Press Release

Sprott Resource Corp. Announces Additional US$24 Million Investment in PBS Coals Corporation

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, May 7 /CNW/ -(TSX: SCP) - Sprott Resource Corp. ("SRC") today  announced that it has invested an additional US$24,000,000 in PBS Coals  Corporation ("PBS Coals") as part of an aggregate funding of approximately  US$64,500,000. The PBS Coals shareholders' agreement provides that SRC, and  each other shareholder, has a pro-rata right to take up any further share  offerings of PBS Coals. SRC has been informed that substantially all of the  other shareholders have also elected to take up their pro-rata interests.      "We believe the price of metallurgical coal will stay strong for some  time, due to a structural deficit in the market," said Kevin Bambrough,  President and CEO of SRC. "The expansion projects at PBS, including two new  mines, an additional processing facility, the increasing of capacity at the  existing processing facility and the acquisition of additional coal properties  in the immediate area of the plants are on schedule and expected to allow the  company to produce over 5 MM tons of primarily high quality metallurgical coal  by the year 2010. PBS is an experienced low cost producer that is well  positioned to deliver strong and steadily increasing operating and financial  results over the next few years."      PBS Coals will use the proceeds to subscribe for additional shares of  Mincorp Acquisition Corp. ("Mincorp"), which will use the additional funds to  purchase, for cancellation, all outstanding warrants as well as 30% of Mincorp  stock held by management. Upon the closing of the transactions SRC will  continue to own approximately 37% of PBS Coals and PBS Coals will own over 85%  of the common stock of Mincorp, with management and employees retaining the  balance. SRC's effective diluted interest in Mincorp will increase from  approximately 22.4% to 31.6%.      Mincorp, through its wholly owned subsidiaries PBS Coals, Inc. and  RoxCoal, Inc., currently produces over 3 MM tons per annum of primarily high  quality, low volatility metallurgical coal in Somerset County, Pennsylvania.  Mincorp and its subsidiaries and predecessor companies have been operating  open-pit and underground coal mines for more than 45 years, and have long  standing relationships with many of the most significant global consumers of  metallurgical coal.        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 regarding SRC and its investment in PBS Coals,  including management's assessment of future plans, may constitute  forward-looking statements under applicable securities laws and necessarily  involve risk, including without limitation, risk associated with future  commodity prices, foreign exchange rate fluctuation, government regulation  relating to the production of coal, environmental risks, changes in laws,  capital expenditure cost increases, increases in mining and energy costs and  operational issues at mine sites. SRC's and PBS Coals' 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.          

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