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					   BopnbJpvt Jowftunfout                                                                                                                     BJ
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     INITIAL REPORT
     NOVEMBER 30, 2009




     Sprott Resource Corp.
     As Good As It Gets: An Unparalleled Investment in the Natural Resources Sector

     A Core Holding: Buy for Long-Term Investment in Commodities
     (Canada: TSX: SCP, C$3.79; US: SCPZF, US$3.60)


                                             Investment Summary


      DASHBOARD                              1.       World-Class Management Team & Board of Directors
      Company Name:
      Sprott Resource Corp.                           -    Extremely well-respected & successful team from Sprott Asset Management.
      Symbol:
                                                      -    Management team heavily invested in company & incentivized to perform.
      Canada: SCP
      US: SCPZF                              2.       Private Equity-Like Investment Opportunities in a Public Company
      Current Price:
      (Nov 27, 2009)
                                                      -    Merchant banking capabilities to bring private companies to the public markets.
      Canada: C$ 3.79
                                                      -    Value creation through incubator capability & strategic partnering.
      US: US$ 3.60

      No. of Shares:                         3.       Demonstrated Value Creation Expertise – PBS Coals Transaction
      O/S: 96.8 Million
      FD: 113.6 Million                               -    PBS Coals transaction a huge success: 338% return & $185 million profit in 1 year.

      Market Cap:                            4.       Highly-Diversified Portfolio of Natural Resource Assets
      (Nov 27, 2009)
      Canadian: C$ 367 Million                        -    Oil & Gas, Gold & Silver Bullion, and Agriculture.
      US: US$ 348 Million
                                                      -    Mix of both public & private assets.
      Performance (1-Year):

                                             5.       Extremely Strong Financial Position, No Debt & Liquid Balance Sheet

                                                      -    Cash & cash equivalents of C$ 67 million (US$ 64 million).

                                                      -    Gold & silver bullion holdings of C$ 88 million (US$ 84 million).
      Avg. Daily Volume:
                                                      -    Additional short-term investments (Canadian T-Bills) of C$ 76 million (US$ 72 million).
      TSX: 338,800 shares

      Exch Rate (Nov 27, 2009):              6.       Catalyst #1: One Earth Farms, Corp.
      C$ 1.00 = US$ 0.9498
                                                      -    Goal: To become one of the largest corporate farms in the world.
      Company Description:
      Sprott Resource Corp is a
                                                      -    Currently a private company. Huge opportunity to take public within a few years.
      Canadian based company
      whose primary purpose is to            7.       Catalyst #2: Orion Oil & Gas - Recent Private-Equity Like Transaction
      invest, directly and indirectly,
      in natural resources.                           -    Recent private-equity like transaction - potential for another home run.
      Website:
                                                      -    Value creation opportunity through production growth, accretive acquisitions, taking
      www.sprottresource.com
                                                           the company public, and eventually, a likely sale to a strategic buyer.

Independent Insight Solving Information Asymmetries                                                                     www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                                                                November 30, 2009




                                      Table of Contents



                                      I. Executive Summary ....................................................................................................................2 
                                      II. Natural Resources: The Investment Opportunity .....................................................................3 
                                            A. Commodities based on Supply & Demand ......................................................................3 
                                            B. Commodities as a Financial Investment ...........................................................................4 
                                            C. Energy ..............................................................................................................................7 
                                            D. Gold & Precious Metals ..................................................................................................10 
                                            E. Agriculture ......................................................................................................................13 
                                      III. Company Profile .....................................................................................................................16 
                                           A.  Company Description ..................................................................................................16 
                                           B.  Corporate Structure .....................................................................................................16 
                                           C.  Corporate Strategy ......................................................................................................17 
                                           D.  Investment Approach ..................................................................................................18 
                                           E.  General Development & Timeline of Business ............................................................18 
                                           F.  Recent Corporate History ............................................................................................19 
                                           G.  PBS Coals Transaction: Example of Valuation Creation .............................................22 
                                           H.  Management & Directors ............................................................................................23 
                                           I.  Capital Structure ...........................................................................................................26 
                                           J.  Major Shareholders ......................................................................................................27 
                                      IV. Major Assets & Projects .........................................................................................................28 
                                           A.  One Earth Farms Corp. ................................................................................................28 
                                           B.  Gold & Silver Bullion Holdings ....................................................................................31 
                                           C.  Orion Oil and Gas Ltd. ................................................................................................32 
                                           D.  Stonegate Agricom Ltd. ..............................................................................................34 
                                           E.  Waseca Energy Ltd. .....................................................................................................37 
                                           F.  Other ............................................................................................................................37 
                                      V. Financial Analysis & Valuation .................................................................................................38 
                                           A.  Financial Analysis .........................................................................................................38 
                                           B.  Valuation ......................................................................................................................40 
                                      VI. Risks .......................................................................................................................................42 
                                      VII. Conclusion ............................................................................................................................46 
                                      VIII. Appendices ..........................................................................................................................47 
                                           A.  Financial Statements ....................................................................................................47 
                                           B.  Board of Directors........................................................................................................50 
                                           C.  Sprott Asset Management Overview ..........................................................................52 
                                      IX. Disclaimer & Disclosures ........................................................................................................53 
                                          A.  Disclaimer ....................................................................................................................53 
                                          B.  Disclosures ...................................................................................................................53 
                                      X. Anomalous Investments ..........................................................................................................54 
                                             A. Company Profile .............................................................................................................54 
                                             B. Contact Details ..............................................................................................................54 




Anomalous Investments                                                      1                                                          www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                            November 30, 2009




                                      I. Executive Summary


                                      Sprott Resource Corp (“SRC”, the “Company”) is a unique, Canadian public company which
                                      invests directly and indirectly in natural resources. The investment merits of the company
                                      include the following:


                                      A.     World-Class Management Team & Board of Directors

                                                 Extremely well-respected & successful team from Sprott Asset Management.

                                                 Management team heavily invested in company & incentivized to perform.

                                      B.     Private Equity-Like Investment Opportunities in a Public Company

                                                 Merchant Banking capabilities to bring private companies to the public markets.

                                                 Value creation through incubator capability & strategic partnering.

                                      C.     Demonstrated Value Creation Expertise – PBS Coals Transaction

                                                 PBS Coals transaction a huge success: 338% return & $185 million profit in 1 year.

                                      D.     Highly-Diversified Portfolio of Natural Resource Assets

                                                 Oil & Gas, Gold & Silver Bullion, and Agriculture.

                                                 Mix of both public and private assets.

                                      E.     Extremely Strong Financial Position, No Debt & Liquid Balance Sheet

                                                 Cash & Cash Equivalents of C$ 67 million (US$ 64 million).

                                                 Gold & silver bullion holdings of C$ 88 million (US$ 84 million).

                                                 Additional short-term investments (Canadian T-Bills) of C$ 76 million (US$ 72 million).

                                      F.     Catalyst #1: One Earth Farms, Corp.

                                                 SRC sees agriculture as one of the best opportunities in the natural resources sector.

                                                 Goal: To become one of the largest corporate farms in the world.

                                                 SRC, in partnership with the First Nations in Canada, has created a unique company
                                                  which could revolutionize the farming business in Canada. SRC has secured access
                                                  to, and intends to develop, 1,000,000 acres of farmland. This scale is
                                                  unprecedented.

                                      G.     Catalyst #2: Orion Oil & Gas - Recent Private-Equity Like Transaction

                                                 The potential for another home run in the energy sector.

                                                 Led by a highly accomplished team which already has one, multi-billion dollar
                                                  transaction to its credit.

                                                 Value creation opportunity through production growth, accretive acquisitions, taking
                                                  the company public, and eventually, a likely sale to a strategic buyer.


                                      For the reasons above, and numerous others, SRC represents an unparalleled investment
                                      opportunity in the natural resource sector, and should be a core, long-term investment for
                                      investors looking for exposure to commodities.




Anomalous Investments                                            2                                      www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                       November 30, 2009




                                      II. Natural Resources: The Investment Opportunity


                                      Due to the unstoppable growth in global population, supply & demand fundamentals, and
                                      commodities increasingly becoming financial investments, the investment opportunities in the
                                      natural resources sector over the next decade are excellent.

                                      A. Commodities based on Supply & Demand

                                      Commodities, including oil, gas, metals and food are fundamental to growth and economic
                                      prosperity, and due to population growth, the fundamentals are in place for a long-term boom
                                      in the commodities sector.


                                      Population Growth


                                      In early 2009, the United Nations (“UN”) projected that the global population will exceed 9
                                      billion by 2050, which is 35% above the current level of 6.8 billion.

                                      The global population in 2009 population is already 313 million more than in 2005, and by early
                                      2012, world population is projected to already reach 7 billion.

                                      The table below shows the UN’s global population projections through 2050.



                                                                  EXHIBIT: WORLD POPULATION THROUGH 2050




                                      It is worth noting that most of the additional 2.3 billion people by 2050 will come from
                                      developing countries. The UN projects that population in developing counties is going to rise
                                      from 5.6 billion in 2009 to 7.9 billion in 2050, as is shown in the following chart.




Anomalous Investments                                         3                                     www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                        November 30, 2009



                                                  EXHIBIT: FORECASTED POPULATION THROUGH 2050 BY TYPE OF COUNTRY




                                                               Sourc e: UN (2009)




                                      Within the developing world, Asia, the Middle East and Africa are projected to see the largest
                                      growth, as is shown in the following table.



                                                       EXHIBIT: FORECASTED POPULATION THROUGH 2050 BY REGION




                                                              Sourc e: UN (2009)




                                      The relentless growth in global population will provide an upward bias to the demand for
                                      natural resources over the next decade and beyond.

                                      B. Commodities as a Financial Investment


                                      Hedge Against US Dollar Weakness


                                      Notwithstanding the US government’s official “strong dollar” policy, since 2001, the US Dollar
                                      has been on a steadily falling trajectory, having declined by 37% on a trade weighted basis.
                                      The chart below shows the US Dollar Index (USDX) since 2000.




Anomalous Investments                                          4                                    www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                          November 30, 2009



                                                                   EXHIBIT: US DOLLAR INDEX (USDX) 2000 – 2009



                                                                               US Dollar Index (USDX)




                                      Commodities, including oil, gold and agriculture, are denominated in USD, and as such,
                                      provide a partial hedge against the declining USD.


                                      Hedge Against US Fiscal Outlook


                                      According to the Updated Budget and Economic Outlook published in August 2009, the US
                                      Congressional Budget Office (“CBO”) estimated that the federal budget deficit for 2009 will
                                      total $1.6 trillion, which, at 11.2 percent of gross domestic product (GDP), will be the highest
                                      since World War II.

                                      This 2009 deficit figure results from a combination of weak revenues and elevated spending
                                      associated with the economic downturn and financial turmoil. It is boosted by various federal
                                      policies implemented in response, including the stimulus legislation and aid for the financial,
                                      housing, and automotive sectors.

                                      Importantly, looking forward, the CBO has also updated its baseline projections for the coming
                                      decade (2010 – 2019).

                                      As is shown in the following table, the cumulative deficit from 2010 – 2019, under some
                                      reasonably optimistic assumptions, is projected to be a staggering US$ 7.1 trillion.



                                                            EXHIBIT: CBO BASELINE BUDGET OUTLOOK 2009 - 2019




Anomalous Investments                                          5                                        www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                                           November 30, 2009



                                      Assuming the economy improves and spending related to the financial rescue and the
                                      economic stimulus package falls off, the deficit is projected to gradually diminish over time. By
                                      2013, it would amount to 3.2 percent of GDP (about the same level as in 2008), under the
                                      assumption that various tax provisions expire as scheduled and that discretionary spending
                                      rises at the rate of inflation. Between 2013 and 2019, deficits are projected to range from 3.1
                                      percent to 3.4 percent of GDP, well above the 2.4 percent of GDP that they have averaged
                                      over the past 40 years.

                                      The following exhibit shows historical government revenues and outlays dating back to 1969,
                                      and, projections for the next 10 years. It is clear from the chart that the current situation is
                                      historically significant, and even under optimistic assumptions, the picture for the next 10 years
                                      is not good.



                                                           EXHIBIT: CBO – TOTAL REVENUES AND OUTLAYS (1969 – 2019)




                                      Amidst these persistent deficits, the path of least resistance for the US government is to print its
                                      way out of the problem, namely through inflation. Natural resources provide an effective
                                      hedge.

                                      Additionally, amidst these chronic deficits by the US, the US Dollar’s privileged position as the
                                      world’s “reserve currency” is being openly questioned.

                                      Many of the most respected economists in the world have joined the chorus.



                                                    “The dollar is in trouble. That’s clear, and it’s been true for a while”.
                                                   - Joseph E. Stiglitz, Nobel Laureate & former Chief Economist of the World Bank, October 2009




                                      In 2009, there has also been an increasing chorus of anti-dollar rhetoric coming from countries
                                      worldwide, most notably China, but also including Russia, France, Korea, Brazil and Japan.

                                      China has been especially vocal, and on several occasions, has launched high-profile criticism of
                                      the dominant role of the US Dollar as a global reserve currency. As an example, in an essay
                                      entitled Reform the International Monetary System posted on the People’s Bank of China
                                      website in March 2009, Central Bank Governor Zhou Xiaochuan openly questioned the US
                                      dollar’s central role. Mr. Zhou said the goal would be to create a reserve currency “that is
                                      disconnected from individual nations and is able to remain stable in the long run, thus
                                      removing the inherent deficiencies caused by using credit-based national currencies”.

                                      Once again, commodities, which are denominated in US dollars, provide an effective hedge
                                      against USD weakness.


