Sprott

Fund Investment Objectives

The Sprott Offshore Fund, Ltd. investment objective is to maximize absolute returns on investments while attempting to mitigate market risk. The Fund intends to accomplish its set objective through superior securities selection by taking both long and short investment positions. The Fund's managers may also execute arbitrage strategies, seek spin-off opportunities and participate in select private placements in order to maximize investment returns. The investment team will vary the allocation of long and short positions depending on their view of the domestic and international economy and market trends including liquidity flows within the U.S. financial system.