Canadian Warrants

Common share symbol: MLY
Common share Cusip No.: 852067 10 7
Trading currency: Canadian dollars
Warrant symbol: MLY.WT
Warrant Cusip No.: 852067 11 5
Warrant trading currency: Canadian dollars
Temporary market-maker: GMP Securities LP

Incorporation: The company was incorporated under the Business Corporations Act (Ontario) by Articles of Incorporation dated Dec. 6, 2006. Pursuant to articles of amendment dated Feb. 20, 2007, the company changed its name from 2121196 Ontario Ltd. to Sprott Molybdenum Participation Corp. and removed the private company restrictions applicable to the company.

Fiscal year-end: Dec. 31
Nature of business: The primary investment objective of the company is to achieve capital appreciation by investing in securities of private and public companies that explore for, mine and/or process molybdenum and by investing in, holding, selling and otherwise transacting in all commercial forms of molybdenum. The company will use substantially all of the net proceeds of the offering to acquire the molybdenum assets.

Manager: Sprott Asset Management Inc.
Transfer agent and registrar: Equity Transfer & Trust Co. at its principal office in Toronto
Dividends: The company has not paid any dividends on its outstanding common shares. The board of directors from time to time, and on the basis of any earnings, the company's financial requirements and any other relevant factor, may consider paying dividends in the future if operational circumstances of the company permit, including earnings, cash flow, financial and legal requirements and business considerations.
Head Office:
Suite 2700
South Tower, Royal Bank Plaza
200 Bay Street
Toronto, Ontario M5J 2J1
Head Office Telephone Number: (416) 362-7172
Fax Number: (416) 362-4928
Toll Free: 1-888-362-7172
E-mail: invest@sprott.com
Website: www.sprottmoly.com
Investor Relations:
Iryna Gordiyenko
Chief Financial Officer
Tel: (416) 943-6477
Email: igordiyenko@sprott.com
 
Toronto, April 4, 2007 – Sprott Molybdenum Participation Corporation (the “Corporation”) is pleased to announce that it and a syndicate of agents led by GMP Securities L.P. and including Cormark Securities Inc., Canaccord Capital Corporation, Fort House Inc., TD Securities Inc. and Dundee Securities Corporation (the “Agents”) have agreed to pricing terms of the Corporation’s initial public offering (the“Offering”). A total of 36 million Units at a price of $5.00 per Unit for gross proceeds of $180,000,000 will be offered for sale. Each Unit shall consist of one common share in the capital of the Corporation and onehalf of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles the holder to acquire, subject to adjustment in certain circumstances, one common share of the Corporation at a price of $7.50 at any time on or prior to the close of business on the date that is 24 months from the closing of the Offering. The closing of the Offering is scheduled to occur on or about April 16, 2007.
The Agents will also be granted an over-allotment option to purchase up to an additional 5% of the aggregate number of Units sold at the closing of the Offering, exercisable at any time prior to 5:00 p.m.EDT on the 30th day following closing of the Offering.
Sprott Asset Management Inc. has acquired 3,976,000 common shares of the Corporation on a privateplacement basis at a price of $4.90 per share for aggregate proceeds to the Corporation of approximately $19,482,400, which amount, upon closing of the Offering, will represent approximately 9.94 percent of the issued and outstanding shares of the Corporation.
The Corporation will use substantially all of the net proceeds of the Offering to acquire securities of private and public companies that explore for, mine and/or process molybdenum and to acquire physical molybdenum.
The final prospectus and the Offering of the Units are subject to regulatory approvals including certain securities commissions in Canada and the Toronto Stock Exchange.