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Press Release

Sprott Resource Corp. to form strategic alliance with Lara Exploration Ltd.

5/5/2008

        /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN      THE UNITED STATES/        TORONTO, May 5 /CNW/ - (TSX:SCP) - Sprott Resource Corp. ("SRC")  announced today that it has signed a letter of intent ("LOI") with Lara  Exploration Ltd. ("Lara") to form a strategic alliance targeting phosphates,  potash and other fertilizer feedstock minerals outside of Canada. The  strategic alliance, which will be owned equally by SRC and Lara, aims to build  on the relationship that Lara and SRC developed with the Mantaro Phoshpate  Project.      "We are excited to be working again with Lara and Miles Thompson, a  successful prospect generator," said Kevin Bambrough, President and CEO of  SRC. "Miles and the Lara team bring considerable expertise and experience in a  number of key regions of the world. We hope that with capital support, the  Lara team will be able to generate exciting opportunities."      Under the terms of the LOI, SRC will initially seed the strategic  alliance with up to $3,000,000, of which $500,000 will be committed in the  first year. Lara will act as operator to seek acquisitions and undertake basic  exploration.        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, may constitute forward-looking statements under applicable  securities laws and necessarily involve risk, including without limitation,  risks associated with mineral exploration projects. 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 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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