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Sprott Resource Corp. announces $27.17 million investment in Waseca Energy Inc.

        TORONTO, Oct. 1 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC") today  announced that it has purchased 45,289,000 common shares of Waseca Energy Inc.  ("Waseca") for $27,173,400 ($0.60 per share), as part of a larger private  placement of 52,199,589 common shares completed by Waseca (the "Private  Placement"). SRC holds 79.72% of the outstanding common shares of Waseca.      "We are pleased to partner with an experienced oil and gas exploration  and development team that has had historical success at growing production,"  said Kevin Bambrough, SRC President & CEO. "We believe that with financing in  place, especially at a time when financing is not available for most, the  Waseca team is well positioned to explore and develop its existing land base  and add to it through additional acquisitions. We also have the ability to  provide additional capital to Waseca if larger, attractive acquisition  opportunities arise."      Waseca President and Chief Operating Officer, Michael Watson, commented,  "We are extremely pleased to have SRC as our major shareholder, a firm whose  expertise as an investor in the resource sector is well recognized. We look  forward to the challenge of delivering value to all of our shareholders."        About Waseca Energy Inc.        Waseca Energy Inc. is a private oil and gas company whose primary focus  is heavy oil production from the Lloydminster area on the border of central  Alberta and Saskatchewan. Waseca's principals average 33 years of technical  and managerial experience. Prior to Waseca, the principals generated  significant production growth in the Lloydminster area while employed at a  major independent oil and gas company. Waseca currently owns four prospective  petroleum and natural gas leases in the Lloydminster area. Funds from the  Private Placement will be used to finance Waseca's exploration and development  program as well as potential acquisitions.        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 may be identified by words such as  "expects", "anticipates", "should", "believes", "plans", and similar  expressions. Forward-looking statements, which are based on management's  current expectations and assumptions, involve a number of risks and  uncertainties. Actual results or achievements could differ materially from  those expressed in, or implied by, these forward-looking statements. Factors  that could cause actual results to differ from those expressed in, or implied  by, these forward-looking statements include, without limitation, risks  associated with commodity price fluctuations, regulatory risks, environmental  risks, development risks and costs and other risks associated with oil and gas  exploration and development. No assurance can be given that any events  anticipated by these 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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