Anomalous Investments                                             6                                                 www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                         November 30, 2009



                                      Growing Interest to Institutional Investors


                                      Lastly, over the past few years, commodities have received increasing interest from institutional
                                      investors.

                                      A short-list of investors include George Soros, PIMCO, Blackrock, and pension funds such as
                                      CALPERS and TIAA-CREF.

                                      It is also noteworthy that widely-known hedge fund managers such as Tudor Investment
                                      Company and Paulson & Co. have increasingly become bullish on natural resources, and gold
                                      in particular.

                                      C. Energy

                                      Energy is a fundamental pre-condition to economic growth, and as the global economy, and
                                      particularly the developing world, continue their rapid ascent, energy will become increasingly
                                      valuable.


                                      Energy Demand Projections


                                      According to the International Energy Agency (IEA) in its World Energy Outlook 2009 (WEO),
                                      world primary energy demand is projected to increase by 1.5% per year between 2007 and
                                      2030, from just over 12,000 million tonnes of oil equivalent (Mtoe) to 16,800 Mtoe – an overall
                                      increase of 40%.



                                                    EXHIBIT: WORLD PRIMARY ENERGY DEMAND, BY TYPE, THROUGH 2030 (IEA)




                                                           World Primary Energy Demand, By Type, through 2030




                                                  Source:  IEA, World Energy Outlook 2009




                                      The IEA’s most recent growth projections are despite a projected fall in global energy use in
                                      2009, the first time since 1981, caused by the financial and economic crisis. But, demand is set
                                      to resume its long-term upward trend once the economic recovery gathers pace.


                                      Growth Dynamics – Regional Perspective


                                      Collectively, non-OECD countries (i.e. developing countries) account for 93% of the increase in
                                      demand, with their share of global primary energy demand rising from 52% to 63%.

                                      China and India, alone, represent over 53% of incremental demand to 2030.




Anomalous Investments                                               7                                 www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                             November 30, 2009



                                      Coupled with strong growth from ASEAN, this is contributing to a refocusing of the global
                                      energy landscape towards Asia.



                                             EXHIBIT: WORLD PRIMARY ENERGY DEMAND, NON-OECD, CHINA & INDIA TO 2030 (IEA)


                                                             World Primary Energy Demand:  Reference Scenario




                                                   Source:  IEA, World Energy Outlook 2009




                                      This incremental demand is driven largely by the industrialization process, wherein developing
                                      countries consume more energy, per capita, as their economies develop. The following graph
                                      illustrates this dynamic.



                                                     EXHIBIT: OIL CONSUMPTION DURING PHASES OF INDUSTRIALIZATION




                                                                                    , US Global Investors




                                      Demand – By Type


                                      Fossil fuels are projected to remain the dominant sources of energy worldwide, accounting for
                                      77% of the demand increase in 2007-2030.

                                      Oil demand is expected to rise from around 85 million barrels per day in 2008 to 105 mb/d in
                                      2030, an increase of around 24%. In 2007-2030, demand for coal grows by 53% and demand
                                      for natural gas by 42%.




Anomalous Investments                                              8                                        www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                           November 30, 2009



                                               EXHIBIT: CHANGE IN PRIMARY ENERGY DEMAND, OECD & NON-OECD, 2007 – 2030



                                                  Change in primary energy demand in the Reference Scenario, 2007‐2030




                                                  Source:  IEA, World Energy Outlook 2009




                                      Global Oil Production


                                      Conventional oil production not belonging to the Organization of the Petroleum Exporting
                                      Countries (OPEC) is projected to peak around 2010 by the IEA.

                                      As a result, all of the incremental demand for oil will need to come from OPEC countries, which
                                      hold the bulk of the remaining conventional oil resources. This has significant implications for
                                      energy security, since OPEC countries are, in general, not the safest nor the most politically
                                      secure.

                                      The following exhibit illustrates global oil production projection to 2030.



                                                                 EXHIBIT: GLOBAL OIL PRODUCTION, 2000 - 2030 (IEA)



                                                       Global Oil Production:  Reference Scenario




                                                       Source:  IEA, World Energy Outlook 2009




                                      It is important to note that, in the chart above, the majority of the oil production forecast to
                                      come on-line through 2030 comes from “fields yet to be developed or found”, which means
                                      that it is assumed that new oil will be found and developed. This is a dangerous assumption
                                      considering the record of oil discoveries over the past two decades has not been good.




Anomalous Investments                                              9                                   www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                          November 30, 2009




                                      Implications on Climate Change


                                      The IEA’s Reference Scenario has profound implications for environmental protection, energy
                                      security and economic development, and importantly, the continuation of current trends would
                                      have dire consequences for climate change. These trends would also exacerbate ambient air
                                      quality concerns, thus causing serious public health and environmental effects, particularly in
                                      developing countries. However, until adequate alternative energies in sufficient quantities are
                                      developed, oil, natural gas, coal and other fossil fuels will continue to dominate.




                                      D. Gold & Precious Metals

                                      In its authoritative Gold Yearbook 2009, the CPM Group notes that gold, which has played a
                                      monetary role for centuries, appears to be enjoying a rehabilitation of its historical role as a
                                      financial asset, as investors look toward safe haven assets in these volatile times.

                                      Gold, which is now in its 9th consecutive year of historically high investment demand for gold, is
                                      undergoing a secular upward move in both investor interest and prices.


                                      1. Price Trend


                                      Since the early part of this decade, the gold price has been on a steady, consistent upward
                                      trend from prices below US$ 300/oz to current levels, in November 2009, above of US$1,150.

                                      The reasons for gold’s relentless upward trend are too numerous to list in this report, but the
                                      following graphic created by US Global Investors, one of the leading fund managers in the
                                      precious metals industry, encapsulates some of the factors.



                                                                  EXHIBIT: FACTORS INFLUENCING HIGHER GOLD PRICES




                                             Source:  US Global Investors




Anomalous Investments                                                10                                www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                        November 30, 2009



                                      The chart below shows the 8-year trend in gold prices, dating back to November 2001, and
                                      clearly highlights the strong, consistent upward trend in the gold price during this decade.



                                                   EXHIBIT: GOLD PRICE, LONDON FIX, NOVEMBER 2001 – NOVEMBER 2009




                                      2. Supply & Demand (Declining Production)


                                      An additional factor pushing gold prices upward is the fact that global gold mine production
                                      has been declining for the better part of this decade, as well.

                                      The following exhibit illustrates world gold mine production from 1850 to 2009. It is clear from
                                      the chart that production peaked around 2000 – 2001, and has been declining since.



                                                              EXHIBIT: WORLD MINE PRODUCTION, 1850 – 2009




Anomalous Investments                                         11                                     www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                           November 30, 2009




                                      3. Central Bank Purchases



                                      Central banks are increasingly becoming buyers of gold, as the yellow metal reclaims it status
                                      as a ‘safe haven’ asset.



                                      China’s Recent Disclosure of Gold Purchases Since 2003


                                      One of the important dynamics of the current gold bull market has been central bank buying,
                                      and a defining moment occurred in April 2009, when the Chinese government announced that
                                      it had been accumulating gold for more than 5 years, unbeknownst to the international
                                      community.

                                      In April, China announced that it had been steadily increasing its gold reserves since 2003, and
                                      over that period of time, it had increased its gold reserves by 454 metric tons.

                                      Given China’s massive foreign currency reserves - totaling approximately $ 2 trillion – most of
                                      which is denominated in US Dollars, and the continuing declining trend of the USD, it is highly
                                      likely that the Chinese will continue to be a sizeable buyer of gold over the next years.



                                      Other Central Banks


                                      The Chinese are certainly not the only Central Banks purchasing gold.

                                      In October 2009, the Indian government announced to the international community that it was
                                      the willing buyer of 200 metric tons of gold from the IMF.

                                      More recently, the Sri Lankan Central Bank has been a buyer, and it is widely believed that
                                      other central banks, most notably Asian Central banks (e.g. Korea) with large foreign currency
                                      reserves, have also been big buyers.

                                      In view of widespread forecasts of further declines in the value of the US dollar, it does not
                                      surprise investment professionals and economists that there should be a growing desire by
                                      global central banks to diversify away from the greenback.

                                      Lower demand for dollars makes sense to central bankers in countries such as Japan, which is
                                      no longer trying to control its exchange rate vis-a-vis the US dollar, and is no longer inclined to
                                      buy greenbacks to support the dollar's value.

                                      Similarly, it should be expected that oil exporting countries would want to hold less US dollars,
                                      and because of their historical affinity for precious metals, would be buyers of gold.




Anomalous Investments                                          12                                      www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                        November 30, 2009




                                      E. Agriculture


                                      According to a recent research report by Standard Chartered Bank entitled The End of Cheap
                                      Food, significant increases in food demand in emerging markets, coupled with increasing
                                      constraints on the ability to grow more crops, will make food scarcity a more pressing issue
                                      around the world. This will, in turn, lead to sustained food price rises, and deepen food
                                      security issues throughout the world, particularly in developing counties.



                                      Food Demand


                                      The UN Food and Agriculture Organization (“FAO”) estimates that food demand will rise 70%
                                      globally by 2050, and double in developing countries. This growth is driven by population
                                      growth, as well as rising incomes and urbanization.

                                      The projections show that cereal output will need to rise by almost 1 billion tonnes (43%) and
                                      meat output by over 200 million tonnes (mt) (74%) to 470mt.

                                      Meeting the needs of the changing composition & volume of food demanded will be a key
                                      challenge for policy makers and the agricultural production sector.



                                                       EXHIBIT: PROJECTED AGRICULTURAL PRODUCTION, CEREALS & MEAT, TO 2050




                                             Sourc e: FAO (2009)




                                      Arable Land Decline


                                      Over the past 50 years, widespread development and growing population have led to a
                                      decreasing amount of farmland per person.




Anomalous Investments                                              13                                www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                            November 30, 2009



                                      According to data from the United Nations, in 1960, there were 1.1 acres of arable land per
                                      capita, globally. By 2000, it had fallen to 0.6 acres per capita. By 2030, it will be closer to 0.5
                                      acres per capita, as is shown in the following chart.



                                                   EXHIBIT: ARABLE LAND PER CAPITA WORLDWIDE, 1960 – 2030 (PROJECTED)




                                      Food Security


                                      Over the past couple of years, food security has become an increasingly important issue on the
                                      global stage.

                                      Amid decreasing arable land and global food prices remaining high, the number of people
                                      suffering from hunger has been growing relentlessly in recent years, causing global concern
                                      over food insecurity. The developing world and Asia are particularly impacted, and world
                                      leaders have become so concerned, that a Food Security Summit was convened in November
                                      2009.

                                      The global economic crisis has aggravated poverty & the food crisis, and the FAO has
                                      estimated that the number of hungry people could increase by more than 100 million in 2009,
                                      surpassing the 1 billion mark.

                                      Potential food security issues for the upcoming year (i.e. 2010) have been top news stories in
                                      Asia in the second half of 2009, largely because of severe droughts and typhoons in the region,
                                      with the Philippines (the world's largest rice importer) already scurrying to secure rice supplies
                                      for 2010.

                                      In short, 2010 might be an interesting year in the agriculture markets.


                                      Increasing Investor Interest in Agriculture


                                      Over the past few years, hedge fund gurus like George Soros, investment powerhouses like
                                      BlackRock, and retirement plan giants like TIAA-CREF have begun to plow money into
                                      agriculture and farming.




Anomalous Investments                                          14                                       www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                             November 30, 2009



                                      A small sampling of increasing interest in agriculture includes the following.


                                            China, in 2008, announced that it had a $ 5 Billion plan to develop agricultural assets in
                                             Africa, because it needed to increase food security for its own people.

                                            South Korea’s Daewoo Corporation announced a massive, $6 Billion deal in late 2008, to
                                             lease roughly half of the arable land in Madagascar, which amounts to a piece of land
                                             almost twice the size of the State of Delaware in the US.

                                            George Soros has reportedly made a large investment in Argentine agribusiness company
                                             called Adecoagro, which owns 650,000 acres of farmland in Argentina, Brazil and Uruguay.

                                            Calpers, the world’s largest pension fund, has reportedly earmarked $ 300 million for
                                             investment in the agriculture industry.

                                            Lord Jacob Rothschild acquired a 24% stake in Brazilian venture Agrifirma.

                                            In November 2009, Pharos Financial Advisors, a specialist investment manager out of
                                             Dubai, run by a former Soros Management executive, set up a $350 million private equity
                                             fund focused on acquiring and operating farmland in East Europe, Eurasia and Africa.




                                      Summary


                                      With growing global population, declining arable land and escalating food security issues,
                                      governments, sovereign wealth funds, and indeed, institutional investors, are likely to make
                                      agriculture an exciting investment opportunity over the next decade or more.




Anomalous Investments                                           15                                      www.anomalousinvestments.com
Sprott Resource Corp. – As Good As It Gets                                                                           November 30, 2009




                                      III. Company Profile




                                      A.     Company Description

                                      Sprott Resource Corp. (“SRC”, the “Company”) is a dynamic, entrepreneurial company which
                                      invests and operates, through its subsidiaries, in the natural resource sector.

                                      Sprott Resource Corp. was incorporated under the Canada Business Corporations Act as
                                      3061213 Canada Inc. by articles of incorporation dated August 19, 1994.

                                      The Company’s registered office is 700-2nd Street S.W., Suite 1400, Calgary, Alberta, T2P 4V5.

                                      The head office is located at 200 Bay Street, Suite 2750, Royal Bank Plaza, South Tower,
                                      Toronto, Ontario, M5J 2J2.

