Press Release

Sprott Resource Corp. announces pricing of PBS Coals Corporation offering

        TORONTO, July 16 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")  announced today that it has received a letter from the syndicate of agents  (the "Agents") for the PBS Coals Corporation ("PBS") private placement  informing SRC that they have priced the PBS private placement at $6.00 per  subscription receipt. The Agents have confirmed and allocated orders for  35,716,000 subscription receipts for a total offering size of $214,296,000.  The Agents have indicated that the offering was substantially oversubscribed  and features a list of well-known international institutional investors.  Assuming that the offering described above and the Talbot Group of Australia  purchase (see press release dated June 27, 2008) both close as planned, SRC  has received confirmation from the Agents that it will have sold, in the  aggregate, approximately 17.05 million shares of PBS leaving it with an  estimated 19.9 percent shareholding (or 27.14 million shares) in PBS.      "We would like to thank the Agents for their efforts in respect of the  offering," stated Kevin Bambrough, President and CEO of SRC. "We would also  like to thank PBS management and the directors PBS for their efforts to date  and for the opportunity to participate as an investor in PBS. We will remain  strong supporters of PBS and look forward to PBS realizing its growth  potential."      The offering is expected to close on July 31, 2008, with proceeds held in  escrow until closing of the Penfold Acquisition Corp. amalgamation, expected  on or before August 28, 2008. The closing of the offering is subject to due  diligence, execution of the agency agreement between PBS, the selling  shareholders and the Agents, and standard material change clauses.        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 associating with the PBS offering and the sale to the Talbot  Group of Australia not closing. 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.