Sprott Power Corp.

February 08, 2011 16:33 ET

Sprott Power Corp. Purchase of Wind Operating and Development Wind Energy Assets

TORONTO, ONTARIO--(Marketwire - Feb. 8, 2011) - Sprott Power Corp. (TSX:SPZ) announces that it has completed the previously announced purchase of 100% of the shares of Sky Generation Inc. ("Sky Gen") and transferred the ownership of Sky Gen to a wholly-owned subsidiary of Sprott Power Corp. Sky Gen operates three wind energy projects in Ontario comprised of 13 turbines and an installed capacity of 21.6 Megawatts (MW). The projects operate under long term power purchase agreements with the Ontario Power Authority and Bullfrog Power Inc. Further details on Sky Gen were contained in the Joint Information Circular dated December 14, 2010.

In addition, Sprott Power Corp. has executed an asset purchase agreement to acquire substantially all of the assets of the Amherst Wind Power LP, including the 30 MW power purchase agreement with Nova Scotia Power Inc.

Sprott Power Corp. expects to close the Amherst acquisition within 60 days, subject to satisfaction of all remaining conditions to closing, including receipt of required consents and approvals. Sprott Power expects to complete the construction of the wind farm within 12 months of closing the acquisition.

About Sprott Power Corp.

Sprott Power is a publicly-traded Canadian-based company dedicated to the development and financing of renewable energy projects. Through acquisitions, partnerships and joint ventures, Sprott Power seeks to provide its shareholders with exposure to the power generation sector. Sprott Power is managed by Sprott Power Consulting LP, of which Sprott Consulting LP, a business unit of Sprott Inc., is the sole limited partner.

Forward-Looking Information

Certain information contained in this press release may constitute "forward-looking information" which reflect the current expectations of Sprott Power. This information reflects Sprott Power's current beliefs with respect to future events and are based on information currently available to management. Forward-looking information in this press release includes, but is not limited to, information with respect to the closing of the acquisition of the assets of Amherst Wind Power LP, the timing of such closing and the construction of the wind farm. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions, that could affect closing, the timing of closing and the construction of the wind farm. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking information including, without limitation, receiving the required consents for closing, other conditions to closing are not satisfied, the timing and receipt of all applicable regulatory approvals, having access to the necessary capital to obtain project and other financing, labour restrictions and the risks listed under the heading "Risk Factors" in the information circular of Sprott Power dated December 14, 2010. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what Sprott Power believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and Sprott Power does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.

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