SII

• Overall Market Context: The second quarter of 2026 was a challenging period marked by severe precious metals volatility, driven by cyclical factors including shifting monetary policy expectations, a stronger U.S. dollar, tightening global liquidity, and rising geopolitical uncertainty. Management emphasized that long-term fundamentals for precious metals remain intact, supported by rising government debt, persistent fiscal deficits, ongoing monetary debasement, and growing demand for alternative reserve assets.

• Firmwide Financial Performance: Total firm AUM ended Q2 2026 at $55.6 billion, down 15% from the end of Q1 2026. Net redemptions totaled $0.4 billion for the quarter, concentrated in precious metals physical trusts. Average AVM for Q2 was $63.9 billion, up 70% year-over-year, and year-to-date average AUM was $66.6 billion, up 88% year-over-year, as prior period inflows and market gains more than offset the Q2 precious metals pullback. Q2 2026 net income was $34.3 million, up $20.8 million year-over-year, and adjusted EBITDA was $50.8 million, up $25.3 million year-over-year. The firm remains debt-free with a strong cash and liquidity position, and generates significant free cash flow. Adjusted EBITDA margins have grown from 53% to 71% over time, delivering strong operating leverage without financial leverage.

• Product Development & Scaling: Sprott has grown its product suite organically to capitalize on long-term secular trends including electrification, growing power demand from AI data centers, energy security, and defense technologies. Newer ETF launches are hitting $50 million AUM scaling targets much faster than prior offerings; the recently launched REXC Rare Earths X China ETF reached this milestone in just 32 trading days, faster than any prior launch. Faster scaling allows new products to reach profitability sooner and meet distributor approval thresholds more quickly.

• Capital Return: The firm continues to repurchase shares opportunistically under its NCIB buyback program.

• Management maintained its long-term bullish outlook for both precious metals and critical materials, emphasizing that the Q2 2026 price correction was driven by short-term cyclical factors rather than broken long-term fundamentals. • Critical materials are expected to see sustained long-term demand growth driven by geopolitical supply security efforts, global energy transition, and increasing investor awareness and allocation; management noted the trend is still in early stages and will play out over many years. • Fundraising for the fourth private lending fund is underway, with a final closing expected sometime in 2027. • No changes to prior long-term financial or operational targets were announced.

1. Physical Precious Metals Trusts: AUM decreased by $8.2 billion (16%) quarter-over-quarter to $43.0 billion, driven by a 14.1% decline in spot gold and 22% decline in spot silver, and experienced net redemptions from profit taking. This segment represented ~77.3% of total Q2 2026 AUM. The legacy combined Gold and Silver Trust saw larger relative outflows than single-metal precious metals trusts due to its legacy structure and wider trading discount. 2. Critical Materials ETFs: AUM declined 10% quarter-over-quarter, but delivered positive net flows despite the broader market downturn, with the uranium trust bucking the overall outflow trend. Newer launches such as the REXC Rare Earths ETF reached scaling targets much faster than prior products. This segment was a bright spot of net growth for the quarter. 3. Managed Equities: AUM contracted by ~$0.7 billion during the quarter, as lower precious metal prices pulled down mining equity valuations, and the segment saw modest overall net redemptions. The Sprott USA sub-segment delivered positive net flows as the conversion of legacy brokerage client accounts to AUM completed. 4. Private Strategies: AUM totaled $2 billion as of June 30, 2026. The segment contributed to year-to-date earnings via carried interest crystallization in Q1 2026. Fundraising for the fourth private lending fund is currently ongoing.

• Precious metals prices face significant short-term volatility driven by shifting interest rate expectations, U.S. dollar strength, and changes in global liquidity conditions, which can lead to investor redemptions and AUM declines. • Critical materials supply is constrained by long project lead times, geopolitical concentration of production and refining, and operational disruptions, which can create price volatility even amid strong structural demand. • The combined legacy Gold and Silver Trust has a structural disadvantage relative to single-metal precious metals products, leading to wider trading discounts and higher vulnerability to redemptions during market downturns.

Q: Analyst Matthew Lee asked what level of AUM growth Sprott could expect for its ETF business if critical material prices stay flat for the next 1-2 years, and what is driving the all-time high margins for exchange-listed products despite a 20% drop in net fees. / A: Management responded that critical materials exposure is part of a multi-year secular trend driven by geopolitical competition and the need to build Western mining and refining capacity to reduce reliance on China. They noted investor allocation to the space is still at an early stage, and even small capital reallocations from large generalist pools can drive continued inflows regardless of near-term price moves. For margins, management explained that the gains are driven by clear scale effects: fixed costs decline as a percentage of AUM as funds grow, and service provider fees also drop as a percentage of AUM with size. Break-even for most North American 40 Act ETFs is around $25 million, so faster scaling of new funds quickly improves overall segment profitability.

Q: Analyst Graham Riding asked what two key commodities are best positioned to benefit from energy security and rising electricity demand themes, and what factors are most impactful for near-term precious metals prices. / A: Management highlighted copper and uranium: copper is the linchpin for all electrification, faces persistent supply disruptions and long lead times for new projects, and is already near all-time highs reflecting its strategic scarcity; uranium benefits from the global rebound in nuclear power for reliable base-load grid capacity, with resilient pricing supported by a structural supply deficit. For precious metals, management noted central bank buying has reaccelerated and is currently supporting prices, and the key near-term catalyst for new highs would be renewed market expectations of quantitative easing, which they suggested may already be emerging from recent central bank currency intervention.

Q: Analyst Graham Riding asked why the combined Gold and Silver Trust saw larger relative outflows than Sprott's other precious metals funds. / A: Management explained the trust is a legacy product acquired in 2018 that holds both gold and silver. Most modern investors prefer to hold single-metal exposures to match their specific views, so the combined structure has long been less attractive to institutional investors. It also typically trades at a wider discount to net asset value than Sprott's single-metal trusts, making it more vulnerable to redemptions during market pullbacks.

Q: Analyst Mike Kozak asked what framework guides Sprott's share buyback activity under the NCIB program, and if the firm has been active in Q3 2026. / A: Management responded that buyback activity is guided by internal valuation based on Sprott's own financials and cash levels, not peer comparisons, and the firm uses a dollar-cost averaging approach. The lower the share price, the more aggressive the buyback activity, and the firm confirmed it has already been active in Q3 2026. Small routine purchases are also made during blackout periods to maintain compliance with TSX requirements for annual program renewal.

Q: Analyst Katie Chen asked what factors allowed the new REXC Rare Earths ETF to scale so much faster than prior products. / A: Management cited two core reasons: strong market timing, as investor and government interest in rare earths supply security has grown sharply recently, with governments actively trying to crowd in private investment to reduce reliance on China. Second, the product is unique: it is the only pure-play rare earths ETF with no Chinese equity exposure, a deliberate design to capitalize on the ongoing global reshoring trend for critical material supply chains.