                                      Sprott Resource Corp’s primary listing is on the Toronto Stock Exchange (TSX), under the ticker
                                      “SCP”. The Company’s average trading volume on the TSX is approximately 338,800 shares
                                      per day. Sprott Resource Corp also has a secondary listing, on the US OTC, under the ticker
                                      “SCPZF”.

                                      B.     Corporate Structure


                                      Description of Business


                                      Sprott Resource Corp invests directly, and indirectly, in natural resources.

                                      Currently, SRC has interests in several private companies, spanning agriculture, oil & gas and
                                      phosphates, as well as very significant financial assets.

                                      The following chart provides a summary of SRC’s current situation & corporate structure.



                                                          EXHIBIT: SPROTT RESOURCE CORP – CORPORATE STRUCTURE




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                                      Management Services Agreement


                                      Sprott Resource Corp has a unique corporate structure which highly incentivizes management
                                      to create shareholder value. Below is a brief summary.

                                                Sprott Resource Corp. has a management services agreement with Sprott Consulting LP.

                                                SCLP receives an annual management fee of 2% of Net Asset Value.

                                                Annual performance fee of 20% of the difference between the pre-tax profits for the
                                                 year and the average month-end NAV multiplied by the average yield of the
                                                 Canadian 30-year Generic Bond index.

                                                Management & non-independent director compensation paid from Sprott Consulting LP

                                                Only independent directors have been awarded options (250,000 total outstanding).

                                      The graphic below illustrates the dynamics of the management services agreement.



                                                    EXHIBIT: SPROTT RESOURCE CORP MANAGEMENT SERVICES AGREEMENT




                                                                           Source: Sprott Resource Corp, 
                                                                           Investor Presentation – 2 nd Quarter 2009




                                      C.     Corporate Strategy

                                      SRC’s strategy is comprised of the following important elements:


                                                Buy long-life, low-cost, high quality resource assets for a reasonable price when the
                                                 commodity is trading at or near a cyclical low.

                                                Co-invest with experienced, proven management teams.

                                                Raise additional capital to reduce risk and enhance opportunities.

                                                Take target companies public to capture the difference between public and private
                                                 company multiples.

                                                Seek accretive M&A opportunities and grow businesses in order to capture valuation
                                                 lift attributed to larger, more liquid companies.




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                                      D.     Investment Approach

                                      The company’s investment approach starts by its assessment of global economic trends.
                                      Individual commodity markets are diligently investigated to assess short and long-term
                                      supply/demand characteristics.

                                      SRC monitors & analyzes these trends to determine where and when to allocate its capital, and
                                      then seeks out specific investments that will benefit the most from favorable trends.

                                      The size, type and structure of an investment depends on the opportunity. Investments are
                                      designed to maximize risk-adjusted return.

                                      Structures include controlled subsidiaries, direct commodity purchases, joint venture/option
                                      agreements and minority investments in both private and public companies.

                                      Large investments are normally made in established, lower cost producing companies. Smaller
                                      investments are typically in grassroots exploration and in seeding new ventures.

                                      SRC’s has targeted to have a well-diversified portfolio of natural resource assets, including
                                      some “unique opportunities” (i.e. special situations), as is demonstrated in the following
                                      graphic.



                                                  EXHIBIT: SPROTT RESOURCE CORP ASSET PORTFOLIO COMPOSITION TARGET




                                      Based on SRC’s management services agreement with Sprott Consulting Limited Partnership, of
                                      which Sprott Asset Management Inc. is the sole limited partner, and its location in Toronto, a
                                      global center for resource investing, SRC has access to exceptional investment opportunities
                                      and a vast network of contacts and potential strategic partners. SRC leverages these
                                      relationships to grow and add value to its investments.

                                      SRC seeks to invest its capital during cycle lows, and in turn, lower its risk profile when profit
                                      margins & market multiples appear unsustainably high.

                                      The company is committed to generating consistently superior returns on capital for its
                                      shareholders, while focusing on risk management and wealth preservation.

                                      E.     General Development & Timeline of Business

                                      Until September 2007, the Company was an international mineral exploration company that
                                      acquired, explored and developed mineral properties, primarily copper, gold and silver in the
                                      United States and Mexico. The Company’s strategic plan was to carry out in-house exploration
                                      with a focus on exploration for the discovery of copper, gold and silver prospects.




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                                      In September 2007, following a review of strategic alternatives by the Company to enhance
                                      shareholder value, and after obtaining shareholder approval at a special meeting of
                                      shareholders, the Company entered into a management services agreement (the “MSA”) with
                                      Sprott Consulting Ltd. (“SCL”), a then wholly owned subsidiary of Sprott Asset Management
                                      Inc. (“SAM”). SCL subsequently assigned the MSA to Sprott Consulting Limited Partnership
                                      (“SCLP”), the successor to SCL, as part of an internal reorganization involving SAM and its
                                      subsidiaries.

                                      After the signing of the MSA, Kevin Bambrough became President and Chief Executive Officer,
                                      and Eric Sprott, John Embry and Kevin Bambrough were elected to the board of directors.

                                      Pursuant to the MSA, SCLP manages, or engages others to manage, the affairs of the
                                      Company. In addition, pursuant to the MSA, SCLP has retained SAM as investment manager to
                                      maintain and operate a managed investment account in the name of the Company with
                                      discretionary authority as to all trades.

                                      As a result of the MSA and change in the Company’s management, the Company’s business
                                      has changed. The Company now invests more broadly in the natural resource sector, through
                                      minority equity investments, joint ventures and operating subsidiaries, as well as through direct
                                      purchases of commodities, such as gold and silver bullion.

                                      F.     Recent Corporate History

                                      Below is a brief summary of selected corporate development actions since September 2007,
                                      when SRC changed its business focus, and the Sprott team became active.


                                      September 2007


                                                In September 2007, the Company entered into the MSA with SCL. As part of the
                                                 MSA, Eric Sprott, John Embry and Kevin Bambrough were appointed directors of the
                                                 Company. Eric Sprott was appointed Chairman and Kevin Bambrough was
                                                 appointed President and Chief Executive Officer. Simultaneously, the Company
                                                 completed a C$60 million private placement, which was comprised of the issuance of
                                                 40 million units at $1.50 per unit. Each unit was comprised of one common share and
                                                 one common share purchase warrant, with each warrant being exercisable until
                                                 September 5, 2009 at a price of $2.50 per common share.


                                      November 2007


                                                SRC entered into an option and exploration agreement (the “Mantaro Option
                                                 Agreement”) with the holders of the mineral licenses that comprise the Mantaro
                                                 phosphate project in Peru (the “Mantaro Phosphate Project”), under which the
                                                 Company had the option to acquire a 100% interest in the Mantaro Phosphate
                                                 Project by funding exploration and technical studies.


                                      December 2007


                                                SRC signed an agreement with PBS Coals Corporation (“PBS”) under which the
                                                 Company agreed to invest US$31 million in PBS in exchange for approximately
                                                 37.5% of the common shares of PBS. PBS was a newly incorporated corporation,
                                                 established for the sole purpose of holding approximately 73.6% (59.6% fully diluted)
                                                 of the common stock of Mincorp Acquisition Corp. (“Mincorp”), which, through PBS
                                                 Coals Inc. and its other subsidiaries, produced coal in Somerset County,
                                                 Pennsylvania.




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                                      May 2008


                                                 SRC invested an additional US$23,960,820 in PBS, acquiring an additional
                                                  13,194,938 PBS shares and increasing the Company’s holdings to 44,194,938 PBS
                                                  shares. PBS used substantially all of the proceeds to purchase shares in Mincorp.
                                                  Mincorp then purchased Mincorp shares and share purchase warrants for
                                                  cancellation, the effect being that PBS’ interest in Mincorp increased to 85.12 percent
                                                  from 59.84 percent. Upon closing of this second purchase of PBS shares, the
                                                  Company owned 37 percent of PBS and increased its effective diluted interest in
                                                  Mincorp to 31.5 percent from 22.4 percent.


                                      June 2008


                                                 SRC terminated the Mantaro Option Agreement and concurrently, through a newly
                                                  incorporated subsidiary (“Holdco”), entered into a share purchase agreement (the
                                                  “Mantaro Phosphate Project Acquisition Agreement”) to purchase all of the
                                                  outstanding shares of Mantaro (BVI) Ltd. (“Mantaro BVI”). Mantaro BVI held 99.5
                                                  percent of the outstanding shares of Mantaro Peru SAC (“Mantaro Peru”), which held
                                                  the claims relating to the Mantaro Phosphate Project in Peru. The consideration paid
                                                  by Holdco was US$1.5 million plus 1,771,309 SRC shares.


                                      July 2008


                                                 SRC completed a warrant incentive program (the “Warrant Incentive Program”),
                                                  which resulted in the early exercise of 33,188,568 warrants exercisable at $2.50,
                                                  which were issued as part of the 2007 Private Placement (each an “Old Warrant”).
                                                  The Company raised $82,971,420 from Old Warrants exercised as part of the Warrant
                                                  Incentive Program. Each holder of an Old Warrant who exercised as part of the
                                                  Warrant Incentive Program received a one half of one new common share purchase
                                                  warrant (each a “New Warrant”), which is exercisable for one common share of the
                                                  Company at a price of $4.25 until December 31, 2010.


                                      August 2008


                                                 Holdco amalgamated with Stonegate Minerals Ltd. to form Stonegate Agricom Ltd.
                                                  (“Stonegate Agricom”). The Company signed a voting agreement with Stonegate
                                                  Agricom pursuant to which it agreed, subject to certain conditions, to vote its shares
                                                  in Stonegate Agricom for directors nominated by management of Stonegate Agricom
                                                  for a period of three (3) years following an initial public offering by Stonegate
                                                  Agricom, provided that one nominee is a representative of the Company.

                                                 SRC Company signed a lock-up agreement with 7027940 Canada Limited, an affiliate
                                                  of OAO Severstal, pursuant to which it agreed to tender 27,144,938 PBS shares into a
                                                  takeover bid for all the issued and outstanding shares of PBS at $8.30 per share.


                                      September 2008


                                                 SRC completed a sale of 17.05 million shares of PBS. The Company received net
                                                  proceeds of $99,843,779. This sale was part of a larger secondary offering completed
                                                  by PBS.




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                                      October 2008


                                                SRC subscribed for 45,289,000 common shares of Waseca Energy Inc. (“Waseca”) at
                                                 a price of $0.60 per common share, for a total cost of $27,173,400, which
                                                 immediately following the completion of the subscription represented a 79.72
                                                 percent ownership interest. The Company’s ownership interest has been reduced to
                                                 79.24 percent due to additional share issuances completed by Waseca. Waseca is a
                                                 private company engaged in the exploration and production of heavy oil in the
                                                 Lloydminster area on the border of central Saskatchewan and Alberta.

                                                Amidst the severe economic crisis roiling financial markets, SRC, along with other
                                                 principal shareholders of PBS, signed a supplemental agreement (the “Supplemental
                                                 Agreement”) with PBS, PBS Coals Corporation, and affiliates of OAO Severstal,
                                                 pursuant to which the Company agreed to a discount of $84,478,886 under the Offer
                                                 in respect of the 27,144,938 PBS shares the Company agreed to tender earlier.


                                      November 2008


                                                SRC completed its sale of 27,144,938 PBS shares to the affiliate of OAO Severstal
                                                 and received net proceeds of $140,824,099 ($5.18 per share).


                                      FY 2008


                                                In the fourth quarter of 2008, SRC acquired 40,475 ounces of gold bullion for a cost
                                                 of $39,196,942 (or $968 per ounce). The Company also acquired 1,783,013.48
                                                 ounces of silver bullion for a cost of $22,773,471 (or $12.75 per ounce).

                                                During 2008, the Company repurchased and cancelled 8,000,000 common shares
                                                 under a normal course issuer bid at an average cost of $2.46 per common share for a
                                                 total cost of $19,684,854.


                                      March 2009


                                                In March 2009, SRC announced its intention to create a large, integrated corporate
                                                 farming entity under the name of One Earth Farms Corp. (“One Earth Farms”), which
                                                 will be initially a wholly-owned subsidiary of the Company. One Earth Farms will
                                                 operate primarily on First Nations farmlands in the Prairie Provinces. The Company
                                                 intends to begin operations in 2009.


                                      3rd Quarter of 2009


                                                The Company increased its physical holdings of gold bullion to 64,783 ounces from
                                                 40,475 ounces at June 30, 2009 and continued to hold 1,783,013 ounces of silver
                                                 bullion.

                                                One Earth Farms began its crop harvest during the quarter. Approximately 46% of
                                                 the canola was harvested with 40% of the estimated production committed for
                                                 delivery under a basis contract. Subsequent to quarter end, One Earth Farms has
                                                 continued the harvest of the remainder of the canola, barley and wheat.

                                                On September 28, 2009, the Company announced that it had entered into an
                                                 agreement to purchase, through Orion Oil and Gas Ltd. ("Orion") (formerly 1491542
                                                 Alberta Ltd.) a newly formed subsidiary, all of the issued and outstanding common
                                                 shares of Auriga, a private oil and gas company operating in Alberta by way of an
                                                 exempt take-over bid. The transaction was completed on October 20, 2009.



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                                      G.     PBS Coals Transaction: Example of Valuation Creation


                                      Summary


                                      PBS Coals is an excellent example of how SRC’s business model works to benefit shareholders,
                                      and illustrates how the company’s research & insight, access to the institutional community and
                                      industry leaders, and its capital markets expertise, coalesce to create value.

