Press Release

Sprott Resource Corp. Announces 2016 Third Quarter Results

TORONTO, Nov. 08, 2016 (GLOBE NEWSWIRE) -- Sprott Resource Corp. ("SRC" or the "Company") (TSX:SCP) today announced its financial results for the three-months ended September 30, 2016.

Third Quarter and Year-to-Date Highlights

As of the date hereof, the Company holds cash of $12.0 million after repaying its debt facility in full on October 13, 2016
Year-to-date, SRC has generated approximately $43.0 million in proceeds through the monetization of investments
SRC has exited over 90% of its entire position in Independence Contract Drilling, Inc. ("ICD"), generating net proceeds of approximately $27.5 million
In November, SRC sold its remaining position in its Royalty investment for gross proceeds of $0.6 million
In October, SRC invested $10 million in InPlay Oil Corp. (“InPlay Oil”) to support its asset purchase and business combination with Anderson Energy Inc.
In October, SRC invested an additional $1 million in Corsa Coal Corp. (“Corsa Coal”) as part of a $23 million financing

Financial Summary

Net Asset Value ("NAV") at September 30, 2016 of $105.7 million ($1.09 per share) compared to December 31, 2015 of $107.3 million ($1.11 per share)
For the three-months ended September 30, 2016, the Company recorded net income of $10.9 million ($0.11 earnings per basic and diluted share) compared to a net loss of $54.6 million ($0.56 loss per basic and diluted share) for the three-months ended September 30, 2015. Net income for the three-months ended September 30, 2016 is primarily comprised of net unrealized gains on investments of $12.3 million
As at September 30, 2016, the Company had working capital of $10.2 million with approximately $53 million in public company investments and $42 million in private company investments

"Over the past ten months, we have taken a number of steps to strengthen our balance sheet by exiting legacy and other investments in order to focus on our core holdings with the greatest potential to create value for our shareholders," said Steve Yuzpe, CEO of SRC. "Through these dispositions, we have generated approximately $43.0 million in cash, which has enabled us to eliminate all of SRC's outstanding debt and to participate in follow-on offerings for InPlay Oil and Corsa Coal, two of our core portfolio holdings."

"We think this is an exciting time for our investors," added Mr. Yuzpe. "SRC is now debt free and well positioned with strong core holdings. Looking ahead, we will continue to support our existing investments, work towards exiting our remaining legacy investments and pursue new, high-potential opportunities during what we believe to be a very attractive phase of the natural resource cycle."

SRC Net Asset Value as at September 30, 2016

The following table outlines SRC's equity attributable to shareholders and investment ownership as at September 30, 2016. Please see the Company's unaudited condensed interim consolidated financial statements and notes thereon, and management's discussion and analysis for the three and nine-months ended September 30, 2016 for additional information.

As at September 30, 2016, the fair value of the Company's public and private company investments was $53.1 million and $42.4 million respectively.

		As at			SRC Ownership (undiluted)
(in thousands except per share amounts and issued and outstanding common shares)		Sept. 30, 2016

Cash and cash equivalents		$	10,249
Trade and other receivables		9,627

Investments owned, at fair value
Energy production and services
InPlay Oil Corp.	5,491				19.8	%
Independence Contract Drilling, Inc.	13,406				12.0	%
R.I.I. North America Inc.	5,239				15.7	%
Other	600	24,736			n/a

Mining
Corsa Coal Corp.	39,362				19.0	%
Other	331	39,693			n/a

Agriculture
One Earth Farms Corp.	14,028				49.98	%
Union Agriculture Group	17,016	31,044			6.3	%

Trade and other payables		(1,596		)
Credit facility		(8,070		)
Total equity attributable to shareholders (NAV)		$	105,683

Number of common shares issued and outstanding as at September 30, 2016			96,672,102

NAV per share		$	1.09

Conference Call Details

SRC will hold a conference call to discuss its results for the three and nine-months ended September 30, 2016 on Tuesday, November 8, 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: 12770826. A taped replay of the conference call will be available until Tuesday, November 15, 2016 by calling (855) 859-2056, conference ID 12770826. The conference call will be webcast live at www.sprottresource.com and http://edge.media-server.com/m/p/phc7kedi

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) creation of value for shareholders; and (ii) continued support of our existing investments, working towards exiting our remaining legacy investments and pursuing new, high-potential opportunities during what we believe to be a very attractive phase of the natural resource cycle. 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) risks associated with the mining 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); (vii) other risks associated with SRC's portfolio companies' industries; (viii) those risks disclosed under the heading "Risk Management" in SRC's MD&A for the quarter ended September 30, 2016; (ix) those risks disclosed under the heading “Major Risks” with respect to each of SRC’s key investments in SRC's MD&A for the quarter ended September 30, 2016; and (x) 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.