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Sprott Resource Corp. announces Severstal's mailing of take-over bid circular to PBS sharholders

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, Sept. 5 /CNW/ - Sprott Resource Corp. ("SRC") announced today  that it has been informed that a wholly-owned subsidiary of Severstal  Resources, the mining division of OAO Severstal ("Severstal") has mailed its  offer to purchase all the outstanding common shares of PBS Coals Limited, the  company resulting from the business combination of Penfold Capital Acquisition  Corporation ("Penfold") and PBS Coals Corporation ("PBS"), for a price of  Cdn.$8.30 per share (the "Offer").      SRC previously announced that it had signed a lock-up agreement with  Severstal under which it has agreed to tender into the Offer (see press  release dated August 22, 2008). The Offer may not be accepted by security  holders of PBS until the completion of PBS' business combination with Penfold,  which SRC understands is expected to be completed on or about September 24,  2008.        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" under applicable securities laws. Some of the forward-looking  statements can be identified by words such as "expects", "anticipates",  "should", "believes", "plans", and similar expressions. These statements  necessarily involve risk, including 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. Actual results and future events 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 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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