Sprott Resource Corp. Files September 30, 2007 Quarterly Report


    TORONTO, Nov. 14 /CNW/ - (TSX: SCP) - Sprott Resource Corp. (the
"Company" or "SRC") reports that it has released its unaudited consolidated
financial statements for the third quarter ended September 30, 2007 and that
these consolidated financial statements and the related management's
discussion and analysis of financial position and results of operations
("MD&A") are available for viewing on SEDAR at www.sedar.com and at the
Company's website at www.sprottresource.com.
    This past quarter included a series of significant events. On September
5, 2007, the Company entered into a management services agreement (the "MSA")
with Sprott Consulting Ltd. ("SCL"), a wholly-owned subsidiary of Sprott Asset
Management Inc. Pursuant to the terms of the MSA, SCL was appointed by the
Company to manage, or engage others to manage, the undertaking and affairs of
the Company. In consideration for management services to be provided by SCL,
the Company will pay an annual services fee equal to 2% of the net asset value
of the Company (determined in accordance with the MSA), calculated and paid
quarterly. In addition, the Company will pay an annual incentive fee equal to
20% of the pre-tax profits of the Company for such year, net of a hurdle rate
of return based upon the Canadian 30-Year Generic Bond Index. A copy of the
MSA can be obtained by visiting the Company's website or SEDAR.
    As part of the MSA, Eric Sprott, John Embry and Kevin Bambrough were
appointed directors of the Company to fill the vacancies following the
resignations of Ralph Fitch, Lawrence Dick and Tina Woodside. In addition, the
then existing officers of the Company (other than William Filtness, Chief
Financial Officer) resigned and Eric Sprott was appointed Chairman and Kevin
Bambrough was appointed President and Chief Executive Officer.
    Also on September 5, 2007, the Company closed a $60 million private
placement, which comprised of the issuance of 40 million units at $1.50 per
unit. Each unit was comprised of one common share and one common share
purchase warrant, with each warrant being exercisable for two years at $2.50.
    High Desert Gold Corporation ("HDG"), formerly a wholly-owned subsidiary
of the Company, completed its initial public offering on October 17, 2007 (the
"HDG IPO"). As a result of the HDG IPO, the Company's interest in HDG, through
its holding of 6 million common shares, has been diluted to approximately 17%.
This reduced interest has prevented the Company from continuing to use HDG's
assets to meet its TSX listing requirements. As a result, TSX notified the
Company that it would be reviewing the Company's listing under its remedial
review process. The Company has 120 days from the date of the HDG IPO to
comply with its TSX listing requirements. The Company is currently in advanced
negotiations on a number of properties with a view to acquiring an interest in
a qualifying property to enable the Company to meet the TSX listing
    The Company is in a strong financial position with working capital of
$66 million as at September 30, 2007. In addition, the Company holds a
portfolio of investments valued at $8.9 million as at September 30, 2007. The
Company's new management is continuing to seek out investments in the natural
resource sector, in which to deploy its working capital.

    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, including without limitation,
risks associated with an inability to acquire an interest in a property that
is satisfactory to TSX. 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.

    %SEDAR: 00003905E

For further information:

For further information: William Filtness, Chief Financial Officer, Tel:
(604) 684-0693, Fax: (604) 684-0642

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Sprott Resource Corp.

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