GROW SECOND QUARTER 2019 Results Webcast

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Financial Officer Holly Schoenfeldt, Marketing and

1 GROW SECOND QUARTER 2019 Results Webcast Frank Holmes, CEO and Chief Investment Officer Lisa Callicotte, Chief Financial Officer Holly Schoenfeldt, Marketing and Public Relations Manager US.FUNDS February

2 Today s Presenters Frank Holmes Lisa Callicotte Holly Schoenfeldt 2

3 Forward-Looking Statements During this webcast we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don t pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and the corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today, and U.S. Global Investors accepts no obligation to update them in the future. 3

About U.S. Global Investors (GROW) U.S. Global Investors, Inc. is an innovative investment manager with vast experience in global markets and specialized sectors.

4 About U.S. Global Investors (GROW) U.S. Global Investors, Inc. is an innovative investment manager with vast experience in global markets and specialized sectors. Founded as an investment club, the company became a registered investment adviser in 1968 and has a longstanding history of global investing and launching first-of-their kind investment products, including the first no-load gold fund. U.S. Global Investors is well known for expertise in gold and precious metals, natural resources and emerging markets. 4

5 GROW Strengths Strive to be the go-to stock for exposure to emerging markets, resources, gold and digital currencies Debt-free, strong balance sheet with a reflexive cost structure Monthly dividend and return on equity discipline 5

6 Top Institutional Holders of GROW 1. Royce and Associates 8.75% 2. Financial & Investment 4.72% Management Group 3. The Vanguard Group 3.67% 5. Blackrock Institutional 2.60% Trust Company 6. Perritt Capital Management 1.73% Percentage of shares outstanding Source: NASDAQ, Data as of December

7 GROW Dividends Paid Monthly Consistently paid for more than 10 years Current yield at share price of $1.16 as of 02/12/ % Monthly dividend payment of $ Approved through March 2019 Reviewed by the Board quarterly 7

8 Share Repurchase Program in Motion The board approved a repurchase of up to $2.75 million of its outstanding common stock on the open market through calendar year 2019 For the quarter ended December 31, 2018, the Company repurchased 11,000 class A shares using cash of approximately $13,000 May be suspended or discontinued at any time 8

9 Balance Sheet Strength No Debt Started investing in higher earning securities Investment in HIVE Blockchain Technologies * 9

10 Earnings Per Share Quarterly CORPORATE EVENTS IMPACTING EARNINGS Transition to Atlantic Fund Services Mainly due to indirect investment in HIVE accounted for using the equity method of accounting Closed Money Market Funds 14 Volatility in cryptocurrency space 21 10

11 Quarterly Average Assets Under Management 11

12 Follow the Money 12

13 In the Race to the Bottom, Everyone Ends Up Last The seismic shift into indexing has come with some unexpected consequences, including price distortion. Buying cheap often comes with a high price in the long run. There is no free lunch. 13

14 Sharing Insights With Financial Media and Industry Experts on a Range of Topics Mining & Investment Latin America Summit 14

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16 For use with institutions only, not for use with retail investors. 16

17 Gold Demand: Fear Trade vs Love Trade 17

18 Gold s Love Trade: Cultural Celebrations Prompting the Purchase of Gold Indian wedding season spans from September through year-end. 18

19 Driver: The Fear Trade Jerome Powell, Chairman of the Federal Reserve President Donald Trump Rising Interest Rates Unwinding QE Trade Wars Lower Corporate Taxes 19

Managing Expectations See Our Managing Expectations Whitepaper at Understanding Volatility of Asset Classes Standard deviation based on 10-year daily data as of

±18% WTI Crude Oil ±2% ±38% Source: Bloomberg, U.S. Global Investors Past performance is no guarantee of future results.

20 Managing Expectations See Our Managing Expectations Whitepaper at Understanding Volatility of Asset Classes Standard deviation based on 10-year daily data as of 12/31/2018 NYSE Arca Exchange Gold BUGS Index Daily Rolling 1 Year ±3% ±40% MSCI Emerging Markets (HUI) ±1% ±27% S&P 500 Index (SPX) ±1% ±18% Gold Bullion ±1% ±18% WTI Crude Oil ±2% ±38% Source: Bloomberg, U.S. Global Investors Past performance is no guarantee of future results. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility. 20

21 Major Events Suppressing The Price of Bitcoin 21

22 Suppression Of Gold? 22

of the Board of Directors of HIVE Blockchain Technologies. Both Mr. Holmes and U.S.

