Sprott Asset Management LP Announces Mutual Fund Risk Rating Change

TORONTO, ONTARIO--(Marketwired - May 24, 2013) - Sprott Asset Management LP, the manager of the Sprott Mutual Funds (the "Manager"), today announced a change to the risk rating of Sprott Canadian Equity Fund and Sprott Canadian Equity Class of Sprott Corporate Class Inc. (collectively, the "Funds").

The Manager determines the risk rating for certain of its funds in accordance with the methodology recommended by the Fund Risk Classification Task Force of The Investment Funds Institute of Canada (the "Methodology"). The Methodology requires that the analysis for determining the risk rating of a fund be repeated each year in conjunction with the fund's prospectus renewal to ensure that the fund volatility risk classification assigned to the fund remains up-to-date and appropriate. As a result of applying this annual analysis to the Funds, the Manager has decided to change the current risk rating of Medium to High assigned to the Funds to a risk rating of High.

These changes will be reflected in the simplified prospectuses of the Sprott Mutual Funds and Sprott Corporate Class Inc., each of which will be filed with Canadian securities regulators on or about May 24, 2013 and May 30, 2013, respectively.

Sprott Canadian Equity Fund seeks to outperform the broad Canadian equity market as measured by the S&P/TSX Composite Total Return Index (or its successor index), over the long term of 5+ years, providing long-term capital appreciation and value by investing primarily in small-to-mid capitalization stocks of Canadian issuers. To assist in achieving this objective, this fund may focus its assets in specific industry sectors and asset classes based on analysis of business cycles, industry sectors and market outlook. Sprott Canadian Equity Class seeks a similar return to its underlying fund, Sprott Canadian Equity Fund, by investing substantially all of its assets in securities of that fund.

The investment objectives and strategies of the Funds will not change as a result of the risk rating change.

Sprott Asset Management LP (www.sprott.com), a wholly owned subsidiary of Sprott Inc. (www.sprottinc.com), is a fund company dedicated to achieving superior returns for its investors over time. Sprott Asset Management LP manages assets primarily for institutions, endowments and high net worth individuals and is the investment manager of the Sprott Mutual Funds. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors should consult their financial advisor to determine if the Sprott Mutual Funds may be sold in their jurisdiction.