About US Global Investors

U.S. Global Investors Searching for Opportunities, Managing Risk

History is Key to Future Success: Lessons Learned from Investment Cycles

Jeffrey Hirsch, President of the Hirsch Organization Editor-in-Chief Stock Trader’s Almanac Editor Commodity Trader’s Almanac Frank Holmes, CEO and Chief Investment Officer U.S. Global Investors

www.usfunds.com January 2012 1.800.US.FUNDS 11-772 Today’s Presenters

Jeffrey Hirsch Frank Holmes

www.usfunds.com January 2012 11-772 2 About U.S. Global Investors

Publicly traded company, traded on NASDAQ (GROW) Headquartered in San Antonio, TX Boutique investment management firm specializing in commodity-related equity strategies Offers mutual funds focused in gold, precious metals and minerals, global resources, emerging markets and global infrastructure Manages $2.45 billion in average AUM as of September 30, 2011

www.usfunds.com January 2012 11-772 3 Focus on Education

28 MFEA STAR Awards for Excellence in Education

www.usfunds.com January 2012 11-772 4 “Performance and Results Oriented”

Investment leadership results in performance

Winner of 29 Lipper performance awards, certificates and top rankings since 2000

(Four out of 13 U.S. Global Investors Funds received Lipper performance awards from 2005 to 2008, six out of 13 received certificates from 2000 to 2007, and two out of 13 received top rankings from 2009 to 2010.)

www.usfunds.com January 2012 11-772 5 U.S. Global Investors Investment Process

We use a matrix of “top-down” macro models and “bottom-up” micro stock selection models to determine weighting in countries, sectors and individual securities.

We believe government policies are a precursor to change. We monitor and track the fiscal and monetary policies of the world’s largest countries both in terms of economic stature and population.

We focus on historical and socioeconomic cycles, applying both statistical and fundamental models, including “growth at a reasonable price” (GARP), to identify companies with superior growth and value metrics.

www.usfunds.com January 2012 11-772 6 Government Policy Model — Precursor for Change

Ben Bernanke, Chairman President Barack Obama of the Federal Reserve

www.usfunds.com January 2012 11-772 7 U.S. Global Investors Investment Process

We overlay these explicit knowledge models with the tacit knowledge obtained by domestic and global travel for first-hand observation of local and geopolitical conditions, as well as specific companies and projects.

We use a matrix of statistical models to monitor market volatility and money flows, and as a result, we may at times maintain higher than normal cash levels.

www.usfunds.com January 2012 11-772 8 Cycles – Principles of Continuous Revolution

Every cycle — irrespective of degree or significance — contains its own unique rhythm

From daily tides to the solar system, life is governed by the cyclical principle

www.usfunds.com January 2012 11-772 9 45-Years of Research

“Those who study market history are bound to profit from it!”

• Market Cycles Are Undeniable • Not Exact - Basic Framework Of Moves • Use In Conjunction With Other Analysis

• Cycles, Seasonality & Recurring Patterns • Current Trends • Technical Analysis • Fundamentals • Market Internals • Economy • Sentiment • Monetary and Government Policy

• War & Peace and the Markets • Decennial Pattern • 4-Year Presidential Election/Stock Market Cycle • Best Six Months November-April • January Barometer

• 4-Year Presidential Election Stock Market Cycle • Best 3 Months/Best 6 Months – October Seasonal Buy S&P, DJIA, NAS, R2K • January Effect Missing - Small Caps Not Beating • Santa Claus Rally, First 5 Days • January Barometer, December Low Indicator • Long Copper, Oil and Gas: Winter-Summer • Early-Mid January S&P Short – Setting Up Nicely

40000 Dow Jones Industrials 2009-2025

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DJI Up 500% 30000 2009-2025

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20000 Actual DJIA 2009-2011

US Withdraws Inflation 15000 from Afghanistan Levels Off

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Sideways Market Launching Pad While Inflation Rises Super Boom Begins 2017-2018 5000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

12% • 179-Year Saga DJIA Average Annual % Gain (1833-2011)* • Gov’t Manipulates 10% 10.4% Economy • Prime Pump 3rd Year 8%

• Most gains in 6% nd 2 half of term 5.8% • Post & Midterm Bear 4% 4.2% Markets 2% • Dirty Work Early 2.0% 0% Post- Mid-Term Pre-Election Election Election * Based on annual close; Prior to 1886 based on Cowles and other indices; 12 Mixed Stocks, 10 Rails, 2 Industrials 1886-1889; 20 Mixed Stocks, 18 Rails, 2 Industrials 1890-1896; Railroad average 1897 (First industrial average published May 26, 1896)

