Press Release

Sprott Resource Corp. Announces Signing of Support Agreements in respect of the Acquisition of WestFire Energy Ltd. by Guide Exploration Ltd.

TORONTO, Aug. 9, 2012 /CNW/ - Sprott Resource Corp. (TSX: SCP) - Sprott Resource Corp. ("SRC") announced today that, through Sprott Resource Partnership, it has entered into support agreements in respect of the recently announced acquisition of WestFire Energy Ltd. ("WestFire") by Guide Exploration Ltd. ("Guide"), pursuant to which it has agreed to vote its shares in WestFire and Guide in favour of and to support the transaction (the "Transaction"). The newly formed company will be named Long Run Exploration Ltd. ("Long Run").

"We believe that this transaction is in the best interests of both Guide and WestFire shareholders, as it creates a leading intermediate oil and gas company led by a top-tier management team and board of directors," said Kevin Bambrough, President & CEO of SRC.

Pursuant to the Transaction, Guide shareholders will receive an exchange ratio equal to 0.4167 of a WestFire common share for each Guide common share. SRC owns 13,153,936 common shares of WestFire and 15,512,858 common non-voting shares of WestFire. In addition, SRC owns 16,769,477 common shares of Guide.

Completion of the Transaction is subject to the satisfaction of a number of conditions, including the approval of the shareholders of each of WestFire and Guide.

About Sprott Resource Corp.

SRC is a Canadian-based company, the primary purpose of which is to invest and operate in natural resources.  Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. SRC is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting Limited Partnership (SCLP), of which Sprott Inc. is the sole limited partner.  Pursuant to a management services agreement between SCLP and SRC, SCLP provides day-to-day business management for SRC as well as other management and administrative services.  SRC invests and operates through Sprott Resource Partnership (SRP), a partnership between SRC and Sprott Resource Consulting Limited Partnership, an affiliate of SCLP which is the managing partner of SRP.

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the Transaction and its possible completion as well as the attributes of Long Run.  Forward-looking statements or information are based on a number of material factors, expectations or assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although SRC believes the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because SRC can give no assurance that such expectations will prove to be correct.  The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements.

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and SRC does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

SOURCE: Sprott Resource Corp.