Sprott Resource Corp. Announces 34% Increase in Proved + Probable Reserves of Orion Oil & Gas Corporation

TORONTO, Jan. 24 - Sprott Resource Corp. ("SRC") announced today that Orion Oil & Gas Corporation ("Orion") (TSX:OIP), which is 78.9% owned by SRC on an undiluted basis, has announced today the results of its 2010 year-end oil and gas reserves evaluation conducted by GLJ Petroleum Consultants ("GLJ") and Sproule Associates Limited ("Sproule") as at December 31, 2010.

Highlights for year-end 2010 compared to year-end 2009 include:

• Proved reserves of 16.3 million ("MM") boe, an increase of 32%
• Proved plus Probable ("2P") reserves of 24.8 MMboe, an increase of 34%
• Oil and liquids account for 48% of 2P reserves
• Net Present Value of 2P reserves (discounted at 10% before tax) increased 32% ($106 MM), to $439 MM
• 2P reserve life index of approximately 12.6 years based on estimated fourth quarter 2010 production
• 2P Reserve Replacement Ratio of approximately 490% (see note 5)

Orion Oil and Gas Reserves

The tables below summarize certain information contained in the independent reserves reports prepared by GLJ and Sproule as of December 31, 2010 (collectively, the "Reports"). The information relating to reserves and the associated Net Present Value of Orion's Beaverhill Lake (Kaybob), Bigstone and Redwater properties was prepared by GLJ.  The information relating to reserves and associated Net Present Value of Orion's Redwater North property was prepared by Sproule.  Orion retained Sproule to continue its evaluation of the Redwater North acquisition which Orion announced in December 2010.

The Reports were prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). The Net Present Values included in the table below were based on price forecasts, effective January 1, 2011, provided by GLJ and Sproule, as applicable.

Additional reserve information in respect of Orion's reserves, as required under NI 51-101, will be included in SRC's Annual Information Form (the "AIF"), which will be filed prior to March 31, 2011 following approval by SRC's board of directors.  The AIF will also incorporate SRC's oil and gas interests held through SRC's other subsidiaries, Waseca Energy Inc. and One Earth Oil & Gas Inc.

Summary of Orion Oil and Gas Reserves - Forecast Prices and Costs

Notes:

The following table sets forth the Net Present Value of estimated cash flows attributed to Orion's reserves as set forth in the Reports, both before and after deducting income taxes, and prior to general and administrative expenses.

Net Present Value of Orion Reserves - Forecast Prices and Costs

Price Forecast

The GLJ and Sproule price forecasts used in the Reports are summarized below:

GLJ - $US/$CDN exchange rate assumed to be $0.98.  Inflation rate assumed to be 2.0% per year.

Sproule - $US/CDN exchange rate assumed to be $0.932.  Inflation rate assumed to be 1.5% per year.

On a Net Present Value basis (10% discount rate, before tax), approximately 79% of the value of reserves is attributable to the Kaybob area (including Bigstone) and 21% is attributable to the Redwater area (including Redwater North).

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 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. For more information, please visit www.sprottresource.com.

Cautionary Statements

Certain information contained in this press release constitutes forward-looking information or statements. Forward-looking information and statements are often, but not always, identified by the use of words such as "anticipate", "seek", "believe", "expect", "hope", "plan", "intend", "forecast", "target", "project", "guidance", "may", "might", "will", "should", "could", "estimate", "predict" or similar words or expressions suggesting future outcomes or language suggesting an outlook.  Statements relating to "reserves" and "resources" are forward-looking information as they involve the implied assessment, based on certain estimates and assumptions that, among others, the reserves and resources described exist in the quantities predicted or estimated. By their very nature, forward-looking information and statements involve inherent risks and uncertainties, both general and specific, and risks that predictions, forecasts, projections and other forward-looking information and statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to vary materially from the forward-looking information or statements. These factors include, but are not limited to: the volatility of oil and gas prices; production and development costs; capital expenditures; the imprecision of reserve and resource estimates and estimates of recoverable quantities of oil, natural gas and liquids; the ability to replace and expand oil and gas reserves; environmental claims and liabilities; incorrect assessments of value when making acquisitions or dispositions; increases in debt service charges; the loss of key personnel; the marketability of production; defaults by third party operators; unforeseen title defects; fluctuations in foreign currency and exchange rates; inadequate insurance coverage; compliance with environmental laws and regulations; changes in tax and royalty laws; the ability to access external sources of debt and equity capital; and the ability to obtain equipment in a timely manner to carry out development activities. Further information regarding these factors may be found under the headings "Risks Relating to the Oil and Gas Business" and "Oil and Gas Industry Overview" in SRC's most recent Annual Information Form available under the SRC's profile on SEDAR (www.sedar.com). Readers are cautioned that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to SRC, investors and others should also carefully consider information set forth in the section "Forward-Looking Statements" of SRC's most recent Annual Information Form respecting the assumptions upon which SRC bases certain forward-looking information and the uncertainties inherent in such assumptions. SRC does not assume responsibility for the accuracy and completeness of the forward-looking information or statements and such information and statements should not be taken as guarantees of future outcomes. Subject to applicable securities laws, SRC does not undertake any obligation to revise these forward-looking information or statements to reflect subsequent events or circumstances. Furthermore, the forward-looking information contained in this press release are made as of the date of this document and SRC does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. The forward-looking information and statements contained in this press release are expressly qualified by this cautionary statement.

For the purposes of this press release, boe has been calculated on the basis of six thousand cubic feet of gas to one barrel of oil. The term boe may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet to one barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.

For further information:

Stephen Yuzpe
Chief Financial Officer
Tel: (416) 977-7333
Fax: (416) 977-9555

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