                                      The end result was a massive gain with proceeds of C$ 240 million on an investment of
                                      approximately C$ 55 million. The total profit on this transaction was approximately $185
                                      million, and it was completed, from the initial purchase to final sale, in approximately 1 year.

                                      A summary diagram, and a detailed description of the transaction, are provided below.


                                                           EXHIBIT: PBS COALS TRANSACTION - SUMMARY DIAGRAM




                                      Description of Transaction


                                      During early and mid-2007, through its extensive research & industry contacts, SRC determined
                                      that the underlying, long-term fundamentals of coal were excellent due to the supply and
                                      demand fundamentals.

                                      As a result, SRC sought to make an investment in a low-cost coal producer that would survive
                                      the period of low coal prices, and therefore, benefit from higher future prices.

                                      In December 2007, SRC acquired 31 million common shares of PBS Coals Corporation for
                                      $30,568,978 (US$31,000,000), representing approximately 37.5% of the outstanding common
                                      shares of PBS Coals Corporation.

                                      Under the terms of the transaction, PBS Coals Corporation was to invest substantially all of the
                                      funds received to acquire shares of Mincorp Acquisition Corp., a Delaware corporation
                                      (“Mincorp”). Mincorp, through its wholly-owned subsidiaries, was engaged in the mining of
                                      coal in Somerset County, Pennsylvania.

                                      On completion of the transactions, PBS Coals Corporation held approximately 73.6% (59.6%
                                      fully diluted) of the common stock of Mincorp, the balance of which was held by management
                                      and other pre-existing investors.

                                      In May 2008, SRC invested an additional C$ 24,447,224 (US$ 23,960,000) in PBS Coals
                                      Corporation, as part of an aggregate funding of approximately US$ 64.5 million, acquiring an
                                      additional 13,194,938 shares and increasing the Company’s holdings to 44,194,938 shares.
                                      PBS Coals Corporation used the proceeds to subscribe for additional shares of Mincorp, which


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                                      used the additional funds to purchase, for cancellation, all outstanding Mincorp warrants as well
                                      as 30% of Mincorp stock held by management.

                                      Upon the closing of the transactions, SRC owned approximately 37% of PBS Coals Corporation,
                                      and in turn, PBS Coals Corporation owned over 85% of the common stock of Mincorp, with
                                      management and employees retaining the balance. SRC’s effective diluted interest in Mincorp
                                      increased from approximately 22.4% to 31.6%.

                                      In June 2008, PBS Coals Corporation entered into a letter of intent to complete a business
                                      combination with Penfold Capital Acquisition Corporation (“Penfold”), which was completed in
                                      September 2008. The resulting company was named PBS Coals Limited.

                                      In August 2008, SRC signed a lock-up agreement with 7027940 Canada Limited (an affiliate of
                                      OAO Severstal) pursuant to which the Company agreed to tender all of its PBS shares into a
                                      takeover bid for all the issued and outstanding shares of PBS.

                                      In September 2008, upon completion of the business combination between PBS Coals
                                      Corporation and Penfold, the Company completed its sale of 17,050,000 common shares of
                                      PBS for gross proceeds of C$ 102,300,000 (net proceeds after commission was C$ 99,861,368).
                                      Following the sale, SRC held 27,144,938 common shares of PBS, representing approximately a
                                      19.9% interest. A gain of C$ 74,361,080 was recorded by SRC upon the sale.

                                      In October 2008, SRC along with other principal shareholders of PBS, signed a supplemental
                                      agreement (to the August 2008 agreement) with affiliates of OAO Severstal pursuant to which a
                                      reduction in price was negotiated due to extreme market conditions brought on by the financial
                                      crisis.

                                      In November 2008, SRC received net proceeds of C$ 140,824,099 on its sale of 27,144,938
                                      PBS shares. A gain of $92,424,177 was recorded by SRC upon the sale of the remaining PBS
                                      shares.


                                      Financial Summary of PBS Coals Transactions


                                      The table below summarizes the financial aspects of the PBS Coals transactions, and illustrates
                                      the massive value creation abilities of Sprott Resource Corp. The total profits of the transaction
                                      exceeded $185 million.



                                                          EXHIBIT: PBS COALS TRANSACTION – FINANCIAL SUMMARY




                                      H.     Management & Directors

                                      SRC is able to manage with a lean management structure, by leveraging its relationship with
                                      Sprott Consulting Ltd.




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                                      Below is a brief summary of SRC’s management team.


                                      Management Team


                                      Kevin Bambrough, Chief Executive Officer, President, Director

                                      Mr. Bambrough joined Sprott Resource Corp. in 2007 as President and Chief Executive Officer,
                                      bringing nearly a decade of investment industry experience. He also serves as a Market
                                      Strategist for Sprott Asset Management Inc., a position he has held since 2006.

                                      Since 2003, Mr. Bambrough has focused his analysis on the resource sector with particular focus
                                      on coal and uranium mining. In his role as Market Strategist, he also spends a significant
                                      portion of his time examining global economic activity, geopolitics, and commodity markets in
                                      order to identify new trends and investment opportunities.

                                      Since 2003, Mr. Bambrough has focused his analysis on the resource sector with particular focus
                                      on coal and uranium mining. In his role as Market Strategist, he also spends a significant
                                      portion of his time examining global economic activity, geopolitics, and commodity markets in
                                      order to identify new trends and investment opportunities.

                                      In May 2006, he co-authored a report with Eric Sprott entitled: Investment Implications of an
                                      Abrupt Climate Change.



                                      Paul Dimitriadis, COO, General Counsel & Corporate Secretary

                                      Prior to joining Sprott Resource Corp., Mr. Dimitriadis worked as legal counsel for Sprott
                                      Consulting L.P. and its predecessor Sprott Consulting Ltd., since the inception of Sprott
                                      Resource Corp. in September 2007. In both roles, Mr. Dimitriadis has advised on asset
                                      acquisitions, joint venture agreements and securities law matters.

                                      Mr. Dimitriadis holds a Bachelor of Law degree from the University of British Columbia, and
                                      previously practiced law at the firm of Blake, Cassels & Graydon LLP. Mr. Dimitriadis also holds
                                      a Bachelor of Arts degree from Concordia University, and is a member of the Law Society of
                                      Upper Canada.



                                      Steve Yuzpe, Chief Financial Officer

                                      Mr. Yuzpe has over 10 years of financial administration management experience with public and
                                      private corporations. Over his career, Mr. Yuzpe has developed specific expertise in financial
                                      and internal reporting, strategic development and business planning, corporate governance,
                                      investor relations, regulatory compliance, treasury, financings and restructurings.

                                      Mr. Yuzpe holds a Bachelor of Science, Engineering (Mechanical) degree from the Queen’s
                                      University along with the Professional Engineering designation (P. Eng.), an MBA from the
                                      Richard Ivey School of Business in London Ontario and is a Chartered Financial Analyst (CFA)
                                      charter holder.




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                                      Board of Directors


                                      Importantly, Sprott Resource Corp has an all-star Board of Directors.

                                      A brief summary is provided below, and a detailed description is provided in the Appendices.



                                      Eric Sprott (Chairman), President and CEO of Sprott Inc.

                                      Mr. Sprott has accumulated more than 35 years of experience in the investment industry. Mr.
                                      Sprott is currently the Chairman and Chief Executive Officer of Sprott Asset Management Inc.
                                      and is the portfolio manager responsible for Sprott Hedge Fund L.P., Sprott Hedge Fund L.P. II,
                                      Sprott Offshore Fund, Sprott Canadian Equity Fund, Sprott Energy Fund, Sprott Bull/Bear RSP
                                      Fund and the Sprott Managed Accounts.



                                      John Embry (Director), Chief Investment Strategist, Sprott Asset Management Inc.

                                      Mr. Embry has served as Chief Investment Strategist of Sprott Asset Management Inc. since
                                      2003, focusing on the Sprott Gold and Precious Minerals Fund and the Sprott Strategic
                                      Offshore Gold Fund Ltd. Mr. Embry has researched the gold sector for more than 30 years and
                                      has accumulated industry experience as a portfolio management specialist since 1963.



                                      Kevin Bambrough, Chief Executive Officer, President, Director

                                      [See description under “Management Team” Section]



                                      Terrence Lyons (Independent Director), Chairman, Northgate Minerals Corporation

                                      Mr. Lyons is currently Chairman of Northgate Minerals Corp., and serves as a director or officer
                                      of several other public corporations including BC Pacific Capital Corp., Canaccord Capital Inc.,
                                      Diamonds North Resources Ltd., and the Vancouver Convention Centre Expansion Project Ltd.,
                                      as well as several private corporations. He is a past Vice Chairman of Battle Mountain Gold
                                      Company, former Chairman of Westmin Resources Limited and is currently Chairman of the
                                      Mining Association of BC.



                                      A. Murray Sinclair (Independent Director), Co-Chairman of Quest Capital Corp.

                                      Mr. Sinclair has served as Managing Director of Quest Capital Corp. since 2002. Previously, Mr.
                                      Sinclair was the President of Quest Investment Corp., a publicly listed merchant bank based in
                                      Vancouver. Mr. Sinclair co-founded Quest Ventures Ltd., a privately held merchant bank based
                                      in Vancouver, which specialized in bridge loans and arbitrage. Currently, Mr. Sinclair is a
                                      director of a number of public companies.



                                      Michael Winn (Independent Director), President of Terrasearch Inc.

                                      Mr. Winn is currently President of Terrasearch Inc., a consulting company that provides analysis
                                      on mining and energy companies. Prior to forming his own company in 1997, Mr. Winn spent
                                      four years as an analyst for Global Resource Investments, Ltd, a Southern California based
                                      brokerage firm, where he was responsible for the evaluation of emerging oil and gas, and
                                      mining companies. Mr. Winn has worked in the oil and gas industry since 1983, and the mining
                                      industry since 1992. He is the director of several companies that are involved in mineral
                                      exploration in Canada, Latin America, Europe and Africa.




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                                      I.     Capital Structure


                                      Summary


                                      At the end of the 3rd Quarter of 2009, SRC had 85,159,024 shares issued and outstanding.

                                      As of November 12, 2009, the Company had 96,761,507 shares issued and outstanding. The
                                      increase in the number of shares since the quarter end relates to the issuance of shares to
                                      finance the acquisition of Auriga Energy (Orion Oil & Gas).

                                      Outstanding options and warrants, as of November 12, 2009, are summarized in the table
                                      below.



                                                  EXHIBIT: SPROTT RESOURCE CORP - OUTSTANDING OPTIONS AND WARRANTS




                                      Share Buyback Program


                                      In 2008, SRC announced a share buyback program, in Canada known as a Normal Course Issuer
                                      Bid (the “NCIB”), where the Company was allowed to purchase up to 8,000,000 million shares,
                                      or 10% of the public float.

                                      In a clear sign of management’s focus on shareholder value, SRC purchased 8,000,000 shares,
                                      the maximum amount permitted by law.

                                      On August 21, 2009, SRC enacted another NCIB for the upcoming year (i.e. 2009 – 2010), to
                                      repurchase up to 6.25 million of its common shares. This figure is slightly less than 10 percent
                                      of the public float as at August 13, 2008 (62,560,214 shares).

                                      The Company received approval from the TSX to commence the bid on August 31, 2009, and
                                      the approval runs for one (1) year. Pursuant to TSX policies, daily purchases made by the
                                      Company may not exceed 89,539 common shares, which is 25% of the six-month average daily
                                      trading volume of common shares on the TSX as at August 20, 2009.

                                      The Company initiated the share buyback program because it firmly believed that its common
                                      shares had been trading in a price range that did not adequately reflect their value in relation to
                                      the Company’s assets and future prospects.

                                      The Company believes that the repurchase, for cancellation, of its common shares through the
                                      NCIB, at appropriate times, can enhance shareholder value and constitutes an attractive
                                      investment and an appropriate use of financial resources.

                                      Through November 12, 2009, the Company had already purchased, for cancellation, 1.9 million
                                      common shares. The average price paid for each common share purchased under the NCIB to
                                      date is $3.873 per common share.




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                                      J.     Major Shareholders


                                      SRC management, the Board of Directors and highly experienced mining financiers are heavily
                                      invested in SRC, which aligns SRC’s corporate initiatives with that of the common shareholders.

                                      The largest shareholder is the The Rule Family Trust, which is backed by Rick Rule of Global
                                      Resource Investments, who is a very well-known resource investor & mining financier. Rick Rule
                                      was instrumental in the founding & creation of Sprott Resource Corp.. According to recent
                                      regulatory filings, The Rule Family Trust owned approximately 8.7 million shares, or
                                      approximately 9.0% of SRC’s issued & outstanding shares as of November 12, 2009.

                                      Additionally, Eric Sprott, the Chairman of the Board, owns more than 7.0 million shares of SRC,
                                      which amounts to approximately 7.3% of SRC’s issued & outstanding shares.

                                      Other major shareholders include Kevin Bambrough, SRC’s CEO & President, with
                                      approximately 1.5 million shares, and John Embry, a SRC Director, with approximately 1.3
                                      million shares.

                                      The following table illustrates that entities and persons mentioned above own approximately
                                      19% of the Sprott Resource Corp, aligning their interests with those of normal common
                                      shareholders.



                                                          EXHIBIT: SPROTT RESOURCE CORP – MAJOR SHAREHOLDERS




                                      With major shareholders including SRC management & board members, as well as highly
                                      experienced & sophisticated resource investors, SRC’s stock is strongly supported by smart
                                      money.




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                                      IV. Major Assets & Projects


                                      A.     One Earth Farms Corp.




                                      1. Overview


                                      SRC sees the next major opportunity to be in agriculture, and toward that end, they have
                                      created a unique company – One Earth Farms Corp.

