Sprott Resource Corp. (fka SCPZF)

[NYBob]

Sprott Resource Lending Corp. Updates Loan Portfolios, Its Future Dividend Plans and Seeks Regulatory Approval for a Normal Course Issuer Bid
TORONTO, ONTARIO, Feb. 9, 2011 (Marketwire) --

Sprott Resource Lending Corp.
(the "Corporation" or "Sprott Resource Lending") (TSX:SIL)(NYSE
Amex:SILU) continues to work towards investing its cash position
in a resource lending portfolio.

As at December 31, 2010 Sprott Resource Lending had funded new resource loans of $5 million and, subsequent to year end, has entered into an additional $34 million of resource loans.
These amounts include a US$25 million loan to African Minerals Limited, for which the Corporation acted as lead arranger for a US$418 million loan facility.
Further, Sprott Resource Lending has extended preliminary commitments for $30 million in new loans which are sufficiently advanced in the documentation process for management to believe that closing is likely to occur.

During the last quarter of 2010, Sprott Resource Lending grew its cash and marketable securities position by monetizing approximately $27 million in real estate loans and a further
$9 million during January 2011.
As of February 8th, 2011 the Corporation's cash and marketable
securities balance is approximately $104 million.

Peter Grosskopf, President and Chief Executive Officer stated,
"With the recent surge in the equity markets, many resource companies are foregoing mezzanine financing and opting to source more permanent capital.
Despite this, with a strong loan pipeline, we are well on our way to profitably deploying our growing cash position into the sector.
We intend to recommence the payment of a regular dividend and will do so as soon as supported by lending cash flow.
In addition, we feel the current market value of shares can provide good value and to that end, we are seeking regulatory approval to make a normal course issuer bid which will benefit continuing shareholders."

Sprott Resource Lending intends to re-institute the payment of a regular dividend once the aggregate size of its total resource loan portfolio is sufficient to fund the dividend;
this amount is currently estimated to be approximately $100 million.

The Corporation also intends to seek regulatory approval to make
a normal course issuer bid ("NCIB"), under which the Corporation
may make open market purchases of its common shares over the TSX.


The Corporation's directors believe that the purchase from time to time of common shares of the Corporation may be a worthwhile investment for the Corporation that should benefit continuing shareholders.
The Corporation's directors believe that normal course issuer bid purchases of shares for cancellation may, by reducing the number of outstanding shares, reduce the discount that may exist between the market price of its shares and the Corporation's net asset value per share.

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 oil and gas companies on a global basis.
Headquartered in Toronto, the Corporation 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
(www.sprottlending.com) 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
(www.sprott.com), a leading Canadian independent money manager.

For more information about Sprott Resource Lending,
please visit SEDAR (www.sedar.com).

CAUTION REGARDING FORWARD-LOOKING INFORMATION

This press release may include certain statements --- Forward-looking statements speak only as of the date those statements are made. -- All forward looking statements contained in this press release are expressly qualified in their entirety by this cautionary notice.

Sprott Resource Lending Corp.
President and CEO
416.943.4998

Sprott Resource Lending Corp.
CFO
416.943.4698

http://www.sprottlending.com

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