Sprott Asset Management Inc.

Sprott Asset Management Inc.
Sprott Small Cap Equity Fund

August 13, 2007 11:33 ET

Sprott Asset Management Inc. Announces Launch of Sprott Small Cap Equity Fund on August 23, 2007/Allan Jacobs, Director of Small Cap Investments to Host Conference Call Tomorrow

TORONTO, ONTARIO--(Marketwire - Aug. 13, 2007) - Eric Sprott, Chief Executive Officer of Sprott Asset Management Inc. (SAM) is pleased to announce the launch of the SPROTT SMALL CAP EQUITY FUND (Fund), which will occur on Thursday, August 23rd, 2007. The Sprott Small Cap Equity Fund will launch at $10 per unit and with a minimum initial investment requirement of $5,000. It is eligible for registered tax plans.

The objective of the Sprott Small Cap Equity Fund is to achieve long-term capital growth by investing primarily in small capitalization equity and equity-related securities listed in Canada, with some exposure to global small capitalization equities.

The Sprott Small Cap Equity Fund will differ from other Sprott Mutual Funds in its investment strategy and style. To achieve the Fund's investment objective, the new Fund will use a bottom up approach to investing and will employ an investment style combining value and growth. The Portfolio Adviser will select a broadly diversified portfolio of securities that it believes offer a good balance between reasonable valuations and attractive growth prospects relative to their peers. The Fund will focus on seeking undervalued companies with strong management teams and financial strength. For further details regarding the strategies employed by this Fund, please visit our website at www.sprott.com where additional information is available, including the Simplified Prospectus for the Fund.

Conference Call

Eric Sprott, CEO and Allan Jacobs, Director of Small Cap Investments, will host an introductory conference call on Tuesday August 14th at 4 pm EST to present the new Sprott Small Cap Equity Fund to the investment community. The following link may be used to register for the call http://events.startcast.com/events/59/B0008. Replays will be available within 24 hours of the call using that same link or by visiting www.sprott.com.

As previously announced, Allan Jacobs and Peter Imhof, most recently at Sceptre Investment Counsel Ltd., recently joined Sprott Asset Management Inc. effective August 1, 2007. Prior to joining SAM, Allan Jacobs was head of Canadian Small Cap equities at Sceptre Investment Counsel, a field he has specialized in for the past eighteen years. He was also the Portfolio Manager of the Sceptre Equity Growth Fund as well as Portfolio Manager of the Sceptre Canadian Equity Small Cap Pooled Fund and the Canadian small cap component of all other institutional portfolios. He was an integral part of the Canadian Equity team at Sceptre since 1993 and was appointed a Managing Director of Sceptre in 1996.

The experience he brought to Sceptre in 1993 included his Chartered Accountant designation, management of the largest equity fund in South Africa (a $5 billion fund for Old Mutual) and his four years at Canada Life Investment Management Limited as the portfolio manager of Small Cap Canadian equities.

Peter Imhof joined SAM in August 2007 as an Investment Strategist and member of the small cap team. Together with Allan Jacobs, Peter's focus will be the new Sprott Small Cap Fund. Prior to joining SAM, Peter worked at Sceptre Investment Counsel as a member of the Canadian Equity Small Cap Team and was appointed a Managing Director in December 2006. Peter began his investment career at Sceptre in March 1998. From 1998 to 2000 he was involved in quantitative analysis and portfolio construction in Canadian Equities.

Allan and Peter represent proven excellence in their field. They are experienced and highly regarded investment professionals with an excellent track record. The employees at Sprott Asset Management Inc. are delighted that they have joined the Firm's investment management team.

Sprott Asset Management Inc. (www.sprott.com) is a Toronto based private company with over $5 billion in assets under management primarily for institutions, endowments and high net worth individuals. Sprott Asset Management Inc. is the investment manager of the Sprott Mutual Funds and Sprott Hedge Funds. Sprott Asset Management is currently providing sub-advisory services to Sceptre in respect of the Sceptre Small Cap Opportunities Fund.

Contact Information