23 In September 2017, U.S. Global Announced Strategic Investment in HIVE Blockchain Technologies Ltd. with Frank Holmes Becoming Chairman of Board Frank Holmes has been appointed non-executive chairman of the Board of Directors of HIVE Blockchain Technologies. Both Mr. Holmes and U.S. Global Investors own shares of HIVE. Effective 8/31/2018, Frank Holmes serves as the interim executive chairman of HIVE. 23

For One-Day and Ten-Day Periods, Ethereum and Bitcoin Are More Volatile Than The Stock Market Standard Deviation For One Year, as of 12/31/18 One Day Ten Day S&P 500 Index (S&P) 1% 3% Gold Bullion 1%

24 For One-Day and Ten-Day Periods, Ethereum and Bitcoin Are More Volatile Than The Stock Market Standard Deviation For One Year, as of 12/31/18 One Day Ten Day S&P 500 Index (S&P) 1% 3% Gold Bullion 1% 2% Bitcoin 5% 18% Ethereum 5% 15% Past performance is no guarantee of future results. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility. 24

25 Investors Appear to Be Using HIVE as Proxy for Bitcoin and Ether As volatility stabilizes, a bottom may be near for cryptos 25

26 HIVE Blockchain Technologies: Latest News November 30, 2018: HIVE Increases ASIC Bitcoin Mining Capacity by 100 Petahashes, and Receives Purchase Option for a Further 100 Petahashes from Genesis in 2019 December 21, 2018: HIVE Announces Strategic Partnership with Amber A.I. January 2, 2019: HIVE Receives Regulatory Approval for 50% Increase in ASIC Capacity to Mine Bitcoins. February 11, 2019: HIVE Begins Trading on the OTCQX Best Market Under the Symbol HVBTF 26

27 U.S. Global Investors, Inc. (GROW) Income Statement Financial Analysis Lisa Callicotte CFO 27

Evolution of Mark-to-Market: New Accounting Rule Contributes to Earnings Volatility Starting in fiscal 2019, some of our corporate investments are accounted for differently 1 No longer an

28 Evolution of Mark-to-Market: New Accounting Rule Contributes to Earnings Volatility Starting in fiscal 2019, some of our corporate investments are accounted for differently 1 No longer an available-for-sale ( AFS ) classification for equity securities At adoption, $3.1 million in unrealized gains on former AFS investments was reclassified from other comprehensive income to retained earnings Changes in equity investments fair value will be reported through earnings as investment income (loss), potentially increasing earnings volatility The impact to earnings of this change in the quarter ended December 31, 2018, was an investment loss of $2.8 million This loss related to declines in unrealized gains on securities formerly classified as AFS, previously would have reduced other comprehensive income GAAP Of that amount, $2.7 million related to the decline in market value of our investment in HIVE Blockchain Technologies Ltd. ( HIVE ) Since December 31, 2018, market value of HIVE has increased above our cost 1 USGI adopted ASU Recognition and Measurement of Financial Assets and Financial Liabilities (ASU ), effective July 1,

29 USGI s Investment in HIVE Investments in securities at fair value, non-current 10 million shares 3 percent of outstanding shares Cost $2.4 million Market value $1.9 million as of December 31, 2018 Investments as of December 31,

30 Consolidated Statements of Operations (Unaudited) (dollars in thousands, except per share data) Operating Revenues Quarter Ended December 31, Advisory fees $ 1,756 $ 1,929 Administrative service fees $ 1,799 $ 1,993 Operating Expenses Employee compensation and benefits $ 973 $ 1,140 General and administrative 1, Advertising Depreciation and amortization $ 2,121 $ 2,142 Operating Loss (322) (149) 30

31 Consolidated Statements of Operations (Unaudited) (dollars in thousands, except per share amounts) Quarter Ended December 31, Operating Loss $ (322) $ (149) Other Income (Loss) Investment income (loss) (3,395) 243 Income (loss) from equity method investments (48) 1,218 Other income (3,426) 1,475 Income (Loss) Before Income Taxes (3,748) 1,326 Provision for Income Taxes Tax expense (benefit) (733) 442 Net Income (Loss) (3,015) 884 Less: Net Income Attributable to Non-Controlling Interest Net Income (Loss) Attributable to U.S. Global Investors, Inc. $ (3,211) $ 749 Earnings Per Share Attributable to U.S. Global Investors, Inc. Basic $ (0.21) $ 0.05 Diluted $ (0.21) $ 0.05 Basic weighted average number of common shares outstanding 15,145,702 15,160,589 Diluted weighted average number of common shares outstanding 15,145,702 15,160,589 31

