Anoop Prihar anoopp@gmpsecurities.

com 416-943-6127 November 15, 2011

Raj Udayan Ray rray@gmpsecurities.com 416-941-6732

Sprott Resource Corp.1,7 (SCP-T)

Last: $4.70
WHATS CHANGED Rating Target NAV New nc $5.45 $5.55 Old BUY $5.85 $5.85

BUY Target: $5.45

SCP reports Q3/11 financial results

SCP offers significant energy exposure
As illustrated in Exhibit 1, we estimate that approximately 42% of SCPs net asset value consists of energy related investments. Of the four energy related investments, two are in public companies (Westfire Energy Ltd. and Guide Exploration Ltd), while Waseca Energy Inc. is currently reviewing strategic alternatives. Although we have not adjusted our Waseca carrying value, in the event the Company were to be sold, we believe the potential exists to add $0.15/sh. - $0.25/sh. to our SCP NAV.

Share Data Shares (mm, basic/f.d.) 52-week high/low Market capitalization (mm) Enterprise value (mm) Insider ownership Total projected return Net Asset Value (Y/E Dec. 31) One Earth Farms One Earth Oil and Gas Westfire Energy Ltd. Guide Exploration Ltd. Stonegate Agricom Ltd. Waseca Energy Inc. Cash and Short term investments Gold Bullion Other Investments Total Cash from Dilutive Securities Less: Fees Net Asset Value

112.8/113.2 $5.80/$3.35 $532.3 $502.0 9.1% 16.0%

$0.87 $0.10 $1.24 $0.45 $0.43 $0.61 $0.27 $1.17 $0.53 $5.66 $0.02 $0.22 $5.45

One Earth Farms commences 2011 harvest

During the quarter One Earth Farms (OEF) started harvesting its 2011 crop. By the end of Q3/11, approximately 69% of the harvest had been completed, but less than 10% of the crop had been sold. Managements strategy is to store the crop and sell as more favorable pricing environment emerges.

SCPs cash position remains strong

We currently estimate SCPs cash balance to be $30.2mm ($0.27/SCP share). On a MTM basis, SCPs gold bullion has a value of approximately $133mm ($1.17/SCP share). We believe that in the event a suitable investment opportunity were to arise, management would monetize its bullion position as a method of financing, should such a decision be required.

Incrementally decreasing target; no change to BUY rating.

2.5

SCP-TSX

$6.00 $5.50 $5.00 $4.50 Close Price

2.0

Volume in Millions

1.5

We currently estimate the SCP NAV to be $5.45/share ($5.85/share). We continue to remain constructive on the outlook for SCP, particularly given the trend in agricultural commodity prices and the Companys significant cash and near-cash balance. As such, we continue to rate SCP as a BUY.

1.0

$4.00 0.5 $3.50 $3.00 Apr-11 Nov-10 Sep-11 Feb-11 Mar-11 Jan-11 Jun-11 Oct-11 Jul-11 May-11 Nov-11

0.0

Prepared by GMP Securities L.P. See important disclosures on the last page of this report

Anoop Prihar anoopp@gmpsecurities.com 416-943-6127

Raj Udayan Ray rray@gmpsecurities.com 416-941-6732

UPDATING NET ASSET VALUE AND TARGET; NO CHANGE TO RECOMMENDATION

Exhibit 1. Sprott Resource Corp. Updated Net Asset Value
Asset One Earth Farms One Earth Oil and Gas Westfire Energy Ltd. Guide Exploration Ltd. Stonegate Agricom Ltd. Stonegate Agricom Ltd. Waseca Energy Inc. VA Uranium Holdings Cash and Short term investments Gold Bullion Investments - Public Investments - Private Total Warrants Options Ownership (%) 58.1% 88.2% 34.0% 18.2% 32.7% 81.3% 19.9% Cost $57,500 $11,000 $105,000 $45,627 $23,400 $44,200 $11,786 $75,392 GMP Value Estimate $98,622 $11,000 $139,894 $51,525 $47,381 $1,170 $68,899 $4,550 $30,237 $132,612 $4,133 $50,959 $640,981 $0 $1,751 $642,732 $12,820 $15,772 $614,140 Per Share $0.87 $0.10 $1.24 $0.45 $0.42 $0.01 $0.61 $0.04 $0.27 $1.17 $0.04 $0.45 $5.66 $0.00 $0.02 $5.68 $0.11 $0.11 $5.45 Valuation Method EV/EBITDA Book MTM MTM MTM MTM D. Adj. CF and EV/Flowing Book Book MTM Book Book