                                      One Earth Farms is aiming to revolutionize the farming business in Canada, and to set a new
                                      standard for business relations between the private sector and the First Nations. First Nations
                                      refers to, and represents, Canadian aboriginal groups.

                                      One Earth Farms Corp has an ambitious objective:


                                                            Goal: To become one of the world’s largest farms.


                                      Toward that end, SRC and One Earth Farms have consolidated some of the world’s most fertile
                                      land, with all the agricultural infrastructure & culture in place.

                                      They have also assembled an experienced and diverse team to build the company into an
                                      industry leader, with unprecedented scale.


                                      2. Description


                                      SRC invested $27.5 million in first round capital to establish One Earth Farms Corp., a wholly-
                                      owned subsidiary of SRC.

                                      One Earth Farms is a large scale, fully-integrated corporate farming entity that has commenced
                                      operations on cultivated First Nations’ farmland in the Prairie Provinces.

                                      One Earth Farms plans to partner with the First Nations to become the largest, most efficient
                                      farming operation in Canada.

                                      The First Nations control 1,000,000 acres of world-class farmland in the Prairie Provinces of
                                      Canada, a large portion of which One Earth Farms intends to lease. Under the plan, 17 native
                                      bands will lease their land to One Earth Farms.

                                      Considering that a large corporate farm usually measures about 25,000 acres, having access to
                                      approximately 1,000,000 million acres gives One Earth Farms unprecedented scale, as is
                                      illustrated in the following graphic.



                                                            EXHIBIT: ONE EARTH FARMS: IS A MILLION ACRES BIG?




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                                      3. Strategy


                                      One Earth Farms believes that through professional farm management, economies of scale,
                                      geographic & crop diversification and improved purchasing power & pricing power, it will be
                                      able to achieve higher rates of profitability than those realized by smaller farms.

                                      Additionally, One Earth Farms believes that significant benefits in the form of job training,
                                      employment opportunities and equity participation will be realized by the First Nations.

                                      SRC believes that the fundamentals for agriculture are very favorable for the long term and that
                                      global trends will continue to impact food supplies.

                                      Arable land per person continues to decline, fresh water remains in short supply, food is being
                                      diverted to animal consumption and/or renewable energy supplies and farmers are facing
                                      tightening credit conditions. These factors are fueling substantial investment demand globally
                                      in farming.

                                      SRC believes that a large, successful, well-capitalized corporate farm could be highly valued in
                                      this environment.


                                      4. Advantages of Scale


                                      One of the most important, and compelling, aspects of the One Earth Farms’ value proposition
                                      is the advantages that are brought about by scale.

                                      Farms are usually very small, often family owned, and quite inefficient. Large corporate farms
                                      are often only 25,000 – 50,000 acres, with rare/exceptional ones perhaps being up to 75,000
                                      acres.

                                      With size, One Earth Farms can achieve significant economies of scale, and increase operating
                                      margins materially, through the following.


                                                1.   Purchasing Discounts: Large Discounts on Key Farming Inputs (10% - 25%).

                                                2.   Premium Pricing: Premium Pricing on Sales due to Marketing Strength and
                                                     Branding.

                                                3.   Higher Efficiency: Better Utilization of Machinery, Equipment & Labor.

                                                4.   Improved Yields: Yield improvements in crops.



                                      5. Management Team


                                      SRC has brought on board a highly experienced management team to develop One Earth
                                      Farms. Important members of the team include the following individuals.



                                      Larry Ruud, President & CEO of One Earth Farms

                                      Mr. Ruud brings over 15 years experience as an active management consultant for farmers in
                                      areas such as commodity price management, capital investment decisions, process
                                      improvement, management and ownership transition and in developing farming agreements.

                                      In 2000, Mr. Ruud merged his company into and became a partner at Meyers Norris Penny,
                                      where he led the firm’s Alberta Agriculture Consulting Team.




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                                      Mr. Ruud is a director of Viterra Inc., which is the largest grain company in Canada, and a
                                      member of its Audit Committee.



                                      Blaine Favel, Chairman of One Earth Farms GP Corp.

                                      Mr. Favel brings over 18 years of experience in First Nations business development as an
                                      advisor, entrepreneur and Chief. Mr. Favel is a former Grand Chief of the Federation of
                                      Saskatchewan Indian Nations where he pioneered two national firsts; the establishment of the
                                      First Nations Bank of Canada and the Saskatchewan Indian Gaming Authority. Mr. Favel holds
                                      an LLB from Queens University and an MBA from Harvard Business School.


                                      6. Recent Developments


                                      In the 3rd quarter of 2009, One Earth Farms began its crop harvest. Approximately 46% of the
                                      canola was harvested with 40% of the estimated production committed for delivery under a
                                      basis contract.

                                      One Earth Farms commenced its crop harvest and committed to deliver 2,580 tonnes of canola
                                      using a basis-only contract, which requires the futures portion of the price to be finalized at a
                                      subsequent date. Using the futures price at September 30, 2009, the value of these sales
                                      represents $967 thousand of revenue. Production costs, which include all costs except for farm
                                      leases and general and administrative expenses, for the canola delivered and sold in the third
                                      quarter were $817 thousand.

                                      As expected by management, One Earth Farms experienced higher costs per acre during the
                                      first year of operations than what is projected at more stabilized levels in future years. Over
                                      time, costs such as contract labor instead of One Earth Farms seasonal and full-time employees,
                                      and increased usage of fertilizers and chemicals to improve future yield capability of the soil will
                                      be reduced.

                                      While the 2009 crop year is historically late in the regions seeded by One Earth Farms, it is still
                                      anticipated that the majority of the crop will be harvested in the fourth quarter.

                                      Subsequent to the end of Q3 2009, One Earth Farms has continued the harvest of the
                                      remainder of the canola, barley and wheat.


                                      7. Near-term Outlook


                                      One Earth Farms began harvesting operations of approximately 13,000 seeded acres during
                                      the third quarter of 2009. Management continues to move forward for the scale up of
                                      operations in 2010.

                                      Cropland lease negotiations are currently underway with 25 First Nations in Saskatchewan,
                                      Manitoba and Alberta representing over 100,000 acres of land. Management expects that
                                      lease agreements will be signed with a subset of the agreements currently being negotiated.

                                      A strategy has been developed to select the optimum land parcels for the second year of
                                      operations and beyond, including proximity to existing operations, potential profitability, prior
                                      use of the land and a set of rigorous agronomic protocols developed to understand the
                                      opportunity of each section of cultivated land.

                                      Management has also authored a joint agricultural industry training proposal under the
                                      sponsorship of a federal government program to launch a training program for workers.

                                      Management is also in final negotiations of a limited scale 650 cow/calf ranching operation that
                                      would start in the fourth quarter of 2009. The capital outlay, including cattle, feed, lease costs
                                      for pasture lands and related equipment and infrastructure, for the ranching venture would be
                                      approximately $1.2 million.

                                      Management is also negotiating with two additional cow/calf ranching operations. One is on a
                                      First Nation where One Earth Farms will place its own livestock. The other is a non-First Nation

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                                      ranch that will be a significant source of high quality replacement animals for all three ranching
                                      operations.

                                      The non-First Nation ranch negotiations are expected to close in the fourth quarter.


                                      8. Future (Medium-Term) Prospects


                                      The medium-term scope for One Earth Farms is enormous, and the prospects for the company
                                      over the 1- 3 years includes the following.


                                                Canada’s Largest Farm as Early as 2010: Targeting 100,000 acres for 2010, making
                                                 One Earth Farms Canada’s largest farm.

                                                Strategic Partnerships: Strategic partnerships, including a potential strategic capital
                                                 raise, with suppliers and/or off-takers (e.g. long-term sales contracts).

                                                Operational Synergies: Launching of synergistic cattle operation.

                                                Strategic Financings & Capital Raises: A large financing to fund aggressive project
                                                 development in 2010 / 2011.

                                                Potential for More Agreements with First Nations: Additional agreements/deals with
                                                 the First Nations.

                                                Liquidity Event: Potential for a liquidity event as early as 2011 / 2012, market
                                                 conditions willing.




                                      B.     Gold & Silver Bullion Holdings

                                      As of the end of the 3rd Quarter of 2009, SRC had 64,783 ounces of gold bullion, which was an
                                      increase from 40,475 ounces at June 30, 2009. It also continued to hold 1,783,013 ounces of
                                      silver.

                                      The aggregate bullion holdings had a fair market value of $100.6 million as at September 30,
                                      2009 versus a cost of $87.9 million (June 30, 2009 cost - $61.9 million). This represents an
                                      unrealized gain of $12.7 million as at September 30, 2009.

                                      Subsequent to quarter end, the Company sold its silver bullion position for a gain of $9.9
                                      million and purchased an additional 9,188 ounces of gold bullion for a cost of $10.4 million.


                                      Outlook


                                      Since SRC holds its bullion holdings on its balance sheet at the lower of cost or market, any
                                      increase in the gold price will add incremental value to the share price.

                                      With gold north of US$ 1,150 per ounce in late November, SRC is already sitting on a nice
                                      unrealized gain on its existing gold bullion holdings.

                                      If the gold price continues its ascent in the years to come, any and all of SRC’s bullion holdings
                                      will obviously benefit, and add incremental value to SRC’s share price.




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                                      C.     Orion Oil and Gas Ltd.


                                      1. Overview


                                      On September 25, 2009, SRC entered into an acquisition agreement to purchase, through a
                                      newly formed subsidiary, Orion, Auriga Energy Inc., a private oil & gas company operating in
                                      Alberta, Canada.

                                      Concurrently with the execution of this Acquisition Agreement, the Company subscribed for
                                      7,954,545 common shares of Orion at a price of $0.44 per common share. Orion used the
                                      proceeds to invest $3.5 million into Auriga.

                                      Auriga was identified as an initial platform with a very concentrated portfolio of high quality
                                      assets and growth opportunities limited to date by a lack of capital and low commodity prices.

                                      The primary asset is the condensate rich Kaybob South Beaverhill Lake Gas Unit No. 1
                                      ("Kaybob"), which is material in size, geologically well-defined and has proven performance
                                      from significant prior development across the Kaybob structure.

                                      Kaybob has significant infrastructure in place to optimize free cash flow over the next five years.
                                      With significant technical analysis and appraisal drilling, Kaybob provides a material portfolio
                                      asset for Orion in the near term.

                                      Importantly, Orion is led by seasoned oil & gas veteran, Gary Guidry, who most recently served
                                      as CEO of Tanganyika Oil Company Ltd.. Under Gary's leadership, Tanganyika, between May
                                      2005 and December 2008, grew production to approximately 25,000 bbl/d with the company’s
                                      share price increasing from C$ 6.50 to C$ 31.50 per share at the time of its sale to Sinopec
                                      International Petroleum Exploration and Production Corporation ("Sinopec") in December 2008
                                      for over $2.0 billion.

                                      Gary & his management team intend not only to move quickly to capture the value in Auriga,
                                      but also to aggressively pursue new business development opportunities. International
                                      development projects where Orion management has an exceptional performance record will be
                                      an area of particular emphasis.

                                      Concurrently with the closing of the Acquisition, and to capitalize on Auriga’s high quality
                                      portfolio of assets, Orion completed a C $61.5 million private placement pursuant to which it
                                      issued 139,772,727 common shares at $0.44 per common share. As part of the Private
                                      Placement, SRC purchased 122,330,162 common shares for $53,825,271. The balance of the
                                      common shares issued as part of the Private Placement was subscribed for by management of
                                      Orion, and their associates, as well as by former shareholders of Auriga.

                                      Gary Guidry said, "with the injection of new capital we expect to be able to quickly capitalize
                                      on the development opportunities within Auriga's portfolio. We believe that Auriga has the
                                      potential to develop significant additional natural gas production through low risk drilling at the
                                      condensate rich Kaybob. We are also very pleased that SRC shares our vision of building a
                                      larger oil and gas company."

                                      Kevin Bambrough, President and CEO of SRC said, "acquiring and recapitalizing long life, low
                                      cost, condensate rich natural gas reserves at a good valuation during a period of depressed
                                      natural gas prices fits perfectly with our business plan."

                                      The Acquisition closed on October 20, 2009. SRC issued 13.85 million common shares to
                                      complete the Acquisition for which it received 99,049,643 common shares of Orion. As at
                                      October 20, 2009 as a result of the Acquisition and the completion of the Private Placement,
                                      the Company owns 229,334,350 common shares of Orion out of 289,226,761 common shares
                                      outstanding (79.3%).

                                      Auriga is a wholly-owned subsidiary of Orion. The Company’s total purchase consideration for
                                      the 229.3 million Orion shares is $105.1 million.




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                                      2. Recent Developments


                                      On October 15, 2009, as SRC was closing the Auriga transaction, SRC announced that Orion
                                      had entered into an equity financing agreement, on a best efforts basis, with a syndicate of
                                      agents co-led by Cormark Securities Inc., FirstEnergy Capital Corp. and TD Securities Inc.,
                                      pursuant to which Orion had agreed to raise $100,000,000 from the sale of subscription
                                      receipts at a price of $5.00 per Subscription Receipt.

                                      Subsequently, SRC was informed by the investment banks that they were unable to complete
                                      the Offering at those terms. Since the agents were unable to complete the Offering at those
                                      terms, SRC and Orion decided to terminate the Offering.

