Mr. Peter Grosskopf reports

SPROTT RESOURCE LENDING CORP. REPORTS FIRST QUARTER 2012 RESULTS

Sprott Resource Lending Corp. has released its financial results for the three months ended March 31, 2012, which reflect continued positive returns from its resource loan portfolio.

"We are encouraged by the number of attractive investment opportunities in our pipeline and we expect to further deploy capital into quality resource loans in the near future. In addition, we continue to receive interest in our real estate portfolio assets, which we are working on monetizing," said Narinder Nagra, chief operating officer of Sprott Resource Lending.

First quarter highlights

• Net income in the first quarter 2012 was $5.4-million (or four cents per common share) compared with a loss of $1.7-million (or one cent per common share) in the first quarter of 2011. The improvement was largely a result of increased income on performing loans, increased origination and commitment fees recorded in income due to early repayment, and lower real estate and related transition costs.
• During the quarter, shares and warrants (received as bonuses in loan origination activities) increased from $5.8-million as at Dec. 31, 2011, to $8.2-million as at March 31, 2012, primarily due to the increase in valuation of the portfolio which was reflected in unrealized gains of $2.6-million on the income statement.
• Resource loans decreased to $103-million at March 31, 2012, from $120-million at Dec. 31, 2011, reflecting a large loan repayment. Currently, the company's resource loan and debentures stand at $113-million.
• Interest income on the resource loan portfolio was $4.4-million for the first quarter of 2012 compared with $1.1-million for the first quarter 2011, reflecting a $59.1-million increase in the company's resource loan portfolio.
• Book value continued to grow from $1.61 per common share at Dec. 31, 2011, to $1.63 per common share at March 31, 2012.

"Over all, excluding non-cash expenses, our operating expenses continued to moderate at $800,000 this quarter," commented Jim Grosdanis, chief financial officer of Sprott Resource Lending. "Based on the positive results of the resource loan portfolio, this is the first quarter where we have accrued a performance fee of $1.2-million. Looking forward, we expect our operations to continue to generate positive cash flow which will continue to support our dividends."

First quarter conference call

Sprott Resource Lending plans an investor conference call to discuss its financial results at 10 a.m. ET today. The call can be accessed by dialling local 647-427-7450 or toll-free 888-231-8191.

The call will be recorded and a replay made available approximately one hour after the live call ends. Individuals can access the replay by dialing local 416-849-0833 or toll-free 855-859-2056 and entering passcode 77954022 followed by the number sign. The replay will be available until May 17, 2012.

We seek Safe Harbor.