$373,905 $0 $1,751 $375,657

Less: Management fee Performance fee Net Asset Value

Source: Company reports and GMP estimates

ENERGY ACCOUNTS FOR LARGEST COMPONENT OF SCP NET ASSET VALUE

Subsequent to the release of the Q3/11 financial results, we have updated our SCP net asset value. As illustrated in Exhibit 1 above, currently approximately 42% of the SCP NAV consists of energy related investments. This exposure consists of four discrete components. First, SCP presently owns 13.2mm common shares of Westfire Energy (WFE-T) and 15.5mm non-listed, non-voting convertible shares, which may be converted into common shares so long as SCP does not own more than 19.9% of the WFE common shares. Recall that the SCP investment in WFE is a consequence of Orion Oil and Gas merging with WFE in May 2011. SCPs other public company investment in the energy sector consists of a 18.2% ownership position (15.5mm common shares) in Guide Exploration Ltd. (formerly Galleon Energy Inc.). SCPs average cost on this investment is $2.94/share and management has indicated that its ownership position is for investment purposes only. Waseca Energy is a private company involved in the exploration and production of oil and gas in Alberta and Saskatchewan. Waseca is currently in the process of completing a sixty-two well drilling program and currently has fifty four wells in production. As a consequence of this program, Wasecas production has increased from 1,543 boepd in Q2/11 to 2,522 boepd for Q3/11. The Company exited Q3/11 at a production rate of 2,978 boepd. Management currently estimates that Waseca will exit 2011

Anoop Prihar anoopp@gmpsecurities.com 416-943-6127

Raj Udayan Ray rray@gmpsecurities.com 416-941-6732

at a production rate of between 3,500 boepd and 3,700 boepd. This is noteworthy as on October 18th, SCP, which owns 81% of Waseca, announced that it was initiating a review of the strategic alternatives available to the Company. In addition, Waseca had retained RBC Rundle, a division of RBC Capital Markets, to assist with the process. From a valuation perspective, we currently estimate SCPs ownership position in Waseca to be worth approximately $69mm. This value is derived from an average of an EV/Flowing barrel and Debt Adjusted Cash flow methodolgies. Yesterday (Nov.14th) Twin Butte Energy (TBE-T) acquired Emerge Oil & Gas (EME-T) a heavy oil producer in the Lloydminster area and a comparable company to Waseca, in an all stock transaction. Applying the EME valuation to Waseca results in a value range of $85mm - $100mm, which in turn, would increase our SCP NAV by about $0.15/sh - $0.25/sh. Note that we have left our Waseca carrying value unchanged as at this juncture, we cannot adequately gauge the probability or timing of a strategic transaction. The last component of SCPs energy portfolio is One Earth Oil and Gas (OEOG). This Company is involved in developing oil and gas opportunities on First Nations and aboriginal land in Alberta and Montana. Year-to-date, OEOG has drilled five wells, with one well currently producing and a second well expected to begin production before year-end 2011. Year-to-date production has averaged 174 boepd with a Q3/11 exit rate of 200 boepd.

ONE EARTH FARMS COMMENCES HARVEST

One Earth Farms 2011 harvest began in August and was approximately 69% complete by the end of Q3/11. Having said this, it is important to note that less than 10% of the crop that was harvested at the end of Q3/11 had been sold. Managements strategy is to put the bulk of the crop into storage and opportunistically sell the crop as pricing becomes more favorable. For 2011, One Earth expects to farm 117,000 acres of crop land, 75,410 acres of pasture land and will have a cattle program consisting of 9,498 animals. During Q3/11 OEFs purchased 1213243 Alberta Ltd. (Farm Corp.) for total consideration of $12.1mm. This is a turnkey farming operation located east of Edmonton, Alberta, that consists of over 29,500 acres of farm land, $9.3mm of farm machinery, storage and equipment and an experienced workforce of 25 employees. The acquisition was paid for with cash. At the end of Q3/11 OEFs had approximately $4.5mm in cash and equivalents and is investigating the potential for business line financing based on fixed and other asset pledges.

SPROTT RESOURCE CORP. FINANCIAL CONDITION REMAINS SOUND

SCP continues to maintain a strong financial position. At the end of Q3/11 SCP had approximately $37.6mm in cash. However, subsequent to Q3/11, SCP repurchased 300,000 common shares at an average price of $3.87/sh under its normal course issuer bid. In addition, it also purchased an additional 2.1mm shares of Guide Exploration. As such, we currently estimate SCPs cash balance to be about $30.2mm. Note that these transactions are reflected in our SCP NAV. Finally, we would also note that SCP continues to own 73,971 ounces of gold bullion, which at current prices have a MTM value of about $133mm.

MAINTAINING TARGET; NO CHANGE TO BUY RATING

We currently estimate the SCP NAV to be $5.45/share. We continue to remain constructive on the outlook for SCP, particularly given the prevailing trend in agricultural commodity prices and the Companys significant cash and near-cash balances. As such, we continue to rate SCP as a BUY.

Anoop Prihar anoopp@gmpsecurities.com 416-943-6127

Raj Udayan Ray rray@gmpsecurities.com 416-941-6732

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