Market Overview

Sprott Resource Lending Corp. Declares an Increased Dividend and Provides Business Update


TORONTO, ONTARIO--(Marketwire - Jan. 13, 2012) - Sprott Resource Lending Corp. (the "Company" or "Sprott Resource Lending") (TSX: SIL)(NYSE Amex:SILU) today reports that its Board of Directors approved an increase to the fourth quarter dividend to $0.015 per common share, which it notes is supported by cash flows from the continued growth of its resource loan portfolio.

As of December 31, 2011, Sprott Resource Lending had a resource loan portfolio of approximately $120 million, and held $77 million in cash and marketable bonds. The average cash interest received on outstanding loans during the year was approximately 11.5%, while management estimates that the average total rate of return including realized and unrealized bonus arrangements was approximately 16.5%. Peter Grosskopf, President and CEO stated, "We are pleased by the performance of our resource loan portfolio during our first full year of operations. Not only was the average rate of return within our expectations, but we have a high degree of confidence in each loan position despite a challenging year for the resource markets overall. Further, our pipeline continues to grow as the relative attractiveness of our capital solution becomes better known within the resource industry."

Dividend Details

The Board of Directors has approved the payment of a quarterly dividend of $0.015 per common share, which is an increase from prior quarters and reflects the continued growth of the resource loan portfolio. The dividend of $0.015 per common share is for payment on February 10, 2012 to shareholders of record on January 27, 2012. The Company hereby notifies its shareholders that it will designate the full amount of such dividend as an "eligible dividend" for purposes of the Income Tax Act (Canada).


Under the Company's normal course issuer bid ("NCIB") previously announced on March 9, 2011, for 2011 and 2012 to-date, the Company has purchased 1,464,212 shares under the NCIB leaving the Company with common shares of 154,180,546 outstanding. Sprott Resource Lending plans to release its audited annual financial results in early March 2012.

About Sprott Resource Lending Corp.

Sprott Resource Lending specializes in bridge and mezzanine lending to precious and base metal mining, exploration and development companies and energy companies on a global basis. Headquartered in Toronto, the Company seeks to generate income from lending activities as well as the upside potential of bonus arrangements with borrowers generally tied to the underlying property or shares of the borrower.

Sprott Resource Lending ( was founded by Quest Capital Corp. and Sprott Lending Consulting Limited Partnership. Sprott Lending Consulting LP is a wholly owned subsidiary of Sprott Inc., the parent of Sprott Asset Management LP (, a leading Canadian independent money manager.

For more information about Sprott Resource Lending, please visit SEDAR (


This press release may include certain statements that constitute "forward-looking statements", and "forward looking information" within the meaning of applicable securities laws ("forward-looking statements" and "forward-looking information" are collectively referred to as "forward-looking statements", unless otherwise stated). Such forward-looking statements involve known and unknown risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Forward-looking statements may relate to the Company's future outlook and anticipated events or results and may include statements regarding the Company's future financial position, business strategy, budgets, litigation, projected costs, financial results, taxes, plans and objectives. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends affecting the financial condition of our business. These forward-looking statements were derived utilizing numerous assumptions regarding expected growth, results of operations, performance and business prospects and opportunities that could cause our actual results to differ materially from those in the forward-looking statements. While the Company considers these assumptions to be reasonable, based on information currently available, they may prove to be incorrect.

Forward-looking statements should not be read as a guarantee of future performance or results. Forward-looking statements are based on information available at the time those statements are made and/or management's good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward looking statements. To the extent any forward-looking statements constitute future-oriented financial information or financial outlooks, as those terms are defined under applicable Canadian securities laws, such statements are being provided to describe the current potential of the Company and readers are cautioned that these statements may not be appropriate for any other purpose, including investment decisions. Forward-looking statements speak only as of the date those statements are made. Except as required by applicable law, we assume no obligation to update or to publicly announce the results of any change to any forward-looking statement contained or incorporated by reference herein to reflect actual results, future events or developments, changes in assumptions or changes in other factors affecting the forward looking statements. If we update any one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. You should not place undue importance on forward-looking statements and should not rely upon these statements as of any other date. All forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary notice.

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