Sprott 2011 Flow-Through Limited Partnership Completes $90.7 Million IPO

TORONTO, March 10 /CNW/ -- 
TORONTO, March 10 /CNW/ - Sprott 2011 Corporation is pleased to announce
 that Sprott 2011 Flow-Through Limited Partnership (the "Partnership")
 has completed the second and final closing of its initial public
 offering of limited partnership units. The Partnership raised
 $19,325,475 on the sale of 773,019 units at $25.00 per unit for
 aggregate total gross proceeds raised from the offering of $90,672,650.


"We are extremely pleased with the success of this offering, as we
 continue to build out our Flow-Through franchise," said James Fox,
 President of Sprott Asset Management. "We raised approximately $51
 million through our first Flow-Through offering in 2010 and the almost
 80% increase in the size of Sprott 2011 Flow-Through Limited
 Partnership illustrates the traction that we are gaining in this
 market. We are pleased to be able to offer this effective tax reduction
 strategy to our investors and look forward to continuing to grow this
 product line in the future."


Investment Objective of the Partnership


The Partnership's investment objective is to provide for a tax-assisted
 investment in a diversified portfolio of flow-through shares of
 resource issuers with a view to achieving capital appreciation and
 significant tax benefits for limited partners.


Attractive Tax-reduction Benefits


Flow-through partnerships are one of the most effective tax reduction
 strategies that remain available to Canadians. Sprott Asset Management
 LP ("Sprott"), the manager of the Partnership, anticipates that
 investors purchasing Units of the Partnership will be eligible to
 receive a tax deduction in 2011 that is approximately 100% of the
 amount invested in the Partnership, based on certain assumptions set
 forth in the prospectus.


Resource Expertise


The Partnership will be managed by Sprott, an independent asset
 management company that is dedicated to achieving superior returns for
 its clients over the long term. Portfolio managers Allan Jacobs and
 Eric Nuttall will co-manage the Partnership and will be supported by
 Eric Sprott, Charles Oliver and Rick Rule. As at December 31, 2010,
 Sprott had $8.5 billion in assets under management in various mutual
 funds and hedge funds, including approximately $8.2 billion dedicated
 to investments in natural resources. In 2010 alone, Sprott invested, on
 behalf of its funds on a private placement basis, in approximately 244
 resource issues, investing a total of approximately $408 million. The
 Manager also manages the Sprott 2010 Flow-Through Limited Partnership
 which has approximately $61 million in assets as at February 28, 2011.


Agents


The offering was made through a syndicate of agents led by RBC Capital
 Markets and which included, CIBC World Markets Inc., TD Securities
 Inc., BMO Capital Markets, National Bank Financial Inc., Canaccord
 Genuity Corp., Dundee Securities Ltd., HSBC Securities (Canada) Inc.,
 Scotia Capital Inc., GMP Securities L.P., Wellington West Capital
 Markets Inc., Desjardins Securities Inc., Macquarie Private Wealth Inc.
 and Manulife Securities Incorporated.


Certain statements included in this news release constitute
 forward-looking statements, including, but not limited to, those
 identified by the expressions ''expect,'' ''intend,'' "will" and
 similar expressions to the extent that they relate to the Partnership.
 The forward-looking statements are not historical facts but reflect the
 General Partner's and Sprott's current expectations regarding future
 results or events. These forward-looking statements are subject to a
 number of risks and uncertainties that could cause actual results or
 events to differ materially from current expectations. Although the
 General Partner and Sprott believe that the assumptions inherent in the
 forward-looking statements are reasonable, forward-looking statements
 are not guarantees of future performance and, accordingly, readers are
 cautioned not to place undue reliance on such statements due to the
 inherent uncertainty therein. Neither the General Partner nor Sprott
 undertake any obligation to update publicly or otherwise revise any
 forward-looking statement or information whether as a result of new
 information, future events or other such factors which affect this
 information, except as required by law.



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