18% • Since War-Torn 1939 DJIA Average Annual % Gain (1941-2011) Still No Loss For DJIA 15% 16.0% • No Midterm Bottom 1986 & 2006 - Usually Bottom 12% Pickers Paradise 9% • 2009 Post-Election Bottom • Election Years Weaker 6% • Pre-Election Stronger 5.9% 3% 4.7% • Financial Crisis Impact 4.5% 0% Post- Mid-Term Pre-Election Election Election

12 Dow Jones Industrials During Election Years Since 1901

8 All Election Years Since 1901 Party In Power Wins 4 Party In Power Ousted

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–8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Election Year DJIA % Change Since 1900 Year Sitting President DJIA % 1900 McKinley (R) 7.0 Won 1904 T. Roosevelt (R) 41.7 Won T. Roosevelt took office after McKinley death 1912 Taft (R) 7.6 Lost 1916 Wilson (D) – 4.2 Won 1924 Coolidge (R) 26.2 Won Coolidge took office after Harding death 1932 Hoover (R) – 23.1 Lost 1936 F. Roosevelt (D) 24.8 Won 1940 F. Roosevelt (D) – 12.7 Won 1944 F. Roosevelt (D) 12.1 Won 1948 Truman (D) – 2.1 Won Truman took office after FDR death 1956 Eisenhower (R) 2.3 Won 1964 Johnson (D) 14.6 Won Johnson took office after Kennedy death 1972 Nixon (R) 14.6 Won 1976 Ford (R) 17.9 Lost Ford took office after Nixon Resigned 1980 Carter (D) 14.9 Lost 1984 Reagan (R) – 3.7 Won 1992 G. H. W. Bush (R) 4.2 Lost 1996 Clinton (D) 26.0 Won 2004 G. W. Bush (R) 3.1 Won Average % Gain 9.0 % # Up / # Down 14 / 5 Wins 10.7 % Losses 4.3 %

• 2011 Forecast • April/May Top – Right On Target! • 5 Monthly Losses • DJIA +2.7% January May-Sep – After 3 Nasty Losses • October Kills • April +4% Another Bear • Best 6 Months +15.2%

• Reserved Outlook Next 6-8 Years • DJIA Reclaims Waterfall -12,700 Early 2012 • Limited Upside From There • Geopolitical and Macro Economic Risks – Europe Debt, Iran, U.S. Deficits, etc. • Seasonal Patterns Track Closely Again In 2012 • First Half Top DJIA 13,000-13,500 - Summer Weakness • Weak Market Early Reduces Obama’s Chance, But Increase Odds of Stronger Yearend Rally • Average Election Year Gains of 5-10%

Waterfall Declines Since 1950 Waterfall Decline Bear MarketLength DJIA Return to Waterfall Start DJIA End DJIA Months % Change Date Months 25-Jul-57 516.69 22-Oct-57 419.79 3.0 – 18.8% 11-Aug-58 9.8 Slightly longer rebound 24-Aug-60 641.56 25-Oct-60 566.05 2.1 – 11.8% 27-Jan-61 3.1 23-Apr-62 694.61 26-Jun-62 535.76 2.1 – 22.9% 18-Feb-63 7.9 8-Jul-66 894.04 7-Oct-66 744.32 3.0 – 16.7% 27-Apr-67 6.7 9-Apr-70 792.50 26-May-70 631.16 1.6 – 20.4% 30-Nov-70 6.3 8-Sep-71 920.93 23-Nov-71 797.97 2.5 – 13.4% 10-Feb-72 2.6 7-Aug-74 797.56 6-Dec-74 577.60 4.0 – 27.6% 14-Apr-75 4.3 11-Nov-77 845.89 28-Feb-78 742.12 3.6 – 12.3% 15-May-78 2.5 13-Feb-80 903.84 21-Apr-80 759.13 2.3 – 16.0% 14-Jul-80 2.8 7-May-82 869.20 12-Aug-82 776.92 3.2 – 10.6% 20-Aug-82 0.3 Small waterfall, fast rebound * 6-Jan-84 1286.64 22-Feb-84 1134.21 1.6 – 11.8% Sideways for five months from 24-Jul-84 1086.57 29-Jan-85 6.3 waterfall to bear market bottom 2-Oct-87 2640.99 19-Oct-87 1738.74 0.6 – 34.2% 31-Jul-89 21.7 Short/steep waterfall, very long rebound * 17-Jul-90 2999.75 11-Oct-90 2365.10 2.9 – 21.2% 17-Apr-91 6.3 17-Jul-98 9337.97 31-Aug-98 7539.07 1.5 – 19.3% 23-Nov-98 2.8 19-Jul-01 10610.00 21-Sep-01 8235.81 2.1 – 22.4% 11-Mar-02 5.7 22-Aug-02 9053.64 9-Oct-02 7286.27 1.6 – 19.5% 6-Jun-03 8.0 2-Jan-09 9034.69 9-Mar-09 6547.05 2.2 – 27.5% 23-Jul-09 4.5 21-Jul-11 12724.41 3-Oct-11 10655.30 2.5 – 16.3% At press time * * Not in averages. Averages 2.4 – 18.8% 5.3

