TORONTO, March 28 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or the "Company") today announced that it has filed its annual audited financial statements for the twelve month period ended December 31, 2010 and related management discussion and analysis, as well as its Annual Information Form, which includes its Statement of Reserves Data and Other Oil and Gas Information.  All filings can be found on SEDAR.

"In 2010, we continued to create value for our shareholders through investments in agriculture, energy and precious metals," said Kevin Bambrough, President and CEO of Sprott Resource Corp. "With the fragile economic recovery being threatened by devalued currencies and geopolitical instability, investor interest in hard assets as a store of wealth has never been higher. We believe we are well positioned to deliver value to our shareholders through our growing portfolio of resource focused companies and investments."

"We are pleased with the progress of our investments and subsidiaries during the year and are committed to continuing to invest in their future growth," continued Mr. Bambrough. "We added to our investments in the energy and agriculture sectors through One Earth Oil & Gas and Union Agriculture. The value of our gold bullion holdings continues to appreciate year over year and as a result of our successes, investors responded by exercising nearly all of our outstanding share purchase warrants for more than $67 million in proceeds. With our well capitalized balance sheet, we are positioned to continue funding our current investments and pursue new accretive business opportunities."

Achievements by SRC Subsidiaries in 2010 (and subsequent to year-end):

Orion Oil and Gas Corporation ("Orion")

• Increased proved reserves by 32% to 16.3 million boe and proved and probable (2P) reserves by 34% to 24.8 million boe
• Exit production rate increased year over year by 140% to approximately 6,000 boe/d
• Net present value (NPV) of 2P reserves (discounted at 10% before tax) increased 32% ($106 million) to $439 million

Waseca Energy Inc. ("Waseca")

• Increased proved reserves by 207% to 2.34 million boe and 2P reserves by 316% to 4.67 million boe
  
• Exit production rate increased year over year by 110% to approximately 1,050 bbl/d
  
• NPV of 2P reserves (discounted at 10% before tax) increased 295% ($81.4 million) to $109 million

One Earth Farms Corp. ("One Earth Farms")

• Farmed 35,100 acres of crop land, 23,730 acres of pasture land and custom farmed 8,554 acres
• Increased 2011 land under management to approximately 200,000 acres (110 - 150,000 acres of crop land and 75 - 100,000 acres of pasture land); positioning One Earth Farms to be the largest operating farm in Canada in 2011.
• Subsequent to year end, the Company exercised its remaining 20 million One Earth Farms warrants, which increased its ownership in One Earth Farms to 80% and the invested capital to $57.5 million. On March 17, 2011, One Earth Farms completed the first tranche of a $35 million private placement to outside shareholders. The first tranche of the private placement consisted of the issue and sale of 22.2 million common shares at $1.40 per share for aggregate gross proceeds of approximately $31.1 million. One Earth Farms expects to close a second tranche for an additional 2.8 million common shares, resulting in aggregate gross proceeds for the private placement of $35 million. As a result of these transactions, the Company's interest in One Earth Farms will decrease to approximately 60% on an undiluted basis.

Stonegate Agricom Inc. ("Stonegate Agricom")

• Successfully completed Initial Public Offering raising $51.75 million for the development of the Mantaro deposits in Peru and the Paris Hills phosphate deposit in Idaho
• Commenced drilling on Paris Hills deposit and, subsequent to year-end, at Mantaro deposit
• SRC sold 25 million shares of Stonegate Agricom subsequent to year-end by way of a secondary offering for gross proceeds of $43.7 million. As at December 31, 2010, the Company's book value of the shares sold was approximately $10.6 million.

One Earth Oil & Gas Inc. ("OEOG")

• Entered into joint venture and lease agreements with First Nations and private companies in Canada and the United States and has commenced exploration drilling under these agreements

SRC Unconsolidated Year-end 2010 Financial Highlights

• The Company continues to maintain a strong balance sheet as highlighted in the table below.

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.

Forward Looking Statements

This news release includes certain forward-looking statements, including statements regarding reserves. Statements relating to "reserves" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the reserves described can be profitably produced in the future.  These factors and assumptions include, among others: historical production in the area compared with production rates from similar producing areas; future commodity prices, production and development costs, royalties and capital expenditures; initial production rates; production decline rates; ultimate recovery of reserves; success of future exploitation activities; marketability of production; effects of government regulation; and other government levies that may be imposed over the producing life of reserves.

All forward-looking information is inherently uncertain and subject to a variety of risks, uncertainties and other factors that may cause SRC's actual results, performance or achievements to be materially different from those expressed or implied from such information, including: fluctuation in market prices for petroleum and natural gas; fluctuations in foreign exchange rates; changes in laws and regulations; geological, technical, drilling and processing problems and other difficulties in producing petroleum and natural gas reserves; uncertainties associated with estimating petroleum and natural gas reserves; and risks associated with oil and gas operations generally.

SRC has attempted to identify important factors that could cause its actual results, performance and achievements to differ materially from those contained in forward-looking statements. However, there can be other factors that cause results, performance and achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking statements and the information contained therein. SRC does not intend, and does not assume any obligation, to update these forward-looking statements except as required by law.

Barrels of Oil Equivalent

Where amounts are expressed in a barrel of oil equivalent ("boe"), or barrel of oil equivalent per day ("boe/d"), natural gas volumes have been converted to barrels of oil equivalent on the basis that 6 thousand cubic feet ("mcf") is equal to one barrel of oil. Use of the term boe may be misleading, particularly if used in isolation. This boe conversion ratio is based on an energy equivalence methodology, and does not represent a value equivalency. Indeed, the energy and value relationships may differ widely with market conditions. The conversion conforms to the Canadian Securities Regulators' National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.