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Press Release

Sprott Resource Corp. announces approval of Warrant Incentive Program

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, June 24 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")  announces today that it has received all necessary approvals required to  proceed with a warrant incentive program (the "Warrant Incentive Program") for  the early exercise of 37,154,000 warrants that expire September 5, 2009 (the  "Warrants").      "We would like to thank all shareholders and warrantholders who voted for  the program," stated Kevin Bambrough, President and CEO of SRC. "We would  encourage all warrantholders to take advantage of the program and exercise  their warrants early."      A total of 52,031,346 common shares were eligible to be voted on the  record date of May 15, 2008 (the "Record Date"). Total common shares voted  were 34,571,469. Total common shares voted "for" the program were 34,285,134  (99.17% of common shares voted or 65.89% of the outstanding common shares as  at the Record Date) compared to 286,335 common shares voted "against" the  program (0.83% of common shares voted or 0.55% of the outstanding common  shares as at the Record Date).      Insiders (and their associates and their affiliates) held 11,195,806  common shares as at the Record Date. Excluding the votes of insiders (and  their associates and affiliates), 23,089,328 common shares were voted "for"  the program. This represents 56.5% of disinterested common shares as at the  Record Date. Insiders (and their associates and affiliates) held 7,809,450 or  19.71% Warrants as at the Record Date.      Each registered warrantholder will receive formal notice of the Warrant  Incentive Program. Beneficial warrantholders who wish to exercise should  contact their broker with instructions as soon as possible.      Under the Warrant Incentive Program, each warrantholder who exercises a  Warrant prior to 4:30 p.m. on July 7, 2008 (the "Deadline") will receive, in  addition to a common share, one-half of one new common share purchase warrant  (a "New Warrant"). Each whole New Warrant will be exercisable for one common  share at a price of $4.25 until December 31, 2010, subject to SRC's ability to  accelerate the expiration if the closing trading price of SRC's common shares  is equal to or greater than $6.00 for 20 consecutive trading days. Warrants  that are not exercised prior to the Deadline will remain unchanged. New  Warrants will be issued upon exercise of any Warrants prior to the Deadline,  provided that each New Warrant will be subject to a four-month plus one day  hold period from the Deadline date regardless of the date of issue. SRC  intends to apply to TSX to list the New Warrants upon the expiry of such hold  period. The New Warrants are governed pursuant to the terms of a warrant  indenture, which contains standard anti-dilution provisions.        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, including management's assessment of  future plans, may constitute forward-looking statements under applicable  securities laws and necessarily involve risk. SRC's 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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