Sprott Resource Corp. agrees to a price reduction to complete PBS sale



    TORONTO, Oct. 25 /CNW/ - Sprott Resource Corp. (TSX: SCP) ("SRC")
announced today that SRC, along with other principal shareholders of PBS Coals
Limited ("PBS"), have reached an agreement (the "Supplemental Agreement") with
PBS, PBS Coals Corporation, Mining Holding Company LLC, a holding company in
OAO Severstal's Resource Division and 7027940 Canada Limited (the "Offeror"),
a subsidiary of Severstal Resources, pursuant to which the Offeror has agreed
to take up and pay for all common shares tendered into its September 5, 2008
offer (the "Offer") at a price of C$8.30 per share and waive all conditions to
the Offer. The expiry time of the Offer was 11:59 pm (Eastern) on October 24,
2008. The Offeror has agreed to take up and pay for the shares tendered into
the Offer no later than November 3, 2008, subject to an extension for payment
to November 5, 2008 with regulatory approval.
    SRC owns 27,144,938 shares of PBS. If the Offeror takes up and pays for
the shares under the Offer, after giving effect to the C$84,478,886 price
reduction under the Supplemental Agreement, as part of the total price
reduction of C$381,960,000 by principal shareholders, SRC will receive net
proceeds of C$140,824,099 on the sale of its PBS shares.
    "Under the circumstances, we are pleased to be able to resolve the
outstanding issues between the parties and reach this agreement", said Kevin
Bambrough, President and CEO of SRC. "We would like to thank all the other
principal shareholders as well as management of PBS for their cooperation
throughout the process."

    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" 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 the
ability of the parties to the Supplemental Agreement to satisfy their
obligations in respect of the Offer. 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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Sprott Resource Corp.

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