Press Release

Sprott Resource Corp. announces Severstal extends expiration date for offer to purchase shares of PBS Coals Limited

        TORONTO, Oct. 14 /CNW/ - Sprott Resource Corp. ("SRC") today announced  that the expiration date for the September 5, 2008 offer (the "Offer") by an  affiliate of OAO Severstal ("Severstal") to purchase all of outstanding shares  of PBS Coals Limited (TSX: PBS) has been extended by Severstal to 11:59 p.m.  (Toronto time) on October 20, 2008. The terms of the Offer remain unchanged at  C$8.30 cash per share. SRC owns 27,144,938 shares of PBS, which it has agreed  to tender into the Offer.      According to a news release issued by Severstal, the Offer has been  extended to allow for the receipt of confirmation from the Committee on  Foreign Investment in the United States under the Exon-Florio Amendment to the  Defense Production Act of 1950, as amended, that no second-stage investigation  will be initiated in respect of the joint application submitted by Severstal  and PBS Coals Corporation.        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 the Offer, including the possibility that the conditions  relating to the Offer may not be satisfied or that all required regulatory  approvals may not be obtained. 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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