Sprott Resource Corp.

Sprott Resource Corp. invests in businesses in the natural resource sector. We are a dynamic, entrepreneurial company dedicated to generating consistently superior returns on capital for our shareholders, while focusing on risk management and real wealth preservation.

Our investment approach is driven, first and foremost, by our assessment of global economic trends as they relate to various natural resource sectors. Individual commodity markets are diligently investigated to assess short and long-term supply/demand characteristics. We monitor and analyze these trends and characteristics to determine where and when to allocate our capital. We then seek out specific investments that will benefit the most from favourable trends.

We understand that all markets are cyclical and, as such, we will seek to invest our capital during cycle lows and in turn lower our risk profile when profit margins and market multiples appear to be unsustainably high.

The size, type and structure of investment will depend on the opportunity and will be designed to maximize our return on a risk-adjusted basis. Structures will include controlled subsidiaries, direct commodity purchases, joint venture/option agreements and minority investments in both private and public companies. Large investments will normally be made in established, lower cost producing companies. Smaller investments will typically be made in grassroots exploration and in seeding new ventures.

Our management services agreement with Sprott Consulting Limited Partnership, of which Sprott Asset Management Inc. is the sole limited partner, and our location in Toronto, a global centre for resource investing, gives us access to exceptional investment opportunities and a vast network of contacts and potential strategic partners. We leverage these relationships to grow and add value to our investments.