time the dividend is declared. As such, SRC's Board of
        Directors intends to pay a dividend in respect of the month of
        April 2013 in the amount of $0.038 per common share, which is
        based on SRC's Book Value for the year ended December 31, 2012.
    --  On February 25, 2013, SRC announced the introduction of the
        dividend reinvestment plan (the "DRIP") for Canadian resident
        shareholders of common shares of SRC.  The DRIP provides a
        convenient and cost-effective method for eligible holders in
        Canada to maximize their investment in SRC by reinvesting their
        monthly cash dividends to acquire additional SRC common shares.
        A discount in the purchase price of up to 5% may apply on
        dividend reinvestment shares purchased from SRC.  Any
        applicable discounts on dividend reinvestment share purchases
        are announced at the time SRC declares a dividend.

Waseca
    --  On November 1, 2012, the sale of SRC's subsidiary Waseca to
        Twin Butte Energy Ltd. was completed (the "Twin Butte
        Arrangement"). The consideration received by SRC upon the sale
        was comprised of approximately $47.8 million of cash and
        approximately 19.9 million common shares of Twin Butte (the
        "Twin Butte Shares").  Immediately subsequent to the completion
        of the Twin Butte Arrangement, SRC sold all of the Twin Butte
        Shares for approximately $56.6 million of cash, resulting in
        total cash consideration of approximately $104.4 million for
        the sale of Waseca.  In addition to the cash and share
        proceeds, the Company received a special dividend of $7.3
        million from Waseca before selling the Waseca shares for total
        gross proceeds of $111.7 million.  SRC had invested
        approximately $44.2 million into Waseca in two investment
        tranches. Proceeds from the Twin Butte Arrangement were
        partially used to repay the full margin account balance owing
        by the Company at that time in its entirety.

One Earth Farms
    --  On February 19, 2013, SRC announced that its subsidiary OEF
        acquired Toronto based Beretta Farms, a purveyor of hormone
        free and antibiotic free natural and organic branded meat
        products in Ontario and British Columbia. This transaction is
        the first instance of OEF's strategy of vertical integration
        and branded food products, which will allow OEF to meet the
        needs of retailers and consumers, while generating increased
        margins from an integrated supply chain. After giving effect to
        the consideration of cash and common shares in OEF paid to the
        vendors of Beretta Farms, SRC's basic ownership in OEF
        decreased to approximately 54.3%.

OEOG
    --  On January 14, 2013, SRC announced that OEOG had entered into a
        joint venture agreement with Gift Energy Limited ("Gift
        Energy"), an entity established by the Gift Lake Metis
        Settlement ("Gift Lake"), to explore and develop Gift Lake
        lands for heavy oil.
    --  Gift Lake is located in the Peace River region of Northwest
        Alberta, an area of existing heavy oil production. The Gift
        Lake lands are situated southeast of major Bluesky oilsands
        production fields in the Seal and Cliffdale regions currently
        operated by several established Canadian energy producers. An
        oilsands lease for 12 sections (7,680 acres) of land has now
        been finalized with the Alberta government. As a precursor to
        further development activity, OEOG and Gift Energy completed an
        initial 3D seismic and initiated a drilling program in March of
        2013. OEOG management expects the Gift Lake heavy oil project
        to produce under cold flow primary technologies. An option on a
        further 12 sections is also available to the parties, subject
        to standard lease and permitting requirements.  As at the date
        hereof, OEOG has drilled three vertical wells and has begun
        drilling a horizontal leg from the first vertical well.

Stonegate Agricom
    --  SRC recorded an equity loss of $1.7 million for the
        twelve-months ended December 31, 2012 on its investment in
        Stonegate Agricom, primarily due to general and administrative
        expenses.

ICD
    --  At the date hereof, ICD has four rigs fully contracted and a
        fifth rig under construction.
    --  SRC recorded an equity loss of $1.9 million for the
        twelve-months ended December 31, 2012 on its investment in ICD,
        primarily due to general and administrative expenses,
        depreciation and amortization, manufacturing expenses and
        overhead.

