Sprott Resource Corp. Announces Production Goals for PBS Coals



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

    TORONTO, March 3 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today
announced that it has received a production forecast from PBS Coals, Inc.
("PBS Coals") for the years 2008 - 2010. With the injection of new capital
from SRC and other investors (see Dec. 5, 2008 press release), PBS Coals has
initiated a capital spending program which is expected to double its
metallurgical coal production. PBS Coals expects to solidify contracts with
its key customers, while also offering significant quantities for sale in the
spot market.
    "We are pleased to see that the expansion of production is on track and
on budget, and that PBS Coals appears to be on its way to ramping up
production to become an annual producer of more than 4 million tons of low
volatile metallurgical coal by 2010," said Kevin Bambrough, President and CEO
of SRC. "PBS Coals believes it is amongst the lower cost producers of low
volatile metallurgical coal in the U.S. With serious global supply issues
persisting in the metallurgical coal market, we believe PBS Coals, a U.S.
producer with low operating costs, to be uniquely positioned to achieve
sustainable, high profit margins for years to come."

    
    Highlights of the capital program include:

    -   Throughout 2008, PBS Coals plans to develop two new deep mines,
        Kimberly Run and Horning, and add a second continuous mining unit at
        its Roytown mine, as well as to ramp up production at its new Trent
        surface mine.

    -   PBS Coals will upgrade the Shade Creek Coal Prep Plant in order to
        increase overall output and further improve product quality.

    -   PBS Coals will also rebuild the existing Cambria Fuel Coal Prep
        Plant, which will allow PBS Coals to significantly increase its
        overall production capacity. Approvals have been received from the
        relevant authorities, which allows for the construction of the new
        plant complex. PBS Coals will then have a processing plant on each of
        the CSX and the Norfolk Southern rail lines, both of which offer
        access to the export piers, providing flexibility in serving its
        customers.

    -   As part of the expansion program PBS Coals will be adding four new
        continuous miners and related ancillary mining equipment to the deep
        operations and on the surface mines refurbishing PBS Coals'
        7820 Marion walking dragline and upgrading the shovel and truck
        capacity.
    

    In addition, Sithe Global has submitted an Air Quality Permit application
for a 350-500 MW coal-fired power plant to be constructed adjacent to PBS
Coals' Shade Creek Plant. PBS Coals intends to negotiate coal supply contracts
and review the potential for equity participation in the project as it
proceeds towards approval. The construction of this project would bring
important environmental and financial benefits to PBS Coals and the
surrounding communities.

    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 and its indirect investment in PBS
Coals, including management's assessment of future plans, may constitute
forward-looking statements under applicable securities laws. Forward-looking
statements may include words such as "plans", "intends", "anticipates",
"should", "estimates", "expects", "believes", "indicates", "suggests" and
similar expressions. Forward-looking statements necessarily involve risk,
including without limitation, risk associated with future commodity prices,
foreign exchange rate fluctuation, government regulation relating to the
production of coal, environmental risks, changes in laws, capital expenditure
cost increases, increases in mining and energy costs and operational issues at
mine sites. SRC's and PBS Coals' 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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