Press Release

Sprott Resource Corp. announces that Severstal has clarified the expiration date for its PBS offer

        TORONTO, Oct. 22 /CNW/ - Sprott Resource Corp. ("SRC") today announced  that the expiration date for the September 5th, 2008 offer (the "Offer") by an  affiliate of OAO Severstal ("Severstal") to purchase all outstanding shares of  PBS Coals Limited ("PBS") has been extended by Severstal to 11:59 p.m.  (Toronto time) on October 24, 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  tendered into the Offer.      On October 10, 2008, Severstal announced the extension of the expiration  date for the Offer until October 20, 2008. However, due to the Canadian  Thanksgiving long weekend, the mailing of the Notice of Extension to  shareholders of PBS did not occur until October 14, 2008. In accordance with  applicable Canadian Securities laws, any extension of an Offer must remain  open for a minimum period of 10 days from the date it is mailed to  shareholders. Accordingly, the expiry time of the Offer is 11:59 p.m. (Toronto  time) on October 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 satisfied or waived, that all required regulatory approvals may not  obtained or that the Offer may not be completed for any other reason. 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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