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Sprott Resource Corp. Reports 2008 Second Quarter Financial Results

        TORONTO, Aug. 15 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC")  announced today its financial results for the quarter ended June 30, 2008. The  consolidated financial statements and the related management's discussion and  analysis ("MD&A") can be found on SEDAR at www.sedar.com.      For the second quarter, net earnings were $6.96 million or $0.13 basic  earnings per share ($0.11 fully diluted earnings per share). Net earnings  include $4.99 million in equity earnings of PBS Coals Corporation ("PBS") and  $3.17 million in gains on the sale of investments. Working capital ended the  second quarter at $58.12 million, an increase of $24.98 million from the end  of the previous quarter. The increase in working capital was a result of a  warrant incentive program that commenced during the second quarter and was  completed subsequent to the end of the second quarter. The total proceeds  resulting from the warrant incentive program will be fully reflected in the  third quarter's financial statements.      The second quarter included an additional investment of US$23,960,000 in  PBS. This investment increased SRC's holdings of PBS shares to 44,194,538.  Subsequent to the end of the quarter, SRC sold into escrow 17,050,000 PBS  shares for gross proceeds of approximately $102,300,000. These proceeds have  been placed into escrow and will be released from escrow following the  satisfaction of certain conditions, which are expected to be fulfilled by the  end of August 2008.      Also of note in the second quarter was the acquisition, through a newly  formed Ontario corporation ("Ontario Co"), of the outstanding shares of  Mantaro (BVI) Ltd., the company that indirectly holds the mineral rights  relating to the Mantaro Phosphate Project. Subsequent to the end of the second  quarter, SRC announced that it would be amalgamating Ontario Co with Stonegate  Minerals Ltd. ("Stonegate"), a private Ontario company. Stonegate will be  providing initial working capital for the project. The key principals of  Stonegate, Ian McDonald and Kerry Knoll, will lead the management of the  project.      "The successful completion of the warrant incentive program and the sale  of a portion of our PBS shares leaves us in a very strong financial position,"  said Kevin Bambrough, CEO of Sprott Resource Corp. "With a strong capital  base, we intend to take advantage of the existing market conditions to  continue to acquire properties and investments at attractive valuations."        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 or future market conditions, may constitute forward-looking  statements under applicable securities laws and necessarily involve risk,  including without limitation, risks associated with mineral exploration  projects, risks associated with commodity prices and risks associated with the  release conditions to the escrowed funds on the sale of PBS shares not being  satisfied. 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 event 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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