Sprott Resource Corp. announces Severstal's mailing of take-over bid circular to PBS sharholders


    TORONTO, Sept. 5 /CNW/ - Sprott Resource Corp. ("SRC") announced today
that it has been informed that a wholly-owned subsidiary of Severstal
Resources, the mining division of OAO Severstal ("Severstal") has mailed its
offer to purchase all the outstanding common shares of PBS Coals Limited, the
company resulting from the business combination of Penfold Capital Acquisition
Corporation ("Penfold") and PBS Coals Corporation ("PBS"), for a price of
Cdn.$8.30 per share (the "Offer").
    SRC previously announced that it had signed a lock-up agreement with
Severstal under which it has agreed to tender into the Offer (see press
release dated August 22, 2008). The Offer may not be accepted by security
holders of PBS until the completion of PBS' business combination with Penfold,
which SRC understands is expected to be completed on or about September 24,

    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 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. 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:

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Sprott Resource Corp.

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