Sprott Resource Corp. announces pricing of PBS Coals Corporation offering



    TORONTO, July 16 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")
announced today that it has received a letter from the syndicate of agents
(the "Agents") for the PBS Coals Corporation ("PBS") private placement
informing SRC that they have priced the PBS private placement at $6.00 per
subscription receipt. The Agents have confirmed and allocated orders for
35,716,000 subscription receipts for a total offering size of $214,296,000.
The Agents have indicated that the offering was substantially oversubscribed
and features a list of well-known international institutional investors.
Assuming that the offering described above and the Talbot Group of Australia
purchase (see press release dated June 27, 2008) both close as planned, SRC
has received confirmation from the Agents that it will have sold, in the
aggregate, approximately 17.05 million shares of PBS leaving it with an
estimated 19.9 percent shareholding (or 27.14 million shares) in PBS.
    "We would like to thank the Agents for their efforts in respect of the
offering," stated Kevin Bambrough, President and CEO of SRC. "We would also
like to thank PBS management and the directors PBS for their efforts to date
and for the opportunity to participate as an investor in PBS. We will remain
strong supporters of PBS and look forward to PBS realizing its growth
potential."
    The offering is expected to close on July 31, 2008, with proceeds held in
escrow until closing of the Penfold Acquisition Corp. amalgamation, expected
on or before August 28, 2008. The closing of the offering is subject to due
diligence, execution of the agency agreement between PBS, the selling
shareholders and the Agents, and standard material change clauses.

    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 associating with the PBS offering and the sale to the Talbot
Group of Australia not closing. 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 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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