Sprott Asset Management LP Announces Sprott 2011 Flow-Through Limited
Partnership

TORONTO, Dec. 22 /CNW/ - Sprott Asset Management LP ("Sprott") is pleased to announce that the Sprott 2011 Flow-Through Limited Partnership (the "Partnership") has filed a preliminary prospectus in connection with its offering of limited partnership units. Receipt for the preliminary prospectus has been issued by the securities commissions and regulatory authorities in each of the provinces and territories of Canada.

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 the Limited Partners.

Attractive Tax-reduction Benefits

Flow-through partnerships are one of the most effective tax reduction strategies that remain available to Canadians. Sprott anticipates that investors participating in 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 as 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 September 30, 2010, Sprott had $6.5 billion in assets under management in various mutual funds and hedge funds, including approximately $5.8 billion dedicated to investments in natural resources. In 2010 alone, as of November 30, 2010, Sprott has invested, on behalf of its funds on a private placement basis, in approximately 221 resource issuers, investing a total of approximately $324 million. The Manager also manages the Sprott 2010 Flow-Through Limited Partnership which has approximately $53 million in assets.

Agents

The offering is being made through a syndicate of agents led by RBC Capital Markets, CIBC and TD Securities Inc., and including BMO Capital Markets, National Bank Financial Inc., Canaccord Genuity Corp., Dundee Securities Corporation, HSBC Securities (Canada) Inc., Scotia Capital Inc., GMP Securities LP, Wellington West Capital Markets Inc., Desjardins Securities Inc., Macquarie Private Wealth Inc. and Manulife Securities Incorporated.

Offering Price

The Partnership will be available for investment in early January 2011. The price per unit is $25.00 with a minimum subscription of 200 units ($5,000).

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.

A preliminary prospectus containing important information relating to these securities has been filed with securities commissions or similar authorities in all the provinces and territories of Canada. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from one of the dealers noted above. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.

For further information:

on Sprott Asset Management,please visitwww.sprott.com or contact us at [phone] or [phone] or [email protected]