Q3 2009 Highlights:

- Assets Under Management ("AUM") were $4.3 billion as at September 30,

2009, compared to $5.6 billion as at September 30, 2008 and

$4.4 billion as at June 30, 2009

- Management Fees were $20.7 million, a decrease of $12.2 million, or

37%, from Q3 2008

- Base EBITDA was $8.0 million, compared with $15.2 million in the

comparable prior year period

- Net income was $5.5 million ($0.04 per share), versus $3.7 million

($0.02 per share) in Q3 2008

- Declared a third quarter dividend of $0.025 per share on November 3,

2009

- Introduced low-load option for investors in Series A units of Sprott

mutual funds

- Effective November 2, 2009, expanded the distribution of the

FNSSC(1)-Multi Manager Fund from FNSSC members only to all eligible

investors (name of the fund changed to "Sprott Multi-Manager Fund")

-----------------------

(1) Federation of National Specialty Societies of Canada

"During the third quarter, many of our mutual funds benefited from the continued momentum in equity markets, as well as superior stock picking by our investment managers, with both the Sprott Small Cap Equity Fund and the Sprott Energy Fund posting returns of more than 17%," said Eric Sprott, President and CEO of Sprott Inc. "We continue to believe that gold and other precious metals will be the best store of value for investors over the longer term. As such, several of our larger funds have significant investments in physical gold and silver, as well as mining stocks. So far this year, this thesis has been supported by the performance of the Sprott Gold and Precious Minerals Fund, which gained over 21% during the third quarter and over 77% for the first nine months of 2009."

"We continue to work diligently to drive growth in each of our three businesses: Sprott Asset Management, Sprott Private Wealth, and Sprott Consulting. Sprott Consulting has added a valuable private equity-type component to our revenue mix, and contributed significantly to our revenues in 2008. We expect further strong performance from this business in the future," added Mr. Sprott. "As we continue to expand our product offering, we recently began offering external income products to our Sprott Private Wealth clients. We are continually seeking new opportunities to provide a greater breadth of investment choices to our clients, and expect to introduce one or more new products in the next several months."

Assets Under Management

----------------------------------------------------------------- --------

Three Three Nine Nine

months months months months

ended ended ended ended

September September September September

$ millions 30, 2009 30, 2008 30, 2009 30, 2008

----------------------------------------------------------------- --------

AUM, beginning of quarter 4,444 7,726 4,449 6,215

----------------------------------------------------------------- --------

Net sales (redemptions) (252) 122 (503) 680

----------------------------------------------------------------- --------

Market value appreciation

(depreciation) of portfolios 146 (2,242) 392 (1,289)

----------------------------------------------------------------- --------

AUM, end of quarter 4,338 5,606 4,338 5,606

----------------------------------------------------------------- --------

In the third quarter of 2009, AUM decreased to $4.3 billion, compared to $4.4 billion at June 30, 2009. The $0.1 billion decrease reflected market value increases of $0.15 billion, offset by net redemptions of $0.25 billion.

On a year-over-year basis, AUM decreased by 22.6% to $4.3 billion compared to $5.6 billion at September 30, 2008. The decrease in AUM is due to the lower market value of portfolios combined with net redemptions since June 30, 2008.

Income Statement

Total revenue for the third quarter of 2009 decreased by 13.4% to $22.0 million, from $25.4 million in the third quarter of 2008. For the nine months ended September 30, 2009, total revenue was $71.8 million, a decrease of 33.6% from the corresponding period in 2008. Total revenue consists of management fees, crystallized performance fees, net gains and losses from proprietary investments, and interest and other income.

Management fees declined by 37.0% to $20.7 million, from $32.9 million in the third quarter of 2008, as monthly average AUM decreased by approximately 37.0% over the same period. For the first nine months of 2009, management fees declined by 36.5% to $65.0 million, compared to $102.3 million for the nine months ended September 30, 2008.

Crystallized performance fees for the three- and nine-month periods ended September 30, 2009 were $0.2 million and $2.4 million, compared to $1.3 million and $5.6 million in the prior year.