Press Release

Sprott Resource Corp. announces completion sale of shares of PBS Coals Limited

        TORONTO, Sept. 24 /CNW/ - Sprott Resource Corp. ("SRC") announced today  that it has completed its previously announced sale of 17,050,000 common  shares of PBS Coals Limited to holders of subscription receipts of PBS Coals  Corporation and an affiliate, which were issued on July 31, 2008. SRC has  received net proceeds after commissions of $97,507,445 from the completion of  this sale. The proceeds of this previously announced sale had been held in  escrow pending the completion of the business combination between PBS Coals  Limited and Penfold Capital Acquisition Corporation, which became effective  today (see press release dated July 31, 2008).      SRC continues to hold 27,144,938 (19.9%) of the common shares of PBS  Coals Limited. The common shares of PBS Coals Limited are listed for trading  on the Toronto Stock Exchange under the symbol "PBS".      As previously announced on August 22, 2008, SRC has signed an irrevocable  lock-up agreement to tender all of its remaining common shares of PBS Coals  Limited into the offer by a subsidiary of Severstal Resources to purchase all  of the common shares of PBS Coals Limited (the "Offer") at a price of $8.30.  The Offer, which is subject to certain conditions, is open until October 10,  2008, unless withdrawn or extended in accordance with its terms.        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 may 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 satisfied or that all required regulatory approvals may not 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.