Copyright © 2000-2012 by Jeffrey A. Hirsch and John Wiley & Sons, Inc. or related 25 companies. All rights reserved. www.stocktradersalmanac.com 15000 Waterfalls Since 1998 14000 Dow Jones Industrials Waterfall Declines 1998-2011 13000

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S&P 500 Performance Following Flat (+3/-3%) Years Since 1930 Prev. Yr January June December Close % Chg Year Close % Chg Close % Chg Close % Chg 1248.29 3.0 2006 1280.08 2.5 1270.20 1.8 1418.30 13.6 46.67 2.6 1957 44.72 –4.2 47.37 1.5 39.99 –14.3 247.08 2.0 1988 257.07 4.0 273.50 10.7 277.72 12.4 167.24 1.4 1985 179.63 7.4 191.85 14.7 211.28 26.3 96.11 1.1 1979 99.93 4.0 102.91 7.1 107.94 12.3 92.15 0.1 1971 95.88 4.0 99.70 8.2 102.09 10.8 15.30 N/C 1948 14.69 –4.0 16.74 9.4 15.20 –0.7 1257.60 –0.003 2012 — — — — — — 15.20 –0.7 1949 15.22 0.1 14.16 –6.8 16.76 10.3 459.27 –1.5 1995 470.42 2.4 544.75 18.6 615.93 34.1 58.11 –3.0 1961 61.78 6.3 64.64 11.2 71.55 23.1 Averages: 2.3 7.6 12.8

Copyright © 2000-2012 by Jeffrey A. Hirsch and John Wiley & Sons, Inc. or related 27 companies. All rights reserved. www.stocktradersalmanac.com 4.2%62-Year Seasonal Pattern 3.6% S&P 500 Monthly % Performance 3.0% January 1950-2011 2.4% 1.7% 1.8% 1.5% 1.5% 1.1% 1.1% 1.2% 0.9% 0.8% 0.6% 0.2% 0.0% – 0.04% – 0.2% – 0.1% – 0.6% – 0.6% – 1.2% JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

8 25-Year Pattern 10-Year Pattern 5-Year Pattern 4

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–8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

8%Average % Change $700,000$10K Invested in DJI A Since 1950 7%in DJIA Since 1950 $600,000 $609,071 6% 7.5% $500,000 5% $400,000 4% $300,000 3% $200,000 2% $100,000 1% 0.4% – $379 $0 0% Best 6 Months Worst 6 Months Best 6 Months Worst 6 Months -$100,000

10% $1,600,000 Average % Change $10K Invested in DJI A in DJIA Since 1950 $1,400,000 Since 1950 8% 9.2% $1,200,000 $1,581,034

6% $1,000,000 $800,000 4% $600,000

2% $400,000 $200,000 0% – 1.1% $0 -2% – $200,000 – $6,383 Best 6 Months Worst 6 Months Best 6 Months Worst 6 Months

• Last 5 Days + First 2 of New Year – S&P 500 % Change Last 5 Days Of Year + 1st 2 S&P Averages 1.5% Since 1950 New Year Santa Rally Year 1994 – 0.1% – 1.5% Flat • If Santa Claus Should Fail to Call 1995 0.2% 34.1% 1996 1.8% 20.3% Bears May Come to Broad & Wall 1997 0.1% 31.0% 1998 4.0% 26.7% • First Signal 1999 1.3% 19.5% 2000 – 4.0% – 10.1% Bear • Watch Other Indicators 2001 5.7% – 13.0% 2002 1.8% – 23.4% – First 5 Days 2003 1.2% 26.4% 2004 2.4% 9.0% – January Barometer 2005 – 1.8% 3.0% Flat 2006 0.4% 13.6% – Breach DJIA December Low in Q1 2007 0.0% 3.5% • (11,766.26 - 12/19/2011) 2008 – 2.5% – 38.5% Bear 2009 7.4% 23.5% – Price & Volume Action & Internals/ 2010 1.4% 12.8% 2011 1.1% – 0.003% 2012 1.9% —

