Press Release

Sprott Resource Corp. announces investment in PBS Coals Corporation by The Talbot Group

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, June 27 /CNW/ - Sprott Resource Corp. ("SRC") is pleased to  announce that The Talbot Group of Australia (the "Talbot Group") has agreed to  make a substantial, strategic investment in PBS Coals Corporation ("PBS"), a  corporation of which SRC owns 44,194,938 common shares (approximately 37%).  PBS, and certain of its major shareholders, including SRC, have agreed to  sell, and the Talbot Group has agreed to purchase, an equity position of  19.9% in PBS at a price of $6.00 per share. SRC has committed to selling up to  17,640,916 common shares of PBS. In addition, the Talbot Group has agreed to  purchase shares representing 19.9% of the securities sold from treasury under  a proposed private placement, which is expected to be completed in the next  30 days. The transaction with the Talbot Group is subject to customary  conditions, including documentation and due diligence.      Commenting on the transaction, Robert Scott, President of PBS stated: "We  are delighted that the Talbot Group has decided to become a strategic investor  in PBS. We thank Kevin Bambrough at SRC in particular for the introduction to  Ken Talbot and Dennis Wood and we look forward to continuing to build PBS with  the addition of their deep expertise in the coal industry."      Commenting on the transaction, Kevin Bambrough, President and CEO of SRC,  stated: "We are also very pleased that the Talbot Group has agreed to invest  in PBS. The coal market is extremely exciting right now. The price of coal  continues to move higher, with Rotterdam thermal coal futures for 2012 trading  at US$193 per tonne, an increase of over US$70 per tonne in the past two  months. This dramatic increase in the forward price of thermal coal points to  excellent long-term pricing for metallurgical coal."      The Talbot Group is a privately owned investment firm, which is the  investment company of Ken Talbot. The Talbot Group is based in Brisbane,  Australia and is a leading investor and manager of coal assets on a global  basis. Ken Talbot was the founding shareholder of MacArthur Coal and served as  the CEO of MacArthur during its rapid growth to become the world's leading  producer of high quality PCI coal. Mr. Talbot recently resigned from the Board  of Directors of MacArthur after negotiating strategic investments by CITIC and  Arcelor Mittal. Mr. Talbot has agreed to serve as a Director of PBS Coals upon  closing of the investment.      Dennis Wood, Managing Director of the Talbot Group has agreed to serve as  a consultant to PBS specifically in the areas of corporate development and  strategic growth initiatives. Messrs. Talbot and Wood bring a combined 50  years plus of coal industry experience to PBS, as well as a global contact  base of strategic relationships with steel manufacturers, coal producers,  transportation and logistics providers, investors as well as the governments  in related countries.      Mr. Wood offered the following insight into the investment: "We have  committed to invest in PBS because we believe that the company is in an ideal  position to grow its production of high quality coking coals for many years to  come. The Eastern US coalfields have long interested us as being one of the  only global metallurgical coal producing regions with both available  infrastructure and an abundance of attractive reserves. PBS, in our opinion,  is in an outstanding position to take advantage of that growth due to its  experienced management team, high quality reserves, low-cost operations and  excellent access to ports. We look forward to participating as both a major  investor and in providing strategic guidance to the company while it executes  a growth plan designed to make it a globally recognized independent coking  coal supplier."        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 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 coalmine production, changes in the price of  coal, delivery issues associated with coal production and regulatory issues  relating to coal production and use. 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.