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Press release from CNW Group

Sprott Power Corp. announces new refinancing agreement to extend through 2016

Friday, December 23, 2011

Sprott Power Corp. announces new refinancing agreement to extend through 201616:45 EST Friday, December 23, 2011TORONTO, Dec. 23, 2011 /CNW/ - Sprott Power Corp. (TSX:SPZ), a developer, owner and operator of renewable energy projects, today announced that it has signed an agreement with Central 1 Credit Union and its credit union partners to renew and extend the term of the Company's debt on its Ontario assets.The maturity term of the debt has been extended to December 2016, at an interest rate reduction of more than 100 basis points compared to the existing loans. Sprott Power anticipates that the renewal will reduce its current debt service costs and interest expense by approximately $300,000 per annum.In addition to the renewal and extension, Sprott Power secured an additional $2.65 million of financing that will be utilized to repay a portion of the Company's vendor take-back debt and for working capital."This new agreement provides additional operating capital for us and reduces our interest and debt service costs for the next 5 years," said Jeff Jenner, Chief Executive Officer of Sprott Power. "We appreciate the commitment Central 1 continues to make to Sprott Power and their confidence in our projects in Ontario which include the Ferndale, Proofline and Ravenswood wind projects.""Renewing our agreement with Sprott Power was well received by our credit union partners in Ontario, who support the Company's focus on the development of renewable energy projects," said Peter Uffelmann, Vice-President, Commercial Lending, Central 1 Credit Union. "We look forward to continuing to build our business relationship with Sprott Power."About Sprott Power Corp. Sprott Power is a publicly-traded (TSX:SPZ) Canadian-based company 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. More information about Sprott Power is available at www.sprottpower.comAbout Central 1 Credit Union Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems, providing liquidity management, payments, Internet banking and trade association services to member credit unions, and banking and transaction services to customers in the corporate and public sectors. For more information, visit www.central1.comForward-Looking Statements Certain information contained in this press release may constitute "forward-looking information" which reflects the current expectations of Sprott Power including potential future savings. This information reflects Sprott Power's current beliefs with respect to future events and is 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 Sprott Power's Management's Discussion and Analysis of Financial Results dated June 13, 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. 416-943-6387jjenner@sprottpower.com       Babak Pedram Investor Relations The Equicom Group 416-815-0700 ext. 264bpedram@equicomgroup.com