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Press release from CNW Group

Sprott Power Corp. Announces the Signing of a Long-Term Power Purchase Agreement with Hydro-Québec Distribution for the Sale of 24 Megawatts of Wind Power

Thursday, March 24, 2011

Sprott Power Corp. Announces the Signing of a Long-Term Power Purchase Agreement with Hydro-Québec Distribution for the Sale of 24 Megawatts of Wind Power07:00 EDT Thursday, March 24, 2011TORONTO, March 24 /CNW/ - Sprott Power Corp. ("Sprott Power") (TSX: SPZ), a developer, owner and operator of renewable energy projects, together with the Municipalité de Saint-Philémon and the MRC de Bellechasse (the "Community Partners"), today announced the signing of a 20 year power purchase agreement ("PPA") with Hydro-Québec Distribution ("HQD"") for the 24 megawatt Saint-Philémon wind farm.  The agreement to purchase clean, renewable electricity is part of HQD's previously issued call for tenders for the purchase of wind generated electricity in Québec in order to meet the long-term electricity needs of its Québec customers through Aboriginal and community based projects and is subject to the approval of the Régie de l'Énergie.Sprott Power, through its subsidiaries, will own 51% of the project and will manage the construction and operations of the facility.  The Community Partners will own 49% of the project.  The Saint-Philémon wind farm will be located near the town of Saint-Philémon, which is approximately 70 kilometers south east of Québec City in the MRC de Bellechasse in the Chaudière-Appalaches region of Québec.  The wind farm will be comprised of 8 wind turbines with a total installed capacity of 24 megawatts.  In addition to the return on investment earned by the Community Partners it is anticipated that the project will provide additional economic benefits to the community during construction and the 20 year operational life of the facility.  As a condition of the PPA, more than 60% of the capital cost of the project will be incurred in the province of Québec."Today's announcement is an important milestone for the landowners, local officials and many others in and around Saint-Philémon who have continued to support this project throughout its development," said Jeff Jenner, President and CEO of Sprott Power.  "This project enables Sprott Power and its Community Partners to help the Province of Québec achieve its renewable energy targets."''It is clear that our community will gain from the ancillary effects of this project that will contribute to the development of our region. Our MRC has always shown a forward-looking character and our financial contribution is in line with this objective, '' said Mr.  Hervé Blais, Préfect of the Bellechasse MRC.  "The signing of the agreement represents another step towards the realization of the project that will be submitted to not only the citizens of Saint-Philémon, but also the citizens of the MRC, during the consultation process of the BAPE."It is anticipated that construction of the Saint-Philémon wind farm, which is subject to permitting and financing, will begin in 2013 and that commercial operations will begin in the fourth quarter of 2014.About Sprott Power Corp.Sprott Power is a publicly-traded (TSX: SPZ) Canadian-based company dedicated to the development, owning and operating of renewable energy projects. Through acquisitions, partnerships and joint ventures, Sprott Power provides its shareholders with exposure to the renewable 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.Forward-Looking StatementsCertain information contained in this press release may constitute "forward-looking information" which reflect the current expectations of Sprott Power. This information reflects Sprott Power's current beliefs with respect to future events and are based on information currently available to management. Forward-looking information involves significant known and unknown risks, uncertainties and assumptions. 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 information including, without limitation, the risks listed under the heading "Risk and Uncertainties" in the Management's Discussion and Analysis of Financial Results dated March 14, 2011.  Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information contained in this release. Although forward-looking information contained in this release is based upon what Sprott Power believes to be reasonable assumptions, management cannot assure investors that actual results, performance or achievements will be consistent with this forward-looking information. The forward-looking information is made as of the date of this release and Sprott Power does not assume any obligation to update or revise it to reflect new events or circumstances, except as required by law.For further information: Jeff Jenner, CA, CBV President and Chief Executive Officer Sprott Power Corp. 416-943-6387 Catherine Love Investor Relations The Equicom Group 416-815-0700 ext. 266