Sprott Resource Corp. Announces Second Quarter 2009 Results

TORONTO, August 13 2009 (TSX: SCP) � Sprott Resource Corp. (�SRC� or the �Company�) today announced its financial results for the three-and six-month periods ended June 30, 2009. The consolidated financial statements and related management's discussion and analysis can be found on SEDAR (www.sedar.com) and www.sprottresource.com.

Financial Highlights for Q2 2009 and Year to Date (�YTD�) 2009:

Consolidated Income Statements                             

Consolidated Balance Sheets                                    

 Operational Highlights for Q2 2009 and YTD:

• Investment portfolio grew to $40.7 million compared to $28.6 million at December 31, 2008. Growth was the result of net invested capital of $5.5 million and $6.6 million unrealized gains in the market value of the investments.
• One Earth Farms seeded 12,000 acres of crops at three First Nations farms in Saskatchewan, consisting of 2/3 canola and 1/3 wheat and barley. The fall harvest should begin in September and grain sales thereafter.
• Waseca Energy�s oil revenues (net of royalties) grew by 154% to $753 thousand from $296 thousand in the first quarter of 2009.

�We believe that the global economy will deteriorate further but will also be subject to extreme volatility. The Company�s strong cash balance securely positions us to take advantage of this period of prolonged economic weakness. As well, we aim to build value for our shareholders by focusing on long-term supply/demand trends within the resource sector and on building, financing and supporting our current subsidiaries,� said Kevin Bambrough, President and CEO of Sprott Resource Corp. �Since our overall economic outlook remains bearish, we will continue to maintain a conservative investment approach and seek to capitalize on pockets of strength.�

Financial Review

Working Capital

As at June 30, 2009, the Company had current assets of $240.8 million, consisting primarily of cash and cash equivalents ($73.5 million), Government of Canada T-bills ($98.5 million) and gold and silver bullion ($61.9 million). Current liabilities of $3.2 million consist of accounts payable and accrued liabilities ($3.0 million) and capital tax payable ($230 thousand).

Working capital decreased to $237.6 million from $246.2 million at December 31, 2008.  The decrease in working capital is a result of net purchases of public securities, the purchase of property, plant and equipment and operating losses at One Earth Farms and Waseca.

Net Assets

As at the end of Q2 2009, net assets increased to $291.3 million from $139.1 million at the end of Q2 2008 and from $284.8 million at the end of December 31, 2008. Net assets per share were $3.55 at June 30, 2009.

Net Revenue

Waseca�s oil sales are currently the Company�s only operating revenue. Net revenue for Q2 2009 was $753 thousand compared to nil in Q2 2008. 2009 YTD net revenue was $1.0 million compared to nil for the same period in the prior year.

Operating Expenses

Operating expenses, including general and administrative expenses, management fees, and incentive fees, for Q2 2009 increased to $4.0 million from $1.7 million in Q2 2008. Operating expenses increased to $7.2 million for the 2009 YTD period from $2.4 million in the prior year period. The increase in operating expenses is primarily related to the consolidation of Waseca and One Earth Farms and their expanding operations.

As at June 30, 2009, the Company had 82,007,224 common shares issued and outstanding.

About Sprott Resource Corp.

SRC is a Canadian based company, the primary purpose of which is to invest, directly and indirectly, in natural resources. Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. SRC is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting Limited Partnership ("SCLP"), of which Sprott Asset Management Inc. is the sole limited partner. Pursuant to a management services agreement between SCLP and SRC, SCLP provides day-to-day business management for SRC as well as other management and administrative services.

Forward Looking Statements

Certain statements contained herein may constitute "forward-looking statements" under  applicable securities laws. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "should", "believes", "plans", and similar expressions. These statements are based on current estimates, factors and assumptions, including expectations regarding the SRC's future strategy and business and the execution of its existing plans. These statements involve known and unknown risk. No assurance can be given that any events anticipated by the forward-looking statements will occur. Actual results and future events could differ materially from those expressed in, or implied by, the forward-looking statements. As a result, readers are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are made as at the date of this news release. SRC does not undertake any obligation to publicly update or revise any of these forward-looking statements, except as required by applicable securities laws.

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