Sprott Resource Holdings Press Releases


Press Release

Sprott Resource Corp. Announces Production Goals for PBS Coals


        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, March 3 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC") today  announced that it has received a production forecast from PBS Coals, Inc.  ("PBS Coals") for the years 2008 - 2010. With the injection of new capital  from SRC and other investors (see Dec. 5, 2008 press release), PBS Coals has  initiated a capital spending program which is expected to double its  metallurgical coal production. PBS Coals expects to solidify contracts with  its key customers, while also offering significant quantities for sale in the  spot market.      "We are pleased to see that the expansion of production is on track and  on budget, and that PBS Coals appears to be on its way to ramping up  production to become an annual producer of more than 4 million tons of low  volatile metallurgical coal by 2010," said Kevin Bambrough, President and CEO  of SRC. "PBS Coals believes it is amongst the lower cost producers of low  volatile metallurgical coal in the U.S. With serious global supply issues  persisting in the metallurgical coal market, we believe PBS Coals, a U.S.  producer with low operating costs, to be uniquely positioned to achieve  sustainable, high profit margins for years to come."Highlights of the capital program include:        -   Throughout 2008, PBS Coals plans to develop two new deep mines,          Kimberly Run and Horning, and add a second continuous mining unit at          its Roytown mine, as well as to ramp up production at its new Trent          surface mine.        -   PBS Coals will upgrade the Shade Creek Coal Prep Plant in order to          increase overall output and further improve product quality.        -   PBS Coals will also rebuild the existing Cambria Fuel Coal Prep          Plant, which will allow PBS Coals to significantly increase its          overall production capacity. Approvals have been received from the          relevant authorities, which allows for the construction of the new          plant complex. PBS Coals will then have a processing plant on each of          the CSX and the Norfolk Southern rail lines, both of which offer          access to the export piers, providing flexibility in serving its          customers.        -   As part of the expansion program PBS Coals will be adding four new          continuous miners and related ancillary mining equipment to the deep          operations and on the surface mines refurbishing PBS Coals'          7820 Marion walking dragline and upgrading the shovel and truck          capacity.In addition, Sithe Global has submitted an Air Quality Permit application  for a 350-500 MW coal-fired power plant to be constructed adjacent to PBS  Coals' Shade Creek Plant. PBS Coals intends to negotiate coal supply contracts  and review the potential for equity participation in the project as it  proceeds towards approval. The construction of this project would bring  important environmental and financial benefits to PBS Coals and the  surrounding communities.        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 indirect investment in PBS  Coals, including management's assessment of future plans, may constitute  forward-looking statements under applicable securities laws. Forward-looking  statements may include words such as "plans", "intends", "anticipates",  "should", "estimates", "expects", "believes", "indicates", "suggests" and  similar expressions. Forward-looking statements 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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