/R E P E A T -- Sprott Resource Corp. announces investment in PBS Coals Corporation by The Talbot Group/



    TORONTO, June 27 /CNW/ - Sprott Resource Corp. ("SRC") is pleased to
announce that The Talbot Group of Australia (the "Talbot Group") has agreed to
make a substantial, strategic investment in PBS Coals Corporation ("PBS"), a
corporation of which SRC owns 44,194,938 common shares (approximately 37%).
PBS, and certain of its major shareholders, including SRC, have agreed to
sell, and the Talbot Group has agreed to purchase, an equity position of
19.9% in PBS at a price of $6.00 per share. SRC has committed to selling up to
17,640,916 common shares of PBS. In addition, the Talbot Group has agreed to
purchase shares representing 19.9% of the securities sold from treasury under
a proposed private placement, which is expected to be completed in the next
30 days. The transaction with the Talbot Group is subject to customary
conditions, including documentation and due diligence.
    Commenting on the transaction, Robert Scott, President of PBS stated: "We
are delighted that the Talbot Group has decided to become a strategic investor
in PBS. We thank Kevin Bambrough at SRC in particular for the introduction to
Ken Talbot and Dennis Wood and we look forward to continuing to build PBS with
the addition of their deep expertise in the coal industry."
    Commenting on the transaction, Kevin Bambrough, President and CEO of SRC,
stated: "We are also very pleased that the Talbot Group has agreed to invest
in PBS. The coal market is extremely exciting right now. The price of coal
continues to move higher, with Rotterdam thermal coal futures for 2012 trading
at US$193 per tonne, an increase of over US$70 per tonne in the past two
months. This dramatic increase in the forward price of thermal coal points to
excellent long-term pricing for metallurgical coal."
    The Talbot Group is a privately owned investment firm, which is the
investment company of Ken Talbot. The Talbot Group is based in Brisbane,
Australia and is a leading investor and manager of coal assets on a global
basis. Ken Talbot was the founding shareholder of MacArthur Coal and served as
the CEO of MacArthur during its rapid growth to become the world's leading
producer of high quality PCI coal. Mr. Talbot recently resigned from the Board
of Directors of MacArthur after negotiating strategic investments by CITIC and
Arcelor Mittal. Mr. Talbot has agreed to serve as a Director of PBS Coals upon
closing of the investment.
    Dennis Wood, Managing Director of the Talbot Group has agreed to serve as
a consultant to PBS specifically in the areas of corporate development and
strategic growth initiatives. Messrs. Talbot and Wood bring a combined 50
years plus of coal industry experience to PBS, as well as a global contact
base of strategic relationships with steel manufacturers, coal producers,
transportation and logistics providers, investors as well as the governments
in related countries.
    Mr. Wood offered the following insight into the investment: "We have
committed to invest in PBS because we believe that the company is in an ideal
position to grow its production of high quality coking coals for many years to
come. The Eastern US coalfields have long interested us as being one of the
only global metallurgical coal producing regions with both available
infrastructure and an abundance of attractive reserves. PBS, in our opinion,
is in an outstanding position to take advantage of that growth due to its
experienced management team, high quality reserves, low-cost operations and
excellent access to ports. We look forward to participating as both a major
investor and in providing strategic guidance to the company while it executes
a growth plan designed to make it a globally recognized independent coking
coal supplier."

    About Sprott Resource Corp.

    SRC is a Canadian based company, the primary purpose of which is to
invest, directly and indirectly, in natural resources. Through acquisitions,
joint ventures and other investments, SRC seeks to provide its shareholders
with exposure to the natural resource sector for the purposes of capital
appreciation and real wealth preservation. SRC is well positioned to draw upon
the considerable experience and expertise of both its Board of Directors and
Sprott Consulting Limited Partnership (SCLP), of which Sprott Asset Management
Inc. is the sole limited partner. Pursuant to a management services agreement
between SCLP and SRC, SCLP provides day-to-day business management for SRC as
well as other management and administrative services.

    Forward Looking Statements

    Certain statements contained herein may constitute "forward-looking
statements" or "forward-looking information" under applicable securities laws.
Some of the forward-looking statements can be identified by words such as
"expects", "anticipates", "should", "believes", "plans", and similar
expressions. These statements necessarily involve risk, including without
limitation, risks associated coalmine production, changes in the price of
coal, delivery issues associated with coal production and regulatory issues
relating to coal production and use. Actual results and future events could
differ materially from those expressed in, or implied by, the forward-looking
statements. No assurance can be given that any events anticipated by the
forward-looking statements will occur. These forward-looking statements are
made as at the date of this news release. SRC does not undertake any
obligation to publicly update or revise any of these forward-looking
statements, except as required by applicable securities laws.





For further information:

For further information: Kevin Bambrough, President and Chief Executive
Officer, Tel: (416) 977-7333, Fax: (416) 977-9555, E-mail:
info@sprottresource.com

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