Sprott Strategic Fixed Income Fund Closes $210 Million Initial Public Offering

TORONTO, July 19, 2011 - Sprott Asset Management LP ("Sprott") is pleased to announce that Sprott Strategic Fixed Income Fund (the "Fund") has completed its initial public offering of 21,000,000 units (the "Units") at a price of $10.00 per Unit. The Units commence trading on the Toronto Stock Exchange on July 19, 2011 under the symbol SFI.UN.

"We are pleased with the positive response we have experienced with this fund offering, says James Fox, President of Sprott. We continue to broaden our product shelf with unique and compelling income and balanced solutions. In only 14 months, Sprott's AUM in fixed income and balanced funds has grown from zero to almost $500 million, highlighting our success in hiring and partnering with Best-in-Class investment teams."

The Fund has been created to provide exposure, on a tax advantaged basis, to an actively managed portfolio (the "Portfolio") comprised primarily of long and short positions in fixed income securities from across the globe. In addition, Sprott will actively manage the Portfolio's currency exposure to both mitigate risk and enhance Portfolio returns. The Fund will obtain economic exposure to the Portfolio through a forward agreement. The individuals who will have primary responsibility for the execution of the Fund's investment strategy are Scott Colbourne and Michael Craig, as lead portfolio managers, and Ben Chim, as credit strategist.

The Fund will seek to achieve the following investment objectives: (i) to maximize absolute total returns to holders of Units (the "Unitholders") with low volatility relative to traditional, long-only bond funds; and (ii) to provide Unitholders with monthly tax-advantaged distributions, initially targeted to be 6% per annum on the original issue price of $10.00 per Unit.

The Fund has granted the agents for the offering an over-allotment option to acquire up to an additional 3,150,000 Units at a price of $10.00 per Unit exercisable in whole or in part during the next thirty days.

The syndicate of agents for the offering was led by RBC Capital Markets and includes CIBC, TD Securities Inc., BMO Capital Markets, National Bank Financial Inc., Scotia Capital Inc., Canaccord Genuity Corp., GMP Securities L.P., HSBC Securities (Canada) Inc., Wellington West Capital Markets Inc., Desjardins Securities Inc., Mackie Research Capital Corporation, Macquarie Private Wealth Inc., Manulife Securities Incorporated., Raymond James Ltd., and Rothenberg Capital Management Inc.