Sprott Resource Corp. Announces Launch of Independence Contract Drilling, Inc.'s Initial Public Offering

TORONTO, July 28, 2014 /CNW/ - Sprott Resource Corp. ("SRC" or "the Company") (TSX: SCP) announced today that its investee company, Independence Contract Drilling, Inc. (NYSE: ICD), has launched its initial public offering of 10,000,000 shares of common stock. The shares are expected to trade on the New York Stock Exchange under the ticker symbol "ICD." The underwriters of the offering will have a 30-day option to purchase up to an additional 1,500,000 shares from Independence Contract Drilling to cover over-allotments, if any.

Morgan Stanley, RBC Capital Markets and Tudor, Pickering, Holt & Co. are acting as book-running managers for the offering. Canaccord Genuity, Capital One Securities, Cowen and Company, FBR, IBERIA Capital Partners L.L.C. and Johnson Rice & Company L.L.C. are acting as co-managers. The offering is being made only by means of a prospectus. Once it becomes available, potential investors can obtain a prospectus that meets the requirements of Section 10 of the Securities Act of 1933 from:

Morgan Stanley & Co. LLC
Attn: Prospectus Department
180 Varick Street, 2nd Floor
New York, NY 10014

RBC Capital Markets, LLC
Attn: Prospectus Department
Three World Financial Center
200 Vesey Street, 8th Floor
New York, New York 10281
Telephone: [phone]

Tudor, Pickering, Holt & Co. Securities, Inc.
Attn: Prospectus Department
Heritage Plaza
1111 Bagby, Suite 5100
Houston, TX 77002
Telephone: [phone]

When available, to obtain a copy of the prospectus free of charge, visit the U.S. Securities and Exchange Commission's website, www.sec.gov, and search under the registrant's name, "Independence Contract Drilling, Inc."

A registration statement relating to these securities has been filed with the SEC, but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking information and statements (collectively referred to herein as "Forward-Looking 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 Statements. In particular, but without limiting the forgoing, this news release contains Forward-Looking Statements pertaining to the proposed initial public offering by Independence Contract Drilling, Inc. ("ICD").  Forward-Looking Statements are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect, including, but not limited to the assumption that the market and services rates for land-based contract drilling services will be consistent with the current environment.  Although Sprott Resource Corp. ("SRC") believes the expectations and assumptions reflected in such Forward-Looking Statements are reasonable, undue reliance should not be placed on Forward-Looking Statements because SRC can give no assurance that such expectations and assumptions will prove to be correct. The Forward-Looking Statements included in this news release are not guarantees of future performance and should not be unduly relied upon.  Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such Forward-Looking Statements, including, without limitation: (i) adverse market conditions; (ii) ICD's ability to complete the proposed initial public offering; (iii) the clearance by the relevant regulators of the regulatory filings of ICD relating to the proposed initial public offering; (iv) those risks listed under the heading "Risk Factors" in SRC's annual information form dated March 25, 2014; and (v) other risks, which are beyond the control of SRC or its subsidiaries. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the Forward-Looking Statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements contained in this news release. The Forward-Looking 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, 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.