Sprott Resource Corp. announces approval of Warrant Incentive Program



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    TORONTO, June 24 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")
announces today that it has received all necessary approvals required to
proceed with a warrant incentive program (the "Warrant Incentive Program") for
the early exercise of 37,154,000 warrants that expire September 5, 2009 (the
"Warrants").
    "We would like to thank all shareholders and warrantholders who voted for
the program," stated Kevin Bambrough, President and CEO of SRC. "We would
encourage all warrantholders to take advantage of the program and exercise
their warrants early."
    A total of 52,031,346 common shares were eligible to be voted on the
record date of May 15, 2008 (the "Record Date"). Total common shares voted
were 34,571,469. Total common shares voted "for" the program were 34,285,134
(99.17% of common shares voted or 65.89% of the outstanding common shares as
at the Record Date) compared to 286,335 common shares voted "against" the
program (0.83% of common shares voted or 0.55% of the outstanding common
shares as at the Record Date).
    Insiders (and their associates and their affiliates) held 11,195,806
common shares as at the Record Date. Excluding the votes of insiders (and
their associates and affiliates), 23,089,328 common shares were voted "for"
the program. This represents 56.5% of disinterested common shares as at the
Record Date. Insiders (and their associates and affiliates) held 7,809,450 or
19.71% Warrants as at the Record Date.
    Each registered warrantholder will receive formal notice of the Warrant
Incentive Program. Beneficial warrantholders who wish to exercise should
contact their broker with instructions as soon as possible.
    Under the Warrant Incentive Program, each warrantholder who exercises a
Warrant prior to 4:30 p.m. on July 7, 2008 (the "Deadline") will receive, in
addition to a common share, one-half of one new common share purchase warrant
(a "New Warrant"). Each whole New Warrant will be exercisable for one common
share at a price of $4.25 until December 31, 2010, subject to SRC's ability to
accelerate the expiration if the closing trading price of SRC's common shares
is equal to or greater than $6.00 for 20 consecutive trading days. Warrants
that are not exercised prior to the Deadline will remain unchanged. New
Warrants will be issued upon exercise of any Warrants prior to the Deadline,
provided that each New Warrant will be subject to a four-month plus one day
hold period from the Deadline date regardless of the date of issue. SRC
intends to apply to TSX to list the New Warrants upon the expiry of such hold
period. The New Warrants are governed pursuant to the terms of a warrant
indenture, which contains standard anti-dilution provisions.

    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 regarding SRC, including management's assessment of
future plans, may constitute forward-looking statements under applicable
securities laws and necessarily involve risk. SRC's actual results or
achievements 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, which are based on management's current
expectations, 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 CEO, Tel: (416)
977-7333, Fax: (416) 977-9555

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Sprott Resource Corp.

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