Mr. Steve Yuzpe reports

SPROTT RESOURCE CORP. ANNOUNCES 2014 ANNUAL RESULTS

Sprott Resource Corp. today released its financial results for the year ended Dec. 31, 2014.

Summary:

• Net asset value at Dec. 31, 2014, was $227.7-million ($2.33 per share) compared with Dec. 31, 2013, of $366.2-million ($3.71 per share).
• For the three months ended Dec. 31, 2014, the company recorded a net loss of $137.9-million ($1.41 loss per basic and diluted share) compared with a net loss of $27.6-million (28-cent loss per basic and diluted share) for the three-months ended Dec. 31, 2013. The majority of the company's net loss for the period was attributable to unrealized losses on its energy-related investments.
• For the year ended Dec. 31, 2014, the company recorded a net loss of $135.6-million ($1.38 loss per basic and diluted share) compared with a net loss of $68.2-million (68-cent loss per basic and diluted share) for the year ended Dec. 31, 2013. The majority of the company's net loss for the year was attributable to unrealized losses on its energy-related investments.
• SRC completed $14.8-million in new investments during the final quarter of 2014.
• In November, 2014, SRC secured a $20-million credit facility from Sprott Resource Lending Corp., a subsidiary of Sprott Inc.

"The severe downturn in energy prices during the fourth quarter of 2014 and early part of 2015 negatively impacted our portfolio, particularly our publicly traded oil and gas investments," said Steve Yuzpe, president and chief executive officer of Sprott Resource. "However, like many investors in the energy sector, we believe the sell-off has been overdone. Over time, supply-and-demand fundamentals will drive a recovery in oil prices and a corresponding increase in the value of our energy holdings. However, we realize that any recovery will be gradual. As such, our current focus is on conserving our capital and helping our portfolio companies position themselves to emerge from this downturn in the best position to capitalize on the next upswing in the commodities cycle.

"Despite the setback that we experienced during the fourth quarter, we made solid progress towards our key priorities in 2014," added Mr. Yuzpe. "We completed a number of transactions, sourced numerous co-investment opportunities with other private equity investors and narrowed the discount to net asset value at which our shares trade. We remain confident in our investment process, the long-term fundamentals for hard assets and the quality of our investment portfolio. Over time, we believe our discipline and patience will be rewarded."

SRC net asset value as at Dec. 31, 2014

The table outlines SRC's equity attributable to shareholders and investment ownership as at Dec. 31, 2014 (in thousands except share and per-share amounts). Please see the company's audited consolidated financial statements and notes thereon, and management's discussion and analysis, as at and for the year ended Dec. 31, 2014, for additional information.

  
                                                         As at    SRC ownership
                                                 Dec. 31, 2014  (undiluted) (%)

Cash and cash equivalents                                1,713
Other current assets                                     2,806
Investments, at fair value
Long Run Exploration Ltd.                               34,500             11.9
One Earth Oil & Gas Inc.                                16,639             97.1
InPlay Oil Corp.                                        24,342             19.9
Corsa Coal Corp.                                        43,838             19.9
Independence Contract Drilling Inc.                     27,400             18.6
Stonegate Agricom Ltd.                                   3,318             36.5
Potash Ridge Corp.                                       3,604             24.4
One Earth Farms Corp.                                   31,000             49.9
Union Agriculture Group                                 38,677              6.6
Other investments                                       13,880              n/a
Liabilities
Less current liabilities                                 3,967
Less non-current liabilities                            10,019
Total equity attributable to shareholders (NAV)        227,731
NAV per share                                             2.33

SRC corporate and portfolio company developments:

• The company reported an investment loss of $130.1-million for the three months ended Dec. 31, 2014, that was composed of a net loss on investments of $132.9-million and dividend, royalty and interest income of $2.8-million. Expenses for the three months ended Dec. 31, 2014, were $3.1-million, including management fees of $1.7-million and transaction costs of $200,000.
• The company's discount to NAV narrowed to 19 per cent as at Dec. 31, 2014, from 37 per cent as at Dec. 31, 2013.
• As at Dec. 31, 2014, the company's cash position was $1.7-million with debt of $10-million.
• In February, 2015, subsequent to year-end, Long Run announced plans to suspend its dividend and scale back aggregate capital expenditures.

Conference call details

SRC will hold a conference call to discuss its 2014 annual results on March 4, 2015, at 10 a.m. ET. To participate in the call, please dial 647-427-7450 or 1-888-231-8191 10 minutes prior to the scheduled start of the call. The conference ID is 94510110. A taped replay of the conference call will be available until Wednesday, March 11, 2015, by calling 416-849-0833 or 1-855-859-2056, reference No. 94510110. The conference call will be webcast live at the company's website.

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