The merger of WestFire Energy Ltd. and Guide Exploration Ltd. to form Long Run
    --  On October 29, 2012 the Company announced that it has acquired
        ownership of 20.1 million common shares of Long Run, which
        based on information contained in documents publicly filed by
        Long Run, represents approximately 18.3% of the total issued
        and outstanding common shares of Long Run (the "Long Run
        Shares").  The Company also owned 15.5 million non-listed,
        non-voting convertible common shares of WestFire Energy Ltd.,
        which continue to represent non-listed, non-voting convertible
        common shares of Long Run (the "Long Run Non-Voting Shares") on
        a one-for-one basis, being approximately 100% of the
        outstanding Long Run Non-Voting Shares and convertible into
        approximately 12.4% of the then outstanding Long Run Shares. 
        SRC is restricted from owning greater than 19.9% of the Long
        Run Shares. However, if the Long Run Non-Voting Shares were
        converted into Long Run Shares, SRC would have a combined
        ownership of approximately 28.4% based on information contained
        in documents publicly filed by Long Run.

About Sprott Resource Corp.

SRC is a Canadian-based company, the primary purpose of which is to invest and 
operate in natural resources through its subsidiaries. Through acquisitions, 
joint ventures and other investments, SRC seeks to provide its shareholders 
with exposure to the natural resource sector for the purposes of capital 
appreciation and real wealth preservation. SRC is well positioned to draw upon 
the considerable experience and expertise of both its Board of Directors and 
Sprott Consulting LP ("SCLP"), of which Sprott Inc. is the sole limited 
partner. Pursuant to a management services agreement between SCLP and SRC, 
SCLP provides day-to-day business management for SRC as well as other 
management and administrative services. SRC invests and operates through 
Sprott Resource Partnership ("SRP"), a partnership between SRC and Sprott 
Resource Consulting Limited Partnership, an affiliate of SCLP which is the 
managing partner of SRP.

Forward Looking Statements

This news release contains certain forward-looking information and statements 
(collectively referred to herein as "Forward-Looking Statements") within the 
meaning of applicable securities laws. The use of any of the words "expect", 
"anticipate", "continue", "estimate", "may", "will", "project", "should", 
"believe", "plans", "intends" and similar expressions are intended to identify 
Forward-Looking Statements. In particular, but without limiting the forgoing, 
this news release contains Forward-Looking Statements pertaining to: (i) SRC's 
future strategies, outlook, investment opportunities and anticipated events or 
results; (ii) the creation of value for SRC shareholders in the future; (iii) 
SRC's Dividend Policy, future dividend payments and DRIP (including any 
applicable discounts in the purchase price); (iv) the building of value in the 
Company's oil and gas investments in 2013; (v) One Earth Farms' strategy of 
vertical integration and branded food products and the expectation that it 
will allow OEF to meet the needs of retailers and consumers, while generating 
increased margins from an integrated supply chain; and (vi) the anticipated 
production of Gift Lake heavy oil project. Forward-Looking Statements are 
based on a number of expectations or assumptions which have been used to 
develop such information and statements but which may prove to be incorrect, 
including, but not limited to: (i) the benefits of investments; (ii) expected 
sales and margins of Beretta Farms; (iii) oil and gas reserves; (iv) expected 
oil and gas production results from future drilling by OEOG; and (v) expected 
rates of production by OEOG. Although SRC believes the expectations and 
assumptions reflected in such Forward-Looking Statements are reasonable, undue 
reliance should not be placed on Forward-Looking Statements because SRC can 
give no assurance that such expectations and assumptions will prove to be 
correct. The Forward-Looking Statements included in this new release are not 
guarantees of future performance and should not be unduly relied upon. Such 
information and statements, including the assumptions made in respect thereof, 
involve known and unknown risks, uncertainties and other factors, which may 
cause actual results or events to differ materially from those anticipated in 
such Forward-Looking Statements, including, without limitation: (i) general 
economic, market and business conditions; (ii) market volatility that would 
affect the ability to enter or exit investments; (iii) risks associated with 
the farming industry in general (e.g., weather risks, operational risks in 
production; the uncertainty of estimates and projections related to crop and 
cattle); (iv) risks associated with the food product and retail business (e.g. 
food safety risks and fluctuations in the price of inputs and sales volumes); 
(v) risks associated with the oil and gas industry in general (e.g., 
operational risks in development, exploration and production; delays or 
changes in plans with respect to exploration or development projects or 
capital expenditures; the uncertainty of estimates and projections relating to 
reserves, production, costs and expenses, and health, safety and environmental 
risks); (vi) commodity price and exchange rate fluctuations and uncertainties 
resulting from potential delays or changes in plans with respect to 
exploration or development projects or capital expenditures; (vii) mining 
risks; (viii) the uncertainty of mineral reserves and resources; (ix) changes 
in environmental and other regulations; and * those listed under the heading 
"Risk Factors" in SRC's annual information form dated March 28, 2013. In 
addition, the payment of dividends is not guaranteed and the amount and timing 
of any dividends payable by SRC will be at the discretion of the Board of 
Directors and will be established on the basis of SRC's earnings, the 
satisfaction of solvency tests imposed by applicable corporate law for the 
declaration and payment of dividends, and other relevant factors. Should one 
or more of these risks or uncertainties materialize, or should assumptions 
underlying the Forward-Looking Statements prove incorrect, actual results, 
performance or achievements could vary materially from those expressed or 
implied by the Forward-Looking Statements contained in this news release. The 
Forward-Looking Statements contained in this news release speak only as of the 
date of this news release, and SRC does not assume any obligation to publicly 
update or revise any of the included Forward-Looking Statements, whether as a 
result of new information, future events or otherwise, except as may be 
expressly required by applicable securities laws.

