TORONTO, ONTARIO--(Marketwire - Sept. 7, 2012) - Sprott Resource Lending Corp. (the "Corporation" or "Sprott Resource Lending") (TSX:SIL)(NYSE MKT:SILU) today reported that it has completed the sale of its 75% interest in Castle Mountain Venture, the owner of the Castle Mountain property, a former operating gold mine in the State of California. All figures below are in Canadian dollars.

The sale of the Corporation's interest in Castle Mountain Venture was completed by selling Viceroy Gold Corporation, the Corporation's wholly-owned subsidiary. A portion of the purchase price was satisfied on closing by the issuance of 4 million common shares of Telegraph Gold Inc., a private Canadian gold exploration company with mineral assets in the State of California ("Telegraph" or the "Purchaser"). The balance of the purchase price is due in two installments of $3 million and $5 million on the earlier of the achievement of certain milestones but no later than three and six years from closing, respectively. The second and third installments of the purchase price may also be satisfied by the issuance of common shares of the Purchaser, provided that Telegraph's shares are listed on a recognized stock exchange. The common shares of Telegraph received by Sprott Resource Lending on closing represent approximately 9.4% of the current issued and outstanding common shares of Telegraph. As at June 30, 2012, the Corporation's net investment in Castle Mountain Venture and related holding companies was $0.2 million. Separately, Telegraph has also purchased the remaining 25% of Castle Mountain Venture not beneficially owned by Sprott Resource Lending.

Telegraph has entered into an acquisition agreement with Foxpoint Capital Corp., a capital pool company listed on the TSX Venture Exchange, which intends to acquire all of the issued and outstanding common shares in the capital of Telegraph as part of its "Qualifying Transaction".

Closing costs, including commissions, are expected to be in the range of 26% of the purchase price, part of which will be paid as the Corporation receives the purchase price. Additionally, Sprott Resource Lending expects to incur US taxes of approximately 35% on the net proceeds.

About Sprott Resource Lending Corp.

Sprott Resource Lending specializes in lending to resource 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. Pursuant to a management services agreement and partnership agreement, Sprott Lending Consulting Limited Partnership provides Sprott Resource Lending ([ www.sprottlending.com ]) day to day business management as well as other management and administrative services. 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 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 Corporation's future outlook and anticipated events or results and may include statements regarding the Corporation's future proceeds from the sale, 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 Corporation 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, including the anticipated benefits, proceeds and closing costs of the sale, anticipated taxes on net proceeds, the Purchaser's completion of an acquisition agreement with a capital pool company and the completion of a "Qualifying Transaction", 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 Corporation 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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