Press Release

Sprott Resource Corp. Announces 2016 First Quarter Results

TORONTO, May 11, 2016 (GLOBE NEWSWIRE) -- Sprott Resource Corp. (TSX:SCP) ("SRC" or the "Company") today announced its financial results for the three-months ended March 31, 2016.

Summary

Net Asset Value ("NAV") at March 31, 2016 of $112.5 million ($1.16 per share) compared to December 31, 2015 of $107.3 million ($1.11 per share).
For the three-months ended March 31, 2016, the Company recorded net income of $5.0 million ($0.05 earnings per basic and diluted share) compared to a net loss of $25.9 million ($0.27 loss per basic and diluted share) for the three-months ended March 31, 2015. The net income for the three-months ended March 31, 2016 is primarily comprised of unrealized gains net of foreign exchange losses on investments of $128.8 million.
As at March 31, 2016, the Company's cash position less its debt was negative $15.7 million with approximately $63 million million in public company investments.
On May 10, 2016, the Company amended its debt facility with Sprott Resource Lending Corp. providing for additional flexibility until November 11, 2016.

"During the first quarter of 2016 two of our core holdings, Corsa Coal Corp. and Independence Contract Drilling Inc., completed successful financings that position them well to endure the downturn and capitalize on new opportunities as the outlook for the energy and mining sectors improves," said Steve Yuzpe, CEO of Sprott Resource Corp.

"We expect Calgary Sinoenergy Investment Corp.’s acquisition of Long Run Exploration Ltd. to close by the end of May," continued Mr. Yuzpe. "This transaction will generate approximately $12 million in proceeds for SRC, the majority of which will be used to pay down our debt facility, which has now been modified and extended to November 2016, to provide us with additional flexibility as we seek to monetize some of our more mature holdings."

SRC Net Asset Value as at March 31, 2016

The following table outlines SRC's equity attributable to shareholders and investment ownership as at March 31, 2016. Please see the Company's unaudited condensed interim consolidated financial statements and notes thereon, and management's discussion and analysis for the three-months ended March 31, 2016 for additional information.

As at March 31, 2016, the fair value of the Company's public and private company investments was $62.9 million and $65.9 million respectively.

		As at			SRC Ownership (undiluted)
(in thousands except per share amounts and issued and outstanding common shares)		March 31, 2016

Cash and cash equivalents		$	631
Trade and other receivables		289

Investments owned, at fair value
Energy exploration, production and services
Long Run Exploration Ltd.	11,155				11.9	%
InPlay Oil Corp.	7,504				19.9	%
Independence Contract Drilling, Inc.	28,021				18.4	%
R.I.I. North America Inc.	5,239				15.8	%
Other	448	52,367			n/a

Mining
Corsa Coal Corp.	22,043				19.7	%
Other	1,631	23,674			n/a

Agriculture
One Earth Farms Corp.	25,384				49.98	%
Union Agriculture Group	27,354	52,738			6.3	%

Trade and other payables		(856		)
Credit facility		(16,359		)
Total equity attributable to shareholders (NAV)		$	112,484

Number of common shares issued and outstanding as at March 31, 2016			96,672,102

NAV per share		$	1.16

SRC corporate developments:

The Company reported net income of $5.0 million for the three-months ended March 31, 2016 compared to a net loss of $25.9 million for the three-months ended March 31, 2015. The current quarter's gain was primarily comprised of the unrealized gain on the Company's investment in Corsa Coal.
Expenses for the three-months ended March 31, 2016 were $1.5 million, compared to $1.9 million for the three-months ended March 31, 2015
The Company's discount to NAV at March 31, 2016 was 58.6% compared to 57.7% at December 31, 2015
As at March 31, 2016, the Company's cash position less its debt was negative $15.7 million
On May 10, 2016, the credit facility was converted into a term facility and extended until November 11, 2016 such that any amounts that may be paid on the term facility will be a permanent reduction of the term facility and may not be re-borrowed

Conference Call Details

SRC will hold a conference call to discuss its results for the three-months ended March 31, 2016 on Wednesday, May 11, 2016 at 11:00am Toronto time. To participate in the call, please dial (866) 322-9569 ten minutes prior to the scheduled start of the call and provide conference ID: 6376868. A taped replay of the conference call will be available until Wednesday, May 18, 2016 by calling (855) 859-2056. The conference call will be webcast live at www.sprottresource.com and http://edge.media-server.com/m/p/72v36mx3

About Sprott Resource Corp.

Sprott Resource Corp. (TSX:SCP) is a publically-listed private equity firm focused on the natural resource sector. The company currently has investments in energy exploration, production and services, mining and agriculture. SRC creates value for its investors by applying a disciplined investment process to deploy capital while managing risk within highly cyclical sectors. SRC is a business builder that is committed to being a value-added partner with proven management teams. SRC supports its investments through active management and the provision of long-term capital, as well as strategic, financial and governance oversight. Founded in 2007, the Company is based in Toronto, Canada and is managed by an experienced team of private equity specialists, supported by the technical and investment resources of Sprott Inc. and its subsidiaries and affiliates. Management of SRC is dedicated to generating long-term superior returns on capital for its shareholders, while focusing on risk management and real wealth preservation. To learn more, please visit www.sprottresource.com.

Forward-Looking Information

Certain statements in this press release contain forward-looking information (collectively referred to herein as the "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 press release contains Forward-Looking Statements pertaining to: (i) the receipt of cash from the possible sale by the Company of its Long Run shares; (ii) positioning of Corsa Coal Corp. and Independence Contract Drilling Inc. to endure the downturn and capitalize on new opportunities; and (iii) the monetization of the Company’s mature holdings. Although SRC believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: (i) energy markets and the price of oil, natural gas liquids and natural gas will be higher in the future; (ii) the continued availability of quality management; (iii) the effects of regulation and tax laws of governmental agencies will not materially change; and (iv) the ability to obtain financing on acceptable terms will continue to be available. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) general economic, market and business conditions; (ii) commodity price fluctuations and uncertainties and, in particular the price of oil and gas; (iii) 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); (iv) risks associated with the farming industry in general (e.g., weather risks, operational risks in production; the uncertainty of estimates and projections related to livestock); (v) risks associated with the food manufacturing and retail business in general (e.g., a rise in the cost of inputs, a drop in pricing and/or sales volumes, food safety); (vi) other risks associated with SRC's portfolio companies' industries; (vii) those risks disclosed under the heading "Risk Management" in SRC's MD&A for the quarter ended March 31, 2016; and (viii) those risks described under the heading "Risk Factors" in SRC's annual information form dated March 4, 2016. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and SRC does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable Canadian securities laws.

For further information:

Glen Williams
Director of Communications
T: (416) 943-4394
E: gwilliams@sprott.com

Sprott Resource Corp.