Sprott Molybdenum Participation Corporation Releases results for the three and six months ended June 30, 2008



    
    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
    UNITED STATES/
    

    TORONTO, Aug. 6 /CNW/ - (TSX: MLY, MLY.WT) - Sprott Molybdenum
Participation Corporation (the "Corporation") is announcing its results for
the three and six months ended June 30, 2008.
    The change in net assets from operations after taxes of the Corporation
in the three and six months ended June 30, 2008 was an increase of $0.09 and a
decrease of $0.07, respectively. Portfolio Investments generated a gain of
$5.9 million in the second quarter, partially offsetting losses incurred in
the first quarter. For the six months ended June 30, 2008, Portfolio
Investments provided a return of -0.90%, the net asset value per common share
appreciated by 0.66% and the value of the common stock declined by 9.73%. Net
asset value as at June 30, 2008 was $246.2 million or $6.10 per common share.
    We are cognizant of the discount the Corporation's stock price is
experiencing in the market and are active in the normal course issuer bid
("NCIB") that we instituted last year. The Corporation has repurchased and
cancelled a total of 4.1 million shares to June 30, 2008, of which 3.0 million
shares were repurchased in the first two quarters of this year. The NCIB
resulted in the net asset value increase of $0.02 and $0.10 for the three and
six months ended June 30, 2008, respectively. We intend to renew the normal
course issuer bid in August of 2008. We also continue to look for creative
ways of participating in the molybdenum market.
    Approximately 600,000 lbs of contained molybdenum, in form of molybdenum
oxide, generated an unrealized loss of $0.3 million in the quarter and a gain
of $0.9 million year to date, increasing in value from $19.5 million as at
December 31, 2007 to $20.4 as at June 30, 2008.
    The most significant expense of the Corporation for the three and six
months ended June 30, 2008 was a management fee of $1.2 and $2.2 million,
respectively. The management fee is calculated pursuant to the management
services agreement dated April 3, 2007(1). Management fees comprised 78.2% of
the Corporation's total expenses for the quarter and 75.3% of total expenses
year to date.
    Other expenses incurred in the three and six month periods ended June 30,
2008 included general and administrative expenses of $194 and $379 thousand,
respectively, capital taxes of $25 and $86 thousand, respectively, and
director compensation of $36 and $88 thousand, respectively.
    "We still believe that real assets, such as energy and commodities, will
continue to outperform financial assets. We continue to be excited about the
outlook for molybdenum as the 'energy 1 A copy of the management services
agreement is available for review at www.sedar.com and www.sprottmoly.com
metal', and we are encouraged with the progress the companies in our portfolio
are making", commented Mr. Sprott, CEO and President.
    As at June 30, 2008, summary of the investment portfolio of the
Corporation is as follows:

    
                                                       % of Total Net Assets
    -------------------------------------------------------------------------
    Cash and Short term investments                                     9.50
    Portfolio Investments (investments in companies
     that explore for, mine and/or process molybdenum)                 83.73
    Molybdenum Oxide                                                    8.30
    Other assets and liabilities                                       (1.53)
    -------------------------------------------------------------------------
    Total net assets                                                  100.00
    -------------------------------------------------------------------------

    Portfolio Holdings
    Name of Security                                   % of Total Net Assets
    -------------------------------------------------------------------------
    Thompson Creek Metals Company Inc.                                 21.47
    Quadra Mining Ltd.                                                 15.75
    Mercator Minerals Ltd.                                             15.04
    Inca Pacific Resources Inc.                                        11.77
    General Moly, Inc.                                                  6.91
    Roca Mines Inc.                                                     4.39
    TTM Resources Inc.                                                  1.66
    Mosquito Consolidated Gold Mines Limited                            1.05
    International PBX Ventures Ltd.                                     0.99
    Virgin Metals Inc.                                                  0.75
    Golden Phoenix Minerals, Inc.                                       0.68
    Erdene Gold Inc.                                                    0.63
    Torch River Resources Ltd.                                          0.61
    Galway Resources Ltd.                                               0.58
    Western Troy Capital Resources Inc.                                 0.45
    Creston Moly Corporation                                            0.40
    Newmac Resources Inc.                                               0.34
    Tournigan Gold Corp.                                                0.19
    Columbia Yukon Explorations Inc.                                    0.06
    Bard Ventures Ltd.                                                  0.01
    -------------------------------------------------------------------------
    Top portfolio holdings as a percentage of total net assets         83.73
    -------------------------------------------------------------------------


    About Sprott Molybdenum Participation Corporation
    -------------------------------------------------
    
    The Corporation is an investment holding company created to invest in
molybdenum assets. The primary investment objective of the Corporation 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. It is not an investment strategy of the Corporation to actively
speculate with regards to short-term changes in molybdenum prices. The
Corporation's investment mandate will provide investors with several benefits.
It will provide investors with the opportunity to invest in commercial forms
of molybdenum, which is currently unavailable through an exchange. In
addition, it will provide investors with a diversified portfolio of securities
of private and public companies that explore for, mine and/or process
molybdenum.





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