Sprott Molybdenum Participation Corporation Releases results for the three and twelve months ended December 31, 2007



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

    TORONTO, Feb. 28 /CNW/ - (TSX: MLY, MLY.WT) - Sprott Molybdenum
Participation Corporation (the "Corporation") is pleased to announce its
results for the three and twelve months ended December 31, 2007.
    The increase in net asset value from operations after taxes per share,
adjusted to provide a meaningful measure(1), amounted to $1.22 for the year
and a decrease of $0.02 for the fourth quarter. In dollar terms, the increase
in net assets from operations after taxes amounted to $52.7 million for the
year and a decrease of $0.8 million for the fourth quarter.
    In 2007, the Corporation's assets performed well. Portfolio Investments
generated net unrealized and realized gains of $59.6 million and
$19.5 million, respectively, which translated into a return on portfolio
investments of 48.06%. In the fourth quarter of 2007, positions in certain
equity investments, including General Moly Inc. (formerly Idaho General Mines
Inc.) and Moly Mines Ltd., were decreased, shifting gains from unrealized to
realized. Overall, in the fourth quarter, Portfolio Investments generated a
loss of approximately $1.7 million, decreasing the return for the year from
49.05% at the end of the third quarter to 48.06% at the end of the year.
Securities that contributed the most to this return included Thompson Creek
Metals Company Inc. (formerly Blue Pearl Mining Ltd.), Quadra Mining Ltd.,
General Moly, Inc. (formerly Idaho General Mines Inc.) and Roca Mines Inc.
    Approximately 600,000 lbs of molybdenum, in the form of molybdenum oxide,
purchased in the second quarter at $28.40 USD per lb, was delivered throughout
the fourth quarter. With the price of the metal at $32.70 USD as at
December 31, 2007, this investment generated unrealized gains of $1.1 million
or 6.46% in the fourth quarter and $2.9 million or 17.20% for the year.
    The most significant expenses of the Corporation for the year ended
December 31, 2007 were incentive fees of $16.4 million and management fees of
$3.2 million, respectively, with both fees calculated pursuant to the
management services agreement dated April 3, 2007(2) (of the total,
$1.7 million of incentive fees and $1.3 million of management fees were
incurred in the fourth quarter). Together, incentive and management fees
comprised 91.6% of the Corporation's total expenses for the year and 85.16% of
total expenses in the fourth quarter.
    Other material expenses incurred in 2007 included general and
administrative expenses of $628.5 thousand, transaction costs of
$224.7 thousand, directors' fees of $105.2 thousand and advisory fees of
$411.3 thousand. Advisory fees were paid to third party investment advisors in
the second quarter for consulting and advisory services provided to the
Corporation in relation to some of its more significant investments.
    The net asset value of the Corporation as at December 31, 2007 was
$262.9 million or $6.06 per common share.
    Throughout most of the second half of 2007, the Corporation's stock has
been trading at a discount of 20-30% of net asset value. In an attempt to
remedy the situation, a normal course issuer bid was initiated in August 2007.
The purpose of the normal course issuer bid is to provide the Corporation with
a mechanism to decrease the spread between the net asset value per share and
the market price of the shares. As at December 31, 2007, the Corporation had
purchased and cancelled a total of 1,144,900 common shares. An additional 
629,800 shares were repurchased subsequent to year-end.

    
    As at December 31, 2007, the holdings of the Corporation were as follows:

    Name of Security                                   % of Total Net Assets
    -------------------------------------------------------------------------
    Thompson Creek Metals Company Inc.                                 20.67
    Quadra Mining Ltd.                                                 11.98
    Inca Pacific Resources Inc.                                        11.24
    Mercator Minerals Ltd.                                              8.78
    General Moly, Inc. (formerly Idaho General Mines Inc.)              7.05
    Roca Mines Inc.                                                     6.05
    Moly Mines Limited                                                  1.94
    Virgin Metals Inc.                                                  1.79
    Galway Resources Ltd.                                               1.27
    TTM Resources Inc.                                                  1.27
    International PBX Ventures Ltd.                                     1.22
    Mosquito Consolidated Gold Mines Limited                            1.20
    Golden Phoenix Minerals, Inc.                                       1.06
    Erdene Gold Inc.                                                    0.72
    Torch River Resources Ltd.                                          0.54
    Western Troy Capital Resources Inc.                                 0.53
    Creston Moly Corporation (formerly Georgia Ventures Inc.)           0.47
    Tournigan Gold Corp.                                                0.25
    Columbia Yukon Explorations Inc.                                    0.11
    -------------------------------------------------------------------------
    Portfolio holdings as a percentage of total net assets             78.14
    -------------------------------------------------------------------------
    


    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.

    
    -----------------------------------
    (1)    This is a non-GAAP measure, please refer to "Financial
           Highlights" section of Management Report of Fund Performance
           ("MRFP") for further details. The MRFP is available at
           www.sedar.com and www.sprottmoly.com
    (2)    A copy of the management services agreement is available for
           review at www.sedar.com and www.sprottmoly.com
    





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SPROTT MOLYBDENUM PARTICIPATION CORP.

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