32 Consolidated Balance Sheets (dollars in thousands) Assets Current Assets December 31, 2018 (Unaudited) June 30, 2018 Cash and cash equivalents $ 6,055 $ 6,364 Restricted cash 1,000 1,000 Investments in securities at fair value 8,798 8,179 Accounts and other receivables 377 1,216 Note receivable Prepaid expenses Total Current Assets 16,677 17,122 Net Property and Equipment 1,854 1,970 Other Assets Deferred tax asset, long term 38 - Investments in securities at fair value, non-current 3,592 7,086 Other investments 602 2,207 Equity method investments Note receivable, non-current Other assets, non-current Total Other Assets 4,690 9,840 Total Assets $ 23,221 $ 28,932 32

33 Consolidated Balance Sheets (dollars in thousands) Liabilities Current Liabilities December 31, 2018 (Unaudited) June 30, 2018 Accounts payable $ 224 $ 198 Accrued compensation and related costs Dividends payable Other accrued expenses Total Current Liabilities 1,631 1,773 Long-Term Liabilities Deferred tax liability 60 1,099 Total Long-Term Liabilities 60 1,099 Total Liabilities 1,691 2,872 Commitments and Contingencies (Note 12) 33

34 Consolidated Balance Sheets (dollars in thousands) Shareholders Equity Shareholders Equity December 31, 2018 (Unaudited) June 30, 2018 Common stock (class A) - $0.025 par value; nonvoting; authorized, 28,000,000 shares; issued, 13,866,691 shares at December 31, 2018, and June 30, 2018 Common stock (class B) - $0.025 par value; nonvoting; authorized, 4,500,000 shares; no shares issued Convertible common stock (class C) - $0.025 par value; voting; authorized, 3,500,000 shares; issued, 2,068,857 shares at December 31, 2018, and June 30, Additional paid-in-capital 15,649 15,650 Treasury stock, class A shares at cost; 799,154 and 790,445 shares at December 31, 2018, and June 30, 2018, respectively (1,885) (1,878) Accumulated other comprehensive income (loss), net of tax (258) 1,858 Retained Earnings 7,015 9,513 Total U.S. Global Investors Inc. Shareholders Equity 20,920 25,542 Non-Controlling Interest in Subsidiary Total Shareholders Equity 21,530 26,060 Total Liabilities and Shareholders Equity $ 23,221 $ 28,932 34

35 Significant Events Holly Schoenfeldt Marketing and Public Relations Manager 35

36 Asset Breakdown U.S. Global Investors Funds Data for SEC-registered mutual funds as of December 31,

37 Viral Publicity Gained Through Media Interviews 37

38 Newsletter Recommendations for U.S. Global Investors Funds No-Load Mutual Fund Selections & Timing Newsletter 38

39 Branding and Marketing of GROW 17 TV/Radio/Podcasts 38 Total Interviews 461 Web Mentions 22 Frank Talk Blog Entries 45 Newsletter Recommendations Data from October December

40 Thought Leadership Speaking Engagements and Research Around the World 40

41 Curiosity to Learn and Improve Download the PDF at Download New Gold Report at /gold-fear-trade 41

42 Gold Game Film Continues Success on Kitco News 157 episodes Kitco audience >30 million monthly visitors TheStreet audience 7.8 million monthly visitors 42

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Recognition As an Industry Leader in Investor

the investment management industry The Investment

industry association committed to investor

marketing communications efforts in the mutual

The awards competition is judged by industry

45 Recognition As an Industry Leader in Investor Education 85 STAR Awards, the education awards for the investment management industry The Investment Management Education Alliance (IMEA) is a national industry association committed to investor education, and its STAR Awards program recognizes marketing communications efforts in the mutual fund industry. The awards competition is judged by industry professionals, and based on criteria including educational value, content, design and functionality. 45

46 Our Loyal Subscriber Base Continues To Grow Organically There are over 44,000 subscribers receiving our award-winning content today. FLASH FACTS 46

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48 We Want To Hear From You! Send us a note at info@ following today s webcast and we ll send you a free Enjoy Capitalism t-shirt! 48

49 Q&A 49

50 Disclosures All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Purchasing Manager s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar. Standard deviation is a measure of the dispersion of a set of data from its mean. The more spread apart the data, the higher the deviation. Standard deviation is also known as historical volatility. The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. Cash Flow is a measure of the amount of cash generated by a company s normal business operations. There is no guarantee that the issuers of any securities will declare dividends in the future or that, if declared, will remain at current levels or increase over time. Note that stocks and Treasury bonds differ in investment objectives, costs and expenses, liquidity, safety, guarantees or insurance, fluctuation of principal or return, and tax features. None of U.S. Global Investors Funds held any of the securities mentioned in this presentation as of 12/31/2018. Frank Holmes has been appointed non-executive chairman of the Board of Directors of HIVE Blockchain Technologies. Both Mr. Holmes and U.S. Global Investors own shares of HIVE. Effective 8/31/2018, Frank Holmes serves as the interim executive chairman of HIVE. 50

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