                                      Kevin Bambrough said, "it is in SRC's best interests to request that the Offering be terminated
                                      given that the Agents were unable to complete the Offering at the proposed terms,". "We feel
                                      that discounting the terms of the Offering would reduce the value creation opportunity for SRC
                                      that exists with Orion. As a result, SRC will maintain its 79.3% ownership of Orion and work
                                      with Orion's management to develop Orion's assets and pursue accretive acquisitions."


                                      3. Near-Term Outlook


                                      Orion, and its wholly-owned subsidiary Auriga, have sufficient capital to fully fund the
                                      development of its properties & will focus in the near-term on the relatively low risk assets in
                                      Canada.

                                      Auriga commenced an accelerated drilling program in mid-November on its Kaybob property
                                      and plans to drill two gross wells (1.8 net wells) at Kaybob by the end of 2009. In 2010, Auriga
                                      plans to drill 16 gross wells (14.5 net wells) at Kaybob and 16 gross wells (16 net wells) at
                                      Redwater wells as part of a proposed $80 million capital spending program.

                                      The capital spending program for the next year is designed to Auriga's increase production to
                                      between 5,000 boe/d and 7,000 boe/d by the fall of 2010.


                                      4. Future Prospects


                                      With a highly experienced & successful management team, and the capital markets expertise of
                                      SRC, Orion Oil & Gas will almost certainly be looking to move forward aggressively.

                                      Those actions will likely entail moving the currently private company into a publicly traded
                                      vehicle, which will benefit shareholders as the private market valuation will be replaced by a
                                      higher, public market valuation.

                                      Following a move into a public company, value-enhancing acquisitions will likely be at the top
                                      of the priority list. Given Guidry’s background in the international markets, Orion is likely to
                                      look abroad, especially in South America, with focus markets being Colombia and Argentina.

                                      Orion’s plan is to focus on very large, easy to develop assets with low cost structures, and
                                      assets that can be enhanced through technology and drilling. They will then use cash flow to
                                      further explore relatively mature basins & add value through the drill bit.

                                      The end game will likely be similar to that of Tanganyika Oil, wherein Orion will be built up over
                                      a period of time through acquisitions and drilling, to the point where it will eventually be
                                      monetized through a sale to a strategic buyer, such as a National Oil Company.

                                      If Gary’s team and Orion are able to deliver on their strategy and capitalize on their assets,
                                      shareholders are likely to be very well rewarded.




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                                      D.     Stonegate Agricom Ltd.

                                      In early 2008, SRC identified an opportunity to invest in phosphate rock, since global exports of
                                      high-quality phosphate rock are largely concentrated in North Africa.

                                      SRC’s investment thesis was that a large-scale, low-cost producing phosphate mine outside that
                                      area would be of great long-term value.

                                      SRC saw an opportunity in Peru with the Mantaro Phosphate Deposit, and after purchasing the
                                      rights to the deposit, attracted a highly experienced team with proven success in the mining
                                      sector to develop the deposit.

                                      Stonegate Agricom, which has an independent management team, is a 72.45% owned
                                      subsidiary of SRC. Stonegate Agricom indirectly owns, and is working on exploring and
                                      developing, the Mantaro Phosphate Deposit located in Peru.

                                      The map below shows the Mantaro deposit’s location in Peru.



                                                       EXHIBIT: MANTARO PHOSPHATE DEPOSIT – LOCATION MAP (PERU)




                                      History


                                      The Mantaro Phosphate Deposit has been studied by several groups since the early 1960s, and
                                      has had extensive work done on it in the past.

                                      The Deposit area was first explored and claimed by Minera Mantaro S.A., a Peruvian company,
                                      in 1960. Exploration work consisted of surface mapping and sampling over a wide area of the
                                      Mancaspico syncline.




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                                      During the 1961-1968 period Cerro de Pasco Corporation (“CDP”) conducted extensive
                                      exploration work on the Property and surrounding area.



                                                          EXHIBIT: MANTARO PHOSPHATE DEPOSIT - PROJECT MAP




                                      Phosphex S.A. (“Phosphex”) acquired the CDP database in 1998 and conducted exploration
                                      work on the Property. Work consisted of resampling and confirming the CDP data, and some
                                      preliminary beneficiation studies on weathered rock. The results obtained were similar to those
                                      of CDP.

                                      Zublin Mining of Chile (“Zublin”) and Doe Run undertook exploration work in 1998 and 1999
                                      under an option agreement with Phosphex. Six trenches were dug and channel sampled.
                                      Samples from a trench in the Quicha Grande area returned 28.5 m averaging 9.73% P2O5,
                                      while samples from the Quicha Chico trench returned 15 m with an average of 12.19% P2O5.
                                      These grades are comparable to phosphate grades from existing mines in Idaho and Florida in
                                      the United States.

                                      A mini-bulk sample obtained by trench sampling was collected for beneficiation testing and
                                      acidulation testing using sulphuric acid from the Doe Run smelter at La Oroya. Gravity
                                      beneficiation work indicated a concentrate could be produced with reasonable grade and
                                      recovery. Acidulation tests to produce single superphosphate fertilizer from the concentrate
                                      were successful.

                                      In 2000/2001 Bateman Phosphate Technologies (“Bateman”) collected fresh sample material
                                      from the trenches and completed a program of beneficiation testing. Bateman also developed
                                      a resource estimate and conducted a scoping study assessment of developing a mine and
                                      phosphate concentrate production plant. Bateman was successful in producing a concentrate
                                      grading 32.5% P2O5 with a recovery of 54.3% of the P2O5 and an overall mass recovery of
                                      27%. Phosphate concentrates grading in excess of 30% P2O5 are generally deemed to be
                                      commercial grade.

                                      Bateman estimated an “indicated resource” of approximately 61 MM tonnes and an “inferred
                                      resource” of an additional 40 MM tonnes, with considerable scope for development of
                                      additional mineral resources. Bateman defined a mineable resource of approximately 40 MM
                                      tonnes for the purposes of the scoping study. (Note: The resource estimate by Bateman is an
                                      historical estimate and does not conform to the mineral resource and mineral reserve
                                      estimation and reporting requirements as defined in NI 43-101 Canadian standard).

                                      The Bateman scoping study assumed a production level of 1.25 MM tpy of phosphate
                                      concentrate grading 32.5% P2O5 and a mining rate of 5.0 MM tpy run-of-mine ore. Capital
                                      costs for the mine, mineral beneficiation plant and related infrastructure were estimated at $US


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                                      56.5 MM. The Net Present Value (NPV) of the project was estimated to be $US 71.8 MM using
                                      a 6% discount rate, with a project Internal Rate of Return (IRR) of 21% at then prevailing market
                                      prices.

                                      In 2006, Companhia Vale do Rio Doce (“Vale”) examined the Property and collected trench
                                      samples for analysis and beneficiation testing. Vale was successful in preparing a concentrate
                                      grading 31.3% P2O5, with a P2O5 recovery of approximately 53% and an overall mass recovery
                                      of approximately 22%. Vale recommended additional work related to geological exploration
                                      and metallurgical testing to better define the resource and the processing requirements.

                                      The overall conclusion of the studies conducted by CDP, Zublin, Doe Run, Bateman, and Vale
                                      was that the deposit represented a potentially significant phosphate resource and that it was
                                      possible to produce a marketable grade of phosphate concentrate which was amenable to the
                                      production of single superphosphate (SSP) fertilizer.

                                      The reports prepared by the aforementioned companies recommended additional work on the
                                      Property to better define the available resource and potential processing routes for production
                                      of phosphate concentrate.


                                      Recent & Current Activities


                                      In August 2008, SRC filed a National Instrument 43-101 compliant Technical Report for the
                                      Mantaro Phosphate Deposit. As outlined in the Report, the estimated inferred mineral
                                      resource on the Philip concession of the Mantaro Phosphate Deposit is 45.17 million tonnes
                                      grading at 15.4% P2O5.

                                      A trenching and drilling program commenced on a portion of the property in the first quarter of
                                      2009 with the goal of increasing the size and confidence of the existing inferred mineral
                                      resource.

                                      Additionally, early in Q4 2009, Stonegate Agricom purchased a 100% interest in the Paris Hills
                                      Phosphate/Vanadium property from RMP Resources Corp.. The property is located in Bear
                                      Lake Country, Idaho, USA, and gives Stonegate Agricom a second significant property in a
                                      complementary jurisdiction.

                                      As consideration for the acquisition, Stonegate is paying $1,000,000 in cash and issued
                                      6,000,000 million common shares of Stonegate valued at 50 cents per common share. In order
                                      to help finance the acquisition of the property, SRC subscribed for $1.25 million (2.5 million
                                      shares) of Stonegate Agricom. The issuance of the shares for the purchase of property caused
                                      SRC’s interest to be diluted down from 77.25 to 72.45%.


                                      Future Prospects


                                      SRC is currently working on a preliminary economic assessment of the Mantaro Deposit.

                                      Also, with two assets in hand, and an experienced management team, it is reasonable to
                                      believe that SRC will be looking to monetize at least a portion of its investment in Stonegate
                                      Agricom if the Mantaro Deposit proves to be economic.




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                                      E.     Waseca Energy Ltd.


                                      Overview


                                      Waseca, which was formed in 2008, is private oil & gas company, and a subsidiary of SRC.

                                      On October 1, 2008, Sprott Resource Corp. funded C$27,173,400 to acquire a 79.72%
                                      undiluted interest in Waseca. It currently owns 45,289,000 common shares, or 79.24%, of
                                      Waseca.

                                      Waseca is engaged in the exploration and production of heavy oil in the Lloydminster area on
                                      the border of central Saskatchewan and Alberta. Waseca currently owns four prospective
                                      petroleum and natural gas leases and has started drilling. Waseca will continue to drill on its
                                      existing leases and pursue additional acquisitions.

                                      The independent management team at Waseca has an average 33 years of technical and
                                      managerial experience in the oil and gas sector. Prior to founding Waseca, management
                                      generated significant production growth in the Lloydminster area while employed at a major
                                      independent oil and gas company.


                                      Outlook


                                      Waseca has amassed a significant land position and is currently completing its fourth quarter
                                      drilling program of 11 wells. The company is also amassing significant amounts of seismic data
                                      to facilitate future land sale participation and determine future exploratory drilling locations.

                                      Waseca continues to actively evaluate potential opportunities to acquire production through
                                      the execution of a strategic transaction. The company also continues to monitor upcoming
                                      crown land sales for opportunities to increase its land position.

                                      Based on current oil prices and market conditions, Waseca expects to continue an active
                                      drilling program through 2010.



                                      F.     Other

                                      SRC management continues to look for assets and/or companies at attractive valuations that,
                                      over the long term, will prove to be profitable investments for Sprott Resource Corp.




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                                      V. Financial Analysis & Valuation


                                      Sprott Resource Corp, under its current leadership & in its current corporate structure, is barely
                                      2-years old.

                                      In FY 2008 - its first full year of operations - SRC was extremely successful. The year was a
                                      fantastic success because of SRC’s adept deal-making skills, highlighted by the successful
                                      monetization of PBS Coals.

                                      For the majority of 2009 so far, SRC has been content to be quite cautious & conservative. The
                                      company has been more than willing to remain heavily biased toward liquid instruments
                                      including cash & cash equivalents, short-term investments and gold & silver bullion, as it looks
                                      for accretive transactions amongst numerous distressed & developmental assets.

                                      A brief summary of FY 2008, and the most recent quarter (Q3 2009), are provided below. Full
                                      financial statements, as of September 30, 2009, are provided in the appendices.



                                      A.     Financial Analysis


                                      FY 2008 Results


                                      The year 2008 will go down in financial history as an incredibly turbulent and difficult time, with
                                      the onset of the financial crisis precipitated by the failure of Lehman Brothers, AIG, Fannie Mae
                                      and Freddie Mac.

                                      However, despite this very difficult environment, SRC, in its first full year, was able to generate
                                      exceptional earnings for shareholders.

                                      For the fiscal year 2008 (FY 2008), SRC reported net earnings of C$ 134.2 million, or C$ 1.94
                                      share. This compared to net earnings of C$ 2.0 million, or C$ 0.09/share, in the previous year.

                                      Also during the year, SRC was able to increase net assets by a remarkable 274%, from C$ 76.1
                                      million in FY 2007 to C$ 284.8 million in FY 2008. Net assets are defined as total assets minus
                                      total liabilities. This excellent performance was driven largely by the strong returns from the PBS
                                      Coals transaction (discussed earlier).

                                      The following chart illustrates SRC’s FY 2008 performance in terms of net earnings and net
                                      assets.



                                                    EXHIBIT: SPROTT RESOURCE CORP - FY 2008 NET EARNINGS & NET ASSETS




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                                      As of December 31, 2008, SRC had a very liquid, and highly diversified portfolio of assets. It
                                      balance sheet was 64% in cash & cash equivalents, 20% in gold & silver bullion, and the
                                      remainder in various securities and investments.

                                      The following chart shows the composition of SRC’s balance at the end of FY 2008.



                                                       EXHIBIT: SPROTT RESOURCE CORP - FY 2008 ASSET COMPOSITION




                                      The FY 2008 financial performance and early record of success lends credence to SRC’s
                                      strategy and its ability to generate exceptional long-term shareholder returns.


                                      Most Recent Quarter: 3Q 2009 - Results of Operations


                                      For the majority of FY 2009, SRC has been relatively cautious due to the uncertain economic
                                      environment, and the company has been content to remain with a high degree of cash and
                                      liquid securities, so that it would be able to make acquisitions of distressed or strategic assets.

                                      In terms of reviewing financial performance, since SRC is primarily involved in investing in
                                      natural resource companies, and does not – at this time – have material regular operating
                                      revenues, it is best to look at the company’s assets, or more specifically, net assets, as a
                                      measure of financial performance.

