Mr. Mark Ashcroft of Stonegate reports

STONEGATE AGRICOM TO ISSUE COMMON SHARES FOR DEBT

Stonegate Agricom Ltd. and Sprott Resource Corp. have reached an agreement for Stonegate to acquire Sprott Resource's fully drawn $7.5-million loan facility for 11,538,462 Stonegate common shares at a price of 65 cents per share. The proposed transaction is expected to close by May 7, 2013.

The number of Stonegate outstanding shares will increase to 155,909,371 and Sprott Resource's ownership of Stonegate shares will increase to 58,450,462 or 37.5 per cent from the current level of 46,912,000 or 32.5 per cent. The transaction is subject to the approval of the Toronto Stock Exchange.

"We welcome the continuing financial support of SRC, our largest shareholder. This transaction will eliminate the security and debt covenants associated with the loan and allow us the freedom to pursue a full range of financing options required to acquire the mining equipment fleet and to construct and commence operation of the proposed underground mine at our Paris Hills phosphate property in Idaho," said Mark Ashcroft, Stonegate's president and chief executive officer.

We seek Safe Harbor.