AIF - Sprott Resource Corp.

to acquire leases on productive land and successfully implement the standard operating procedures. Farming will always
have a component of uncontrollable influences, most of which are related to weather.
One Earth Farms currently has cattle being finished for market under two existing natural and one organic beef brands.
The information obtained through these marketing initiatives will enable One Earth Farms to further develop its marketing
strategy in 2012. Future success of the cattle operations will depend on One Earth Farms' ability to grow the size of its
high quality genetic herd, continue to develop its grass fed, natural protocols, and generate premium revenue.
A GIS project was initiated to provide high resolution satellite imagery on all leased lands. This information will provide
greater accuracy on acres farmed and will form a platform to support enhanced operational decisions and product
traceability. When combined with One Earth Farms' proprietary operations data tracking technology, the completed
system will provide for real-time traceability of all production inputs and crop and livestock grown on the farm.
Overview
CORPORATE SEGMENT
The Corporate Segment includes the Company’s ownership of gold bullion, cash and other short-term investments and
securities of companies in the natural resource sector in respect of which the Company owns less than 50%.
The following is a summary of the principal assets that comprise the Corporate Segment and their values as set out in the
Company’s audited financial statements as at December 31, 2011:
($ in
Asset
thousands)
Cash and Cash Equivalents 15,336
Gold Bullion 117,582
Investment in Stonegate Agricom 17,273
Public Securities 214,903
Investment in WestFire 162,541
Investment in Guide 48,731
Other 3,631
Private Securities 63,886
The Company’s gold bullion is held in the vaults of a Canadian chartered bank in Toronto.
Private and public securities are securities of companies of which the Company owns less than 20% of the outstanding
voting shares. The private securities include the Company’s ownership interest in VAUH, a private company in the United
States with leasehold interests covering a uranium deposit; and Union Agriculture Group (“UAG”), which is focused on
acquiring and farming farmland in Uruguay. The Company has invested $28.7 million in UAG and, according to
information filed by UAG, holds approximately 8.7% of the issued and outstanding shares. The public securities include
the Company’s ownership interest in WestFire, which is engaged in the acquisition, development and production of crude
oil and natural gas in Western Canada; and Guide, an intermediate oil and natural gas company in Western Canada. The
Company has invested $105.9 million and $45.7 million in WestFire and Guide, respectively. According to publically filed
documents, the Company holds approximately 34.5% of the issued and outstanding shares of WestFire (voting and nonvoting)
and 16.8% of the issued and outstanding shares of Guide. The Company’s interest in private and public securities
are accounted for as available for sale and, other than Stonegate Agricom which is accounted for using the equity
method, are marked to market at each balance sheet date.
The Company’s Corporate Segment had no revenues during the past two years. It had 41 employees (including
employees of Stonegate Agricom) as at December 31, 2011.
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