Sprott Asset Management Inc. Closing of the Sprott Hedge Fund LP

Date: Tuesday, June 11, 2002

TORONTO, ONTARIO – June 11, 2002. Sprott Asset Management Inc. (“SAM”) today announced the closing of the Sprott Hedge Fund LP to new and existing investors effective July 31, 2002 at 4:00 p.m. EDT. Final subscriptions will be accepted on July 31, 2002. The decision to close the Fund was as a result of the Fund approaching its prescribed Cdn$250 million capital limit. The Fund, which has approximately Cdn$324 million in assets, has experienced significant inflows over the past year. Concurrently, SAM is pleased to announce the launch of the Sprott Hedge Fund LP II effective August 30, 2002. The new fund will have an investment strategy similar to the Sprott Hedge Fund LP. SAM is a top ranked, independent, Canadian-owned investment management company with over Cdn$1 billion in assets under management as at June 3, 2002. SAM’s product offering includes mutual funds, hedge funds and managed accounts for institutional and high net worth investors.