                                      As of September 30, 2009, SRC had net assets of C$ 294.4 million, or C$ 3.46 per share. Net
                                      assets are defined as total assets minus total liabilities. This compares to net assets of C$ 284.8
                                      million at the end of 2008.



                                                      EXHIBIT: SPROTT RESOURCE CORP – 3Q09 RESULTS OF OPERATIONS




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                                      It is important to note that the majority of those assets continue to be high-quality and liquid,
                                      which underpin the share value. The breakdown of major items, as of September 30th, is as
                                      follows:

                                             1.   Cash & Cash Equivalents = C$ 67.2 million (C$ 0.79 / share)

                                             2.   Gold & Silver Bullion = C$ 87.9 million (C$ 1.03 / share)

                                             3.   Short-Term Investments (primarily T-Bills) = C$ 75.9 million (C$ 0.89 / share)

                                      In short, the net asset value of SRC is underpinned by high-quality, highly liquid assets and
                                      securities.

                                      B.     Valuation

                                      Valuation is not a straight-forward exercise for Sprott Resource Corp because of the Company’s
                                      unique business model, where it invests & incubates early-stage (often private) natural resource
                                      companies, the unmatched nature & scale of its assets (e.g. One Earth Farms), its very lean
                                      corporate structure, and its ability to create significant value by tapping capital markets & doing
                                      merchant banking transactions.

                                      Additionally, because SRC does not have material on-going, normal operating revenue at the
                                      current time, and the future value of its incomparable assets is still to be determined, it is AI’s
                                      belief that a Multiple of Net Asset Value (“NAV”) is the most appropriate, if not entirely
                                      sufficient, methodology.

                                      Historically, SRC has historically traded at, or near, the book value of its assets (i.e. at its Net
                                      Asset Value). At times, it has even at a small discount to book value.

                                      The following table shows SRC’s Price-to-NAV (multiple to book) as of September 30, 2009. As
                                      can be seen in the table, as of September 30th, SRC traded more-or-less near book value (1.02).



                                                         EXHIBIT: PRICE-TO-NAV, AT MOST RECENT QUARTER END (Q3 2009)




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                                      Anomalous Investments is of the opinion that Sprott Resource Corp should trade at a higher
                                      multiple to net asset value, likely at a minimum of 1.25 – 1.50 of NAV, for the following reasons.


                                             1.   SRC’s Book Value Does Not Capture the Embedded Value in its Unique Assets

                                                      a.   One Earth Farms – Private asset, held at book value. Enormous potential.

                                                      b.   Orion Oil & Gas – Private asset, held at book value. Enormous potential.

                                                      c.   Gold & Silver Bullion Holdings: Held at historical cost, not market value.

                                             2.   Management’s ability to exploit the differences between private market valuations
                                                  and public market valuations by doing merchant banking transactions.


                                      In terms of assessing the investment merits of SRC, it is important to note that the most
                                      important factor which will drive future share price performance is an increase in book value.
                                      This would be manifested by the monetization of SRC’s unique assets such as One Earth Farms
                                      and Orion Oil & Gas.

                                      In Anomalous Investments’ opinion, this asset monetization is likely to be significant in the
                                      future, due to the distinctive nature of SRC’s assets & SRC’s demonstrated management and
                                      value-creation capabilities, likely propelling SRC’s stock price to a multiple of the current level.

                                      In future reports on Sprott Resource Corp, AI will go into more detailed valuation analyses
                                      including discounted cash flow analysis & comparables analysis. However, suffice it to say at
                                      this time, Sprott Resource Corp represents an unparalleled investment opportunity.


                                      Opportunities for Value Creation


                                      The following exhibit illustrates some of SRC’s significant value creation opportunities over the
                                      next 1-3 years.



                                                      EXHIBIT: SPROTT RESOURCE CORP – VALUE CREATION OPPORTUNITIES




                                      Due to the immense opportunities embedded within SRC’s existing asset base, AI believes that
                                      Sprott Resource Corp will be trading at a multiple of the current share price on a 3-5 year basis.




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                                      VI. Risks

                                      A short and non-exhaustive list of potential risks is listed below.


                                      Revenue Risk


                                      The Company will generate a large portion of its income from dividends received from its
                                      equity investments in natural resource companies and from the disposal of such equity
                                      investments. Natural resource companies are subject to a number of risks including commodity
                                      pricing risk, exploration risk, operational risk, environmental risk and regulatory risk. If such
                                      companies are not profitable or the value of their shares decline, as a result of company specific
                                      issues or market conditions generally, the Company will not be able to generate income and
                                      may suffer losses.


                                      Commodity Prices


                                      The profitability of the Company’s equity investments, its exploration projects and its oil and
                                      natural gas activities will be dependent upon the market price of mineral commodities, oil and
                                      natural gas and other natural resources relevant to the particular equity investment or
                                      exploration project. Mineral and oil and natural gas prices fluctuate widely and are affected by
                                      numerous factors beyond the control of the Company.


                                      Private Companies and Illiquid Securities


                                      The Company invests in securities of private companies. In some cases, the Company may be
                                      restricted by contract or by applicable securities laws from selling such securities for a period of
                                      time. The inability to sell such securities may impair the Company’s ability to exit such
                                      investments when the Company considers it appropriate.


                                      Lack of Control over Companies in which the Company Invests


                                      The Company invests in securities of companies that the Company does not control. These
                                      investments will be subject to the risk that the company in which the investment is made may
                                      make business, financial or management decisions with which the Company does not agree or
                                      that the majority stakeholders of the management of the company may take risks or otherwise
                                      act in a manner that does not serve the Company’s interests. If any of the foregoing were to
                                      occur, the values of investments by the Company could decrease and the Company’s financial
                                      condition and cash flow could suffer as a result.


                                      Key Management and MSA with SCLP


                                      The success of the Company will be largely dependent upon the performance of its key officers,
                                      consultants and employees and upon the relationship between the Company and SCLP
                                      through the MSA. Pursuant to the MSA, SCLP may terminate the MSA upon 180 days notice.
                                      The termination of the MSA by SCLP would have a negative effect on the performance of the
                                      Company. The Company has not purchased any “key-man” insurance with respect to any of its
                                      directors, officers or key employees and has no current plans to do so.




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                                      Lack of Diversification


                                      From time to time, the Company may have only a limited number of investments and projects
                                      and, as a result, the performance of the Company may be adversely affected by the
                                      unfavorable performance of one investment or project. As well, the Company’s investments and
                                      projects are concentrated in the natural resource sector. As a result, the Company’s
                                      performance will be disproportionately subject to adverse developments in this particular
                                      sector.


                                      Due Diligence


                                      Before making investments, particularly investments in securities that are not publicly traded,
                                      the Company conducts due diligence that it deems reasonable and appropriate based on the
                                      facts and circumstances applicable to each investment. When conducting due diligence, the
                                      Company may be required to evaluate important and complex business, financial, tax,
                                      accounting, environmental and legal issues. Outside consultants, legal advisors, accountants
                                      and investment banks may be involved in this due diligence process in varying degrees
                                      depending on the type of investment. Nevertheless, when conducting due diligence and
                                      making an assessment regarding an investment, the Company relies on the resources available
                                      to it, including information provided by the target of the investment and, in some cases, third
                                      party investigations. The due diligence investigation that the Company will carry out with
                                      respect to any investment opportunity may not reveal or highlight all relevant facts that may be
                                      necessary or helpful in evaluating such investment opportunity.


                                      Conflicts of Interest


                                      Certain directors and officers of the Company are or may become associated with other natural
                                      resource companies, SCLP or SAM, which may give rise to conflicts of interest. In accordance
                                      with the Canada Business Corporations Act, directors who have a material interest in any
                                      person who is a party to a material contract or a proposed material contract with the Company
                                      are required, subject to certain exceptions, to disclose that interest and generally abstain from
                                      voting on any resolution to approve the contract. In addition, the directors and the officers are
                                      required to act honestly and in good faith with a view to the best interests of the Company. The
                                      directors and most of the officers of the Company have either other full-time employment or
                                      other business or time restrictions placed on them and accordingly, the Company will not
                                      necessarily be the only business enterprise of these directors and officers.


                                      Regulatory Changes


                                      The Company may be negatively affected by changes in Canadian laws or the laws in which its
                                      subsidiaries operate.


                                      Foreign Political Risk


                                      A portion of the Company’s business involves mineral exploration and development in Peru,
                                      which is exposed to various degrees of political, economic and other risks and uncertainties.
                                      The Company may be affected by local political and economic developments, including
                                      expropriation, nationalization, invalidation of government orders, permits or agreements
                                      pertaining to property rights, political unrest, labor disputes, limitations on repatriation of
                                      earnings, limitations on mineral exports, limitations on foreign ownership, inability to obtain or
                                      delays in obtaining necessary mining permits, opposition to mining from local, environmental or
                                      other non-governmental organizations, government participation, royalties, duties, rates of
                                      exchange, high rates of inflation, price controls, exchange controls, currency fluctuations,
                                      taxation and changes in laws, regulations or policies as well as by-laws and policies of Canada
                                      affecting foreign trade, investment and taxation.


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                                      Permits and Government Regulation


                                      Exploration operations by the Company or its joint venture partners may require licenses and
                                      permits from various governmental authorities in Canada or other countries, as applicable, to
                                      carry out exploration and development and its projects. Obtaining permits can be a complex,
                                      time-consuming process. There can be no assurance that the Company or its joint venture
                                      partners will be able to obtain the necessary licenses and permits on acceptable terms, in a
                                      timely manner or at all.


                                      Environmental Regulations


                                      Exploration operations by the Company or its joint venture partners may be subject to foreign
                                      environmental laws and regulations, which may materially adversely affect future operations.
                                      These laws and regulations control the exploration and development of mineral properties and
                                      their effects on the environment, including air and water quality, mine reclamation, waste
                                      handling and disposal, the protection of different species of plant and animal life, and the
                                      preservation of lands. These laws and regulations will require the Company or its joint venture
                                      partners to acquire permits and other authorizations for certain activities. There can be no
                                      assurance that the Company or its joint venture partners will be able to acquire such necessary
                                      permits or authorizations on a timely basis, if at all.


                                      Title to Properties


                                      Acquisition of rights to the mineral properties is a very detailed and time-consuming process.
                                      Title to, and the area of, mineral properties may be disputed. The Company cannot give an
                                      assurance that title to such properties will not be challenged or impugned. The Company can
                                      never be certain that it will have valid title to its mineral properties. Mineral properties
                                      sometimes contain claims or transfer histories that examiners cannot verify, and transfers under
                                      foreign law are often complex. A successful claim that the Company does not have title to a
                                      property could cause the Company to lose its rights to that property, perhaps without
                                      compensation for its prior expenditures relating to the property.


                                      Repatriation of Earnings


                                      There is no assurance that any countries other than Canada in which the Company carries on
                                      business or may carry on business in the future will not impose restrictions on the repatriation of
                                      earnings to foreign entities.


                                      Uncertainty of Reserve Estimates


                                      There are numerous uncertainties inherent in estimating quantities of oil and natural gas
                                      reserves, including many factors beyond the Company’s control. Reserve data represent
                                      estimates only.

                                      In general, estimates of economically recoverable oil and natural gas reserves and the future
                                      net cash flows therefrom are based upon a number of variable factors and assumptions, such as
                                      expected reservoir characteristics based on geological, geophysical and engineering
                                      assessments, future production rates based on historical performance and expected future
                                      operating and investment activities, future oil and natural gas prices and quality differentials,
                                      assumed effects of regulation by governmental agencies and future development and
                                      operating costs, all of which may vary considerably from actual results.




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                                      For those reasons, estimates of the economically recoverable oil and natural gas reserves
                                      attributable to any property or group of properties, classification of such reserves based on risk
                                      of recovery and estimates of future net revenues expected therefrom, prepared at different
                                      times, may vary substantially. The actual production, revenues, taxes and development and
                                      operating expenditures with respect to the Company’s reserves will vary from such estimates
                                      and such variances could be material.


                                      Oil and Natural Gas Operational Risk


                                      The Company’s oil and natural gas operations are subject to certain risks and liabilities inherent
                                      in the oil and natural gas business, some of which may not be covered by insurance. The
                                      Company’s business and operations, including the drilling of oil and natural gas wells and the
                                      production and transportation of oil and natural gas, are subject to certain risks inherent in the
                                      oil and natural gas business. These risks and hazards include encountering unexpected
                                      formations or pressures, blow-outs, craterings and fires. The foregoing hazards could result in
                                      personal injury, loss of life, reduced production volumes or environmental and other damage to
                                      the Company’s property and the property of others. The Company cannot fully protect against
                                      all of these risks, nor are all of these risks insurable. Although the Company carries liability,
                                      business interruption and property insurance in respect of such matters, there can be no
                                      assurance that insurance will be adequate to cover all losses resulting from such events or that
                                      the lost production will be restored in a timely manner.




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                                      VII. Conclusion


                                      Sprott Resource Corp represents a unique & unparalleled investment opportunity in the natural
                                      resources sector.

                                      Led by a world-class management team, SRC provides investors with a well-diversified portfolio
                                      of natural resource assets in oil & gas, agriculture and the precious metals.

                                      This portfolio includes several inimitable assets including One Earth Farms, which has the goal
                                      to be the world’s largest farm, and Orion Oil & Gas, led by a highly experienced management
                                      team.

                                      Moreover, SRC has already demonstrated its ability to create significant shareholder value as
                                      illustrated by the PBS Coals transaction, which generated a 338% return & profits of $185
                                      million in the span of about 1-year.