THE FIRST-FIVE-DAYS-IN-JANUARY INDICATOR December January 5-Day Year Close 5th Day Change Change • Early Warning 1987 242.17 257.28 6.2% 2.0% 1988 247.08 243.40 –1.5 12.4 1989 277.72 280.98 1.2 27.3 • Easily Skewed 1990 353.40 353.79 0.1 –6.6 1991 330.22 314.90 –4.6 26.3 1992 417.09 418.10 0.2 4.5 1993 435.71 429.05 –1.5 7.1 • 33 of 39 Ups 1994 466.45 469.90 0.7 –1.5 1995 459.27 460.83 0.3 34.1 1996 615.93 618.46 0.4 20.3 Average Gain 13.6% 1997 740.74 748.41 1.0 31.0 1998 970.43 956.04 –1.5 26.7 1999 1229.23 1275.09 3.7 19.5 • 12 of 23 Downs 2000 1469.25 1441.46 –1.9 –10.1 2001 1320.28 1295.86 –1.8 –13.0 2002 1148.08 1160.71 1.1 –23.4 Average Gain 0.2% 2003 879.82 909.93 3.4 26.4 2004 1111.92 1131.91 1.8 9.0 2005 1211.92 1186.19 –2.1 3.0 2006 1248.29 1290.15 3.4 13.6 • Election 13 of 15 2007 1418.30 1412.11 –0.4 3.5 2008 1468.36 1390.19 –5.3 –38.5 2009 903.25 909.73 0.7 23.5 2010 1115.10 1144.98 2.7 12.8 2011 1257.64 1271.50 1.1 –0.003 Based on S&P 500

• Devised By Yale Hirsch in 1972 • As S&P Goes in January, So Goes Year • Only 7 Major Errors: 88.7%, 8 Flat Errors: 75.8% • Doubters Go Before 20th Amendment • January 2008 was a heck of a Signal • 2009 Down Jan Signaled More Drop • Every Down Jan Since 1950: New or Cont. Bear, 10% Correction or Flat Year, Including 2010 • Elections 11 of 15, 4 of 7 Down Years Wrong

40 December Low – May Peak

35 25-Year Pattern 30 5-Year Pattern

–5 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

• Winter Const Lull • Summer New Model • Economic Indicator • Const Up • China Soft Landing • Feb 11 Top • Oct 11 Low

15 25-Year Pattern 10-Year Pattern 12 5-Year Pattern

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–6 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Seasonality Average % Return Start Finish 15-Year 10-Year 5-Year Dec (M) Jul (B) 13.2% 12.7% 7.3%

• Bottomed Oct 3 with Market • 65 Support • 68.57 Buy Limit Hit 11/17 • Better @ Monthly Pivot & TA

17-Year Pattern 10-Year Pattern 12 5-Year Pattern

–4 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Seasonality Average % Return Start Finish 15-Year 10-Year 5-Year Feb (E) Jun (B) 19.2% 14.4% 18.3%

• Look for Feb Low • 17 Support • Better @ Monthly Pivot & TA • Look to Buy 17-18

Jeffrey A. Hirsch is President of the Hirsch Organization, editor-in-chief of the Stock Trader’s Almanac, co-author of the Commodity Trader’s Almanac, editor of the Hirsch Organization flagship newsletter, the Almanac Investor, consulting editor on the Almanac Investor book series, and author of Super Boom: Why the Dow Will Hit 38,820 and How You Can Profit From It. Over the past 45 years, the Stock Trader's Almanac has established itself as the only investment tool of its kind that helps traders and investors forecast market trends with accuracy and confidence. To learn more about Almanac suite of products, please visit www.stocktradersalmanac.com. The Stock Trader’s Almanac brand is part of John Wiley & Sons, Inc. www.wiley.com.

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www.usfunds.com January 2012 11-772 44 Thank You for Attending Today’s Webcast

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www.usfunds.com January 2012 11-772 45 Disclosures

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Past performance does not guarantee future results.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well aseconomic and political risk. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Although Lipper makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Lipper. Users acknowledge that they have not relied upon any warranty, condition, guarantee, or representation made by Lipper. Any use of the data for analyzing, managing, or trading financial instruments is at the user's own risk. This is not an offer to buy or sell securities.

The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally leaders in their industry. