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Sprott Resource Corp. agrees to a price reduction to complete PBS sale

        TORONTO, Oct. 25 /CNW/ - Sprott Resource Corp. (TSX: SCP) ("SRC")  announced today that SRC, along with other principal shareholders of PBS Coals  Limited ("PBS"), have reached an agreement (the "Supplemental Agreement") with  PBS, PBS Coals Corporation, Mining Holding Company LLC, a holding company in  OAO Severstal's Resource Division and 7027940 Canada Limited (the "Offeror"),  a subsidiary of Severstal Resources, pursuant to which the Offeror has agreed  to take up and pay for all common shares tendered into its September 5, 2008  offer (the "Offer") at a price of C$8.30 per share and waive all conditions to  the Offer. The expiry time of the Offer was 11:59 pm (Eastern) on October 24,  2008. The Offeror has agreed to take up and pay for the shares tendered into  the Offer no later than November 3, 2008, subject to an extension for payment  to November 5, 2008 with regulatory approval.      SRC owns 27,144,938 shares of PBS. If the Offeror takes up and pays for  the shares under the Offer, after giving effect to the C$84,478,886 price  reduction under the Supplemental Agreement, as part of the total price  reduction of C$381,960,000 by principal shareholders, SRC will receive net  proceeds of C$140,824,099 on the sale of its PBS shares.      "Under the circumstances, we are pleased to be able to resolve the  outstanding issues between the parties and reach this agreement", said Kevin  Bambrough, President and CEO of SRC. "We would like to thank all the other  principal shareholders as well as management of PBS for their cooperation  throughout the process."        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 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 the  ability of the parties to the Supplemental Agreement to satisfy their  obligations in respect of the Offer. 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.        

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