Toronto, December 21, 2010 - First Asset Power Gen Fund (TSX: PGT.UN) (the "Fund"), Sprott Power Corp. ("Sprott Power") and its community partners, the Municipality of Saint-Philemon and the Region of Bellechasse, announced today that they have been awarded a renewable power purchase agreement ("PPA") with Hydro Quebec Distribution under the A/O 2009-02 community tender program. The PPA is for 24 MW of wind power using Enercon wind turbine generator technology and is to be commissioned before December 1, 2014.
The award of the new PPA will increase the project capacity accepted for long-term PPAs from 67.0 MW to 91.0 MW within the recently announced merger of Sprott Power and the Fund. The Fund and Sprott Power announced on December 13, 2010 that they had entered into a definitive agreement for a merger by way of a statutory plan of arrangement.
Jeff Jenner, the President and Chief Executive Officer of Sprott Power Corp., said: "Sprott Power and our community partners are pleased that the development project in Saint-Philemon has been awarded the contract. We look forward to completing the environmental studies and stakeholder consultations in accordance with the policies and procedures within the Province of Quebec."
Barry Gordon, President and Chief Executive Officer of First Asset, said: "We are delighted that the build out of Sprott Power's national footprint continues. We believe this is further evidence of the strength of Sprott Power's strategic position with the renewable energy industry."
About Sprott Power Corp.
Sprott Power is a privately-held Canadian-based dedicated to the development and financing of renewable energy projects. Through acquisitions, partnerships and joint ventures, Sprott Power seeks to provide its shareholders with exposure to the power generation sector. Sprott Power is managed by Sprott Power Consulting LP, of which Sprott Consulting LP, a business unit of Sprott Inc. (TSX:SII), is the sole limited partner.
For more information on Sprott Power, please visit www.sprottpower.com or contact Jeff Jenner at 416-943-6387.
About First Asset PowerGen Fund
The Fund is an actively managed fund that provides Fund Unitholders with exposure to both power related assets listed on the TSX and power related assets that are not listed on the TSX, through direct and indirect ownership of such assets. The portfolio of the Fund consists of power related assets, defined as power generation assets involved in the generation and sale of electricity including hydro-electric, gas fired, coal fired, wind, biomass and biogas, among others and related energy infrastructure assets which include construction, fuel reclamation, pipeline, trucking and other related services to the power generation industry. For further information, please call First Asset at 416-642-1289 or 1-877-642-1289 or visit www.firstasset.com.
This release contains "forward-looking statements" which reflect the current expectations of the Fund and Sprott Power. These statements reflect First Asset's and Sprott Power management's current beliefs with respect to future events and are based on information currently available to management. Forward-looking statements in this press release include, but are not limited to, the anticipated closing of the Arrangement, the timing for such closing, the anticipated benefits from the Arrangement including the future power production, development capacity and growth prospects of New Sprott Power following the completion of the Arrangement, the completion of the transaction with Sky Gen, the commission date of the Saint Philemon Project and completion of any environmental studies. Forward-looking statements involve significant known and unknown risks, uncertainties and assumptions, including with respect to the anticipated completion of the Arrangement, the closing of the Arrangement, the anticipated benefits from the Arrangement including the future power production, development capacity and growth prospects of New Sprott Power following the completion Arrangement, , the completion of the acquisition of Sky Gen, the commission date of the Saint Philemon Project and completion of any environmental studies. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements including, without limitation, risks listed under the heading "Risk Factors" in the Fund's annual information form dated March 31, 2010 and under the heading "Risk Factors" in the joint information circular dated December 14, 2010; the closing of the Arrangement could be delayed if necessary regulatory approvals and securityholder consents are not obtained on the timelines planned or the transaction may not be completed if such approvals and consents are not obtained; or any other conditions to closing are not satisfied. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking statements contained in this release. Although the forward-looking statements contained in this release are based upon what the Fund and Sprott Power believe to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and the Fund and Sprott Power do not assume any obligation to update or revise them to reflect new events or circumstances, except as required by law.