Press Release

Sprott Resource Corp. Announces that its Subsidiary, One Earth Farms Corp., Provided an Update Regarding its Operations and 2012 Outlook

TORONTO, Jan. 31, 2012 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") announced that its subsidiary, One Earth Farms Corp. ("One Earth Farms"), held an investor conference call at 4:00 p.m. on January 31, 2012 (the "Conference Call"). The Conference Call was hosted by Stephen Yuzpe, CFO of SRC and Chairman of the Board of Directors of One Earth Farms, and Larry Ruud, President and CEO of One Earth Farms.  The replay of the conference call can be accessed by phone until April 27, 2012 by dialing 1-866-551-4520 or 1-212-401-6750 and entering pass code 279293 followed by the number sign.  The replay will also be available on the SRC website.

Mr. Yuzpe reported that One Earth Farms is not expected to have significant external financing needs in 2012.  However, it is anticipated that external financing will be required for 2013, which will be a function of the company's financial performance in 2012 and growth expectations of both the cattle and crop divisions of One Earth Farms.  One Earth Farms has made very good progress towards its vision of becoming an integrated business with the strategic opportunity to transform Canadian agriculture by reversing the current model of buying retail and selling wholesale.  In line with this vision, management of One Earth Farms also sees the potential for additional shareholder value creation through the development of branded food products grown by its cattle and crop divisions.  As such, One Earth Farms' management is actively seeking marketing and branding experts and partnerships to assist with researching and planning this project.

Mr. Ruud provided an update with respect to One Earth Farms' continued expansion in Alberta and Saskatchewan in 2011, further mitigating weather and commodity risks.  In addition to an expanded geographical base, One Earth Farms has achieved strong growth in its base cattle herd, an area where management sees synergies with the crop division.  One Earth Farms has developed natural protocols to raise cattle that are hormone and antibiotic free and will begin testing the premiums for this beef in the market in 2012.

An update with respect to One Earth Farms' crop yields in 2011 was also provided by Mr. Ruud, who noted that overall yields were unfortunately below plan.  While the yields were not far off the long term regional averages in Alberta, the yields were below budget in Saskatchewan, partly as a result of bad weather and continued moisture in the area.  Crop yields were also impacted by the acquisition and integration of new land and labour.

One Earth Farms' objectives for 2012 include, amongst others, improving operational efficiency while achieving moderate growth.  Management is currently targeting an increase to approximately 200,000 acres for crop and cattle operations, with a target of 8,300 cows and 4,300 yearlings and bulls in 2012.

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.

About One Earth Farms Corp.

One Earth Farms is a large corporate grain and cattle farm primarily operating in partnership with the First Nations on First Nations farmland in the Prairie Provinces in Canada.

Forward Looking Statements

Certain statements contained herein may constitute "forward-looking statements" or "forward-looking information" under applicable securities laws. Some of the forward-looking statements may be identified by words such as "expects", "intends", "anticipates", "estimates", "should", "believes", "plans", "outlook", "objective" and similar expressions. Forward-looking statements, which are based on management's current expectations and assumptions, including financing requirements, marketing and branding strategies, cattle program developments and crop yields involve a number of risks and uncertainties. Actual results, benefits or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Factors that could cause actual results, benefits, performance or achievements to differ from those expressed in, or implied by, these forward-looking statements include, without limitation, those listed under the heading "Risks Relating to the Agricultural Segment - One Earth Farms" in SRC's Annual Information Form dated March 28, 2011, regulatory risks, environmental risks, operational risks, and other risks associated with a large scale farming operation. No assurance can be given that any events anticipated by these forward-looking statements will occur.These forward-looking statements are made as at the date of this news release. SRC does not undertake any obligation to publicly update or revise any of these forward-looking statements, except as required by applicable securities laws.