Sprott Molybdenum Participation Corporation

Sprott Molybdenum Participation Corporation

Sprott Molybdenum Participation Corporation’s (the “Corporation”) principal business was the holding of investments for capital appreciation by investing in securities of public and private companies that explore for, mine and process molybdenum as well as invest in, hold and sell all commercial forms of molybdenum.

On January 9, 2009, the Corporation announced that, in view of the unfavourable outlook for the price of molybdenum and for issuers involved in the production and sale of molybdenum, its board of directors has determined that a distribution to shareholders of all or substantially all of the assets of the Corporation would be in the best interests of the Corporation and its shareholders.

In July 10, 2009, the Corporation effected the distribution, consisting of a cash distribution of approximately $1.76 per share and one new common share in exchange for each old common share of the Corporation. The payment of the distribution is expected to be July 15, 2009.

In light of the distribution, the Corporation underwent a corporate reorganization. As part of the reorganization, the Corporation entered into an agreement with an arm’s length party pursuant to which, on July 6, 2009, the Corporation issued a 10% secured convertible debenture with a principal amount of $1,350,000 (the “Debenture”). The Debenture has a maturity of one year and is convertible, at the holder's option, into Class A non-voting shares of the Corporation. The net proceeds from the sale of the Debenture were included in the proceeds distributed to shareholders on July 9, 2009, but, as a non-shareholder, the holder of the Debenture did not participate in the distribution.

In exchange for their common shares, shareholders received a cash distribution of approximately $1.76 per share and one new common share. This permitted the shareholders to receive a payment of cash along with the opportunity to continue to hold an equity stake in the Corporation.

Following the distribution, the Corporation changed its name to Cadomin Capital Corporation and intends to actively seek out new corporate opportunities and to pursue material additional business activities. The Corporation has made an application to list the new Common Shares on the NEX board of the TSX Venture Exchange.