Non-IFRS Financial Measures

(1) Internal rate of return is a rate of return measure often used in 
investment analysis to compare investment opportunities. The Company believes 
that providing an internal rate of return measure on a supplemental basis to 
our IFRS results is helpful to investors in assessing the overall performance 
of the Company over the past five years. Non-IFRS financial measures do not 
have a standardized meaning prescribed by IFRS and are therefore unlikely to 
be comparable to similar measures presented by other issuers. Past performance 
is not a reliable indicator of future results.

The internal rate of return calculation incorporated cash flows beginning on 
September 30, 2007 related to issuance of common shares, including through the 
exercise of warrants and stock options, the repurchase of common shares 
through normal course issuer bids and the payment of management fees and 
incentive fees and excludes income taxes paid. The calculation also includes 
management's estimate of the fair value of subsidiaries and entities over 
which the Company has significant influence, if different from the net asset 
value reflected in the Company's financial statements. The internal rate of 
return calculation does not correlate perfectly with the performance of the 
Company's quoted stock price from its listing on the listed on the Toronto 
Stock Exchange, or the compound annual growth rate of the net asset value due 
to the adjustments described above.

Information Regarding Disclosure on Oil and Gas Information

Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel 
of oil equivalent per day ("boe/d"), natural gas volumes have been converted 
to barrels of oil equivalent on the basis that 6 thousand cubic feet ("mcf") 
is equal to one barrel of oil. Use of the term boe may be misleading, 
particularly if used in isolation. This boe conversion ratio is based on an 
energy equivalence methodology, and does not represent a value equivalency. 
Indeed, the energy and value relationships may differ widely with market 
conditions. The conversion conforms to the Canadian Securities Regulators' 
National Instrument 51-101 - Standards of Disclosure for Oil and Gas 
Activities.







Stephen Yuzpe Chief Financial Officer Tel: (416) 977-7333 Fax: (416) 977-9555

SOURCE: Sprott Resource Corp.

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CO: Sprott Resource Corp.
ST: Ontario
NI: MNG ERN 

-0- Mar/28/2013 11:30 GMT