Press Release

Sprott Resource Corp. Announces Agreement on Mantaro Phosphate Project

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, Nov. 16 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") is  pleased to announce that it has signed an exploration and option agreement  (the "Agreement") with Lara Exploration Ltd. ("Lara" LRA.V) and other members  of the Mantaro Group, under which SRC has the option to acquire a 100%  interest in the Mantaro phosphate project in Peru. The Mantaro Group, of which  Lara is a member, is an unincorporated joint venture that holds the rights to  the Mantaro phosphate project.      "We are very excited about this project and the opportunity to  participate in the expanding market for phosphate-based fertilizers," states  Kevin Bambrough, President and CEO of SRC. "We would like to thank Miles  Thompson of Lara and the other members of the Mantaro Group for agreeing to  work with us on this project. We look forward to brining this project  forward."      Under the terms of the Agreement, SRC has the option to acquire a 100%  interest in the Mantaro phosphate project by funding exploration and technical  studies, making cash payments over four (4) years totaling approximately  US$2,000,000 and issuing shares to the Mantaro Group in a new project company  equal to 20% of the outstanding shares at the time of the Qualifying  Transaction. In addition, the Mantaro Group will receive a 2% royalty on any  production from the Mantaro phosphate project, subject to SRC's option to  purchase the royalty for the equivalent in cash of 2% of the net present value  of the project upon the completion of the full feasibility study. A finder's  fee of CAD$50,000 will be paid by SRC to Integral Wealth Securities Limited.      SRC intends to issue a subsequent press release at a later date in which  it will provide additional information on the Mantaro phosphate project.        About Sprott Resource Corp.        SRC is a Canadian based company. The primary purpose of SRC 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 Ltd. (SCL), a wholly-owned subsidiary of Sprott Asset  Management Inc. Pursuant to a management services agreement between SCL and  SRC, SCL provides day-to-day business management for SRC as well as other  management and administrative services.        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 the mining industry such as future commodity prices,  economic factors, government regulation, environmental risks, capital  expenditures and risks associated with exploration and option agreements.  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.