Sprott Asset Management LP Announces Proposed Changes to Sprott Multi-Manager
Fund

TORONTO, Oct. 18 /CNW/ - Sprott Asset Management LP ("Sprott") today announced that it proposes to change the investment objectives of Sprott Multi-Manager Fund. If the change in investment objectives is approved by unitholders and implemented by Sprott, the Fund's investment strategy will also change, while the management fee for Series A units and Series F units will be reduced by 0.25% and the Fund's name will change to Sprott Tactical Balanced Fund.

The proposed Sprott Tactical Balanced Fund would continue to provide exposure to a mix of investment strategies, but with greater asset class diversification by including Sprott's recently launched fixed income funds for which Scott Colbourne and Michael Craig are portfolio managers. In addition, the Fund would employ a more flexible and opportunistic asset allocation approach to seek to improve risk-adjusted return potential in a variety of market environments. "We believe the proposed changes will benefit investors by providing them with greater asset class diversification, additional best-in-class portfolio managers, as well as a tactical asset allocation approach which will be driven by Sprott's macroeconomic and market views," says James Fox, President of Sprott Asset Management.

Sprott will seek unitholder approval for the proposed investment objective change at a special meeting of unitholders to be held on or about November 25, 2010. If the meeting is adjourned, the adjourned meeting will be held on or about November 29, 2010. If unitholder approval is obtained, Sprott proposes to change the investment objective of the Fund effective on or about November 30, 2010. Subject to the change in investment objectives, the changes to the Fund's investment strategies, name, and management fees will be effective on or about November 30, 2010.

Sprott Asset Management LP (www.sprott.com), together with its affiliates and related entities, provides management and investment advisory services to many entities, including the Sprott Mutual Funds, the Sprott Hedge Funds, the Sprott Offshore Funds, the Sprott discretionary managed accounts, and management of certain companies, such as Sprott Resource Corp.

For further information: on Sprott Asset Management LP, please visit www.sprott.com; Investor contact information: [phone] or [phone] or [email protected]