                                      Going forward, SRC has similar high-potential opportunities through the development, and
                                      eventual monetization, of One Earth Farms Corp and Orion Oil & Gas.

                                      With an extremely strong balance sheet, significant management & insider ownership, capital
                                      markets expertise & an aggressive share buyback program supporting the share price, SRC is
                                      well positioned to deliver outstanding share price performance – likely a multiple of the current
                                      level – over the years to come.

                                      SRC is “as good as it gets”, and as such, is a core, long-term investment in the natural
                                      resources sector.




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                                      VIII. Appendices


                                      A.     Financial Statements


                                      Balance Sheet



                                      The exhibit below shows SRC’s balance sheet as of September 30, 2009.




                                                 EXHIBIT: SPROTT RESOURCE CORP BALANCE SHEET AS AT SEPTMEBER 30, 2009




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                                      Income Statement




                                      The exhibit below shows SRC’s statement of operations for the period ending September 30,
                                      2009.




                                        EXHIBIT: SPROTT RESOURCE CORP - STATEMENT OF OPERATIONS ENDING SEPTMEBER 30, 2009




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                                      Cash Flow Statement




                                      The exhibit below shows SRC’s cash flow statement for the period ending September 30, 2009.




                                             EXHIBIT: SPROTT RESOURCE CORP - CASH FLOW STATEMENT ENDING SEPTMEBER 30, 2009




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                                      B.     Board of Directors



                                      Eric Sprott (Chairman), President and CEO of Sprott Inc.

                                      Mr. Sprott has accumulated more than 35 years of experience in the investment industry,
                                      founding Sprott Securities Inc. in 1981.

                                      While at Sprott Securities Inc., Mr. Sprott supervised all aspects of the business, serving as
                                      Chief Executive Officer, President, Director of Investment Strategy, and Chairman of the Risk
                                      Management Committee. After establishing Sprott Asset Management Inc. in December 2001
                                      as a separate entity, Mr. Sprott divested his entire ownership of Sprott Securities Inc. to its
                                      employees.

                                      Mr. Sprott is currently the Chairman and Chief Executive Officer of Sprott Asset Management
                                      Inc. and is the portfolio manager responsible for Sprott Hedge Fund L.P., Sprott Hedge Fund
                                      L.P. II, Sprott Offshore Fund, Sprott Canadian Equity Fund, Sprott Energy Fund, Sprott
                                      Bull/Bear RSP Fund and the Sprott Managed Accounts.

                                      Mr. Sprott graduated with a Bachelor of Commerce from Carleton University in 1965 and was
                                      awarded an Honorary Doctorate from Carleton University in 2003. Mr. Sprott received his
                                      Chartered Accountant designation in 1968.


                                      John Embry (Director), Chief Investment Strategist, Sprott Asset Management Inc.

                                      Mr. Embry has served as Chief Investment Strategist of Sprott Asset Management Inc. since
                                      2003, focusing on the Sprott Gold and Precious Minerals Fund and the Sprott Strategic
                                      Offshore Gold Fund Ltd. Mr. Embry has researched the gold sector for more than 30 years and
                                      has accumulated industry experience as a portfolio management specialist since 1963.

                                      After graduating from the University of Manitoba with a Bachelor of Commerce degree, Mr.
                                      Embry began his investment career as a Stock Selection Analyst and Portfolio Manager at Great
                                      West Life. He later became Vice President of Pension Investments for the firm, where he served
                                      for a total of 23 years. Mr. Embry has also held the position of Vice-President, Equities and
                                      Portfolio Manager at RBC Global Investment Management.


                                      Kevin Bambrough, Chief Executive Officer, President, Director

                                      Mr. Bambrough joined Sprott Resource Corp. in 2007 as President and Chief Executive Officer,
                                      bringing nearly a decade of investment industry experience.

                                      He also serves as a Market Strategist for Sprott Asset Management Inc., a position he has held
                                      since 2006. Prior to his role as Market Strategist, Mr. Bambrough held the position of Research
                                      Analyst with Sprott Asset Management Inc.

                                      Since 2003, Mr. Bambrough has focused his analysis on the resource sector with particular focus
                                      on coal and uranium mining. In his role as Market Strategist, he also spends a significant
                                      portion of his time examining global economic activity, geopolitics, and commodity markets in
                                      order to identify new trends and investment opportunities.

                                      In May 2006, he co-authored a report with Eric Sprott entitled: Investment Implications of an
                                      Abrupt Climate Change.




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                                      Terrence Lyons (Independent Director), Chairman, Northgate Minerals Corporation

                                      Mr. Lyons is currently Chairman of Northgate Minerals Corp., and serves as a director or officer
                                      of several other public corporations including BC Pacific Capital Corp., Canaccord Capital Inc.,
                                      Diamonds North Resources Ltd., and the Vancouver Convention Centre Expansion Project Ltd.,
                                      as well as several private corporations. He is a past Vice Chairman of Battle Mountain Gold
                                      Company, former Chairman of Westmin Resources Limited and is currently Chairman of the
                                      Mining Association of BC.

                                      After completing a Bachelor of Science in Civil Engineering, Mr. Lyons attended the University
                                      of Western Ontario, graduating with an MBA in 1974.



                                      A. Murray Sinclair (Independent Director), Co-Chairman of Quest Capital Corp.

                                      Mr. Sinclair has served as Managing Director of Quest Capital Corp. since 2002.

                                      Previously, Mr. Sinclair was the President of Quest Investment Corp., a publicly listed merchant
                                      bank based in Vancouver. Mr. Sinclair co-founded Quest Ventures Ltd., a privately held
                                      merchant bank based in Vancouver, which specialized in bridge loans and arbitrage. Prior to
                                      Quest Ventures, Mr. Sinclair was Managing Director of Quest Oil & Gas, which was sold to
                                      Enermark Income Fund for $147 million in 1997.

                                      Currently, Mr. Sinclair is a director of a number of public companies. He earned an Honours

                                      Bachelor of Commerce from Queens University in 1984.



                                      Michael Winn (Independent Director), President of Terrasearch Inc.

                                      Mr. Winn is currently President of Terrasearch Inc., a consulting company that provides analysis
                                      on mining and energy companies.

                                      Prior to forming his own company in 1997, Mr. Winn spent four years as an analyst for Global
                                      Resource Investments, Ltd, a Southern California based brokerage firm, where he was
                                      responsible for the evaluation of emerging oil and gas, and mining companies. Mr. Winn has
                                      worked in the oil and gas industry since 1983, and the mining industry since 1992.

                                      He is the director of several companies that are involved in mineral exploration in Canada, Latin
                                      America, Europe and Africa.

                                      Mr. Winn has completed graduate course work in accounting and finance, and received his B.S.
                                      in geology from the University of Southern California.




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                                      C.     Sprott Asset Management Overview


                                      Overview


                                      Sprott Asset Management is an extremely well-regarded Canadian money management firm,
                                      and iconic natural resource investors, with approximately $4.5 billion in assets under
                                      management.

                                      Sprott Asset Management LP (SAM) is the successor to Sprott Asset Management Inc. which
                                      was founded in 2000, after the permanent separation from Sprott Securities that established in
                                      1981. SAM is a fund company dedicated to achieving superior returns for its investors over the
                                      long term. Sprott Asset Management LP currently manages a number of long/short equity
                                      strategies and mutual funds. Sprott Private Wealth LP provides advisory services to high net
                                      worth individuals. Sprott Inc. is the parent company of SAM LP and SPW LP.

                                      Sprott Asset Management LP is a member of the Ontario Securities Commission (OSC) as a
                                      limited market dealer/investment counsel and portfolio manager, and is also a member of the
                                      Alternative Investment Management Association (AIMA) Canada.


                                      Management History


                                      In 1981, Eric Sprott, CA, founded Sprott Securities Ltd. (now Cormark Securities Inc.), an
                                      institutional brokerage firm focused on small-to-mid capitalization companies, servicing
                                      Canadian corporate and institutional investors.

                                      In the year 2000, Eric Sprott made the decision to focus solely on the investment management
                                      business. Accordingly, the “investment management division” of Sprott Securities Inc. (now
                                      Cormark Securities Inc.), was spun-off to form a separate entity now known as Sprott Asset
                                      Management LP. Consequently, SAM was founded with an already established successful
                                      historical track record of managing assets through Sprott Managed Accounts since 1981 and
                                      the Sprott Canadian Equity Fund since 1997. Sprott Securities Inc. was sold to its employees in
                                      2002, leaving Eric Sprott and the directors and officers of SAM with no remaining interest in the
                                      firm.

                                      On May 15, 2008, Sprott Inc. successfully completed a $200 million initial public offering by
                                      way of a secondary offering of common shares. Sprott Inc.’s common shares are listed on the
                                      Toronto Stock Exchange under the symbol “SII”.


                                      Awards & Achievements


                                      Sprott Asset Management has been recognized for its achievements & received numerous
                                      award over the years. A small sample is listed below.

                                      Globefund

                                                Sprott Canadian Equity Fund - #1 Fund in Canada for ten-year return, March 2009.

                                      Absolute Return Awards – Hedge Fund Intelligence

                                                Sprott Hedge Fund L.P. – Finalist; U.S. Equity Category 2008.

                                                Sprott Asset Management – Finalist; ‘Management Firm of the Year,’ 2008.

                                      Barron’s

                                                Sprott Offshore Fund Ltd. #49 - 'The Hedge Fund 100', May 11, 2009.

                                                Sprott Offshore Fund Ltd. #33 & Sprott Opportunities Hedge Fund LP #50 – “The
                                                 World’s 75 Best Hedge Funds”, April 14, 2008.




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                                      IX. Disclaimer & Disclosures


                                      A.     Disclaimer

                                      Anomalous Investments, nor its author(s), are licensed investment representatives, and this
                                      report should not be construed either as a solicitation for the purchase of securities nor an offer
                                      of securities.

                                      This report, and Anomalous Investments’ advisory services in general, are intended for
                                      sophisticated investors, who are knowledgeable about investments, capital markets and
                                      finance.

                                      The information in this document has been obtained from sources believed to be reliable, and
                                      while all efforts have been made to provide accurate and timely information, no guarantee can
                                      be made as to the accuracy of data, information and charts provided.

                                      Our analysis & ratings are intended for informational purposes only and readers are
                                      recommended to consult their financial advisors prior to purchasing or selling any security
                                      recommended.

                                      Estimates and projections contained herein, whether or not our own, are based on assumptions
                                      which we believe to be reasonable.

                                      Many of the companies and securities discussed in Anomalous Investments have small market
                                      capitalizations and may be illiquid in terms of trading volume. Due care and diligence should
                                      be taken when purchasing and/or selling any such securities.

                                      All responsibility for investment decisions lies completely with the individual making that
                                      decision.

                                      Anomalous Investments prides itself on being an independent and unbiased information
                                      source, and is solely motivated to provide thoughtful & diligent research to its clients. It
                                      accepts no payment for stock recommendations, nor has any investment banking relationships.

                                      Persons associated with Anomalous Investments may, at times, have positions in the securities
                                      discussed. AI will endeavor to disclose all such situations, as appropriate.

                                      Anomalous Investments, and its author(s), reserve all rights. It is not permitted to forward,
                                      exchange or otherwise distribute this report without express written permission.



                                      B.     Disclosures


                                      AI management own shares in Sprott Resource Corp. They are bullish on the long-term
                                      prospects for the company.




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                                      X. Anomalous Investments


                                      A. Company Profile


                                      AI is a unique, independent, value-added advisory service focused on finding small,
                                      undiscovered Special Situations in natural resources and commodities. AI is focused primarily
                                      on precious metals (gold & silver), oil & gas and agriculture.

                                      AI, which is based out of Hong Kong, is a completely independent advisory service, and is not
                                      affiliated with any banking or financial institutions and does not accept or receive payments
                                      from any companies.

                                      AI has a simple - yet ambitious - goal: Identify top centile (1%) investments, on a risk/reward
                                      basis, in the natural resources industry.

                                      AI is focused on rigorous analysis, utilizing numerous analytic frameworks, including its own, in
                                      order to analyze & synthesize data into knowledge and actionable intelligence, and distill
                                      attractive investment opportunities for its clients.

                                      AI employs a value-oriented investment approach with a medium-to-long-term investment
                                      perspective. Adherence to risk management principles are core to AI's approach.

                                      AI is focused on uncovering small, under-researched companies in the natural resource sector.
                                      Due to the abundance of information asymmetries in the small capitalization space, AI focuses
                                      primarily on small caps ($250 million - $ 1 Billion), micro caps ($50 million - $250 million), and in
                                      highly selective cases, nano caps (less than $50 million).

                                      AI is a premium service for sophisticated investors including money managers, hedge funds,
                                      institutional investors, analysts, investment advisors & high net worth individuals.

                                      Because of the special situation nature of the companies covered, the number of subscriptions
                                      to Anomalous Investments and distribution of reports is strictly limited.

                                      AI is led by its President, Matthew Schroeder. Ivy-league educated, Mr. Schroeder graduated
                                      with distinction from Cornell University & earned his MBA from the University of California,
                                      Berkeley. Mr. Schroeder worked for Citigroup for 7 years in a variety of international postings
                                      prior to founding Anomalous Investments, and has been researching and investing in the
                                      natural resources sector for almost a decade.

                                      More information about Anomalous Investments can be found AI’s website:
                                      www.anomalousinvestments.com




                                      B. Contact Details


                                      For more information about Anomalous Investments, please contact:


                                      Matthew T. Schroeder
                                      President
                                      Anomalous Investments
                                      E-Mail: matthew.schroeder@anomalousinvestments.com




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