Eric Sprott, Chief Executive Officer of Sprott Asset Management Inc. says that effective 16:00 ET, March 1, the Sprott Canadian Equity Fund will be capped to new subscriptions.

No new subscriptions will be accepted into the fund, except for purchases by pre-authorized contribution plans, automatically reinvested distributions and exceptions made at the discretion of the Investment Manager.

Sprott says “that this is a hard-cap and therefore applies to all existing unithholders in the fund.”

After receiving sizable net subscriptions into the fund since its re-opening on January 4, 2005, Sprott says the decision to cap the fund was made by the portfolio managers in an effort to maintain and maximize performance of the Fund, and to achieve its objective of outperforming the broad Canadian equity market, providing long term capital appreciation and value for investors.

Sprott reserves the right to re-open the Fund in the future.

Sprott is a Toronto based private company with over $2.3 billion in assets under management primarily for institutions, endowments and high net worth individuals.

It is the investment manager of the Sprott Energy Fund, Sprott Gold and Precious Minerals Fund, Sprott Canadian Equity Fund, Sprott Bull/Bear RSP Fund, Sprott Hedge Fund LP, Sprott Hedge Fund LP II and the Sprott Opportunities Hedge Fund LP.