Sprott Resource Corp. announces Severstal extends expiration date for offer to purchase shares of PBS Coals Limited

    TORONTO, Oct. 14 /CNW/ - Sprott Resource Corp. ("SRC") today announced
that the expiration date for the September 5, 2008 offer (the "Offer") by an
affiliate of OAO Severstal ("Severstal") to purchase all of outstanding shares
of PBS Coals Limited (TSX: PBS) has been extended by Severstal to 11:59 p.m.
(Toronto time) on October 20, 2008. The terms of the Offer remain unchanged at
C$8.30 cash per share. SRC owns 27,144,938 shares of PBS, which it has agreed
to tender into the Offer.
    According to a news release issued by Severstal, the Offer has been
extended to allow for the receipt of confirmation from the Committee on
Foreign Investment in the United States under the Exon-Florio Amendment to the
Defense Production Act of 1950, as amended, that no second-stage investigation
will be initiated in respect of the joint application submitted by Severstal
and PBS Coals Corporation.

    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 may be identified by words such as
"expects", "anticipates", "should", "believes", "plans", and similar
expressions. Forward-looking statements, which are based on management's
current expectations and assumptions, involve a number of risks and
uncertainties. Actual results or achievements could differ materially from
those expressed in, or implied by, these forward-looking statements. Factors
that could cause actual results to differ from those expressed in, or implied
by, these forward-looking statements include, without limitation, risks
associated with the Offer, including the possibility that the conditions
relating to the Offer may not be satisfied or that all required regulatory
approvals may not be obtained. No assurance can be given that any events
anticipated by these 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 CEO, Tel: (416)
977-7333, Fax: (416) 977-9555

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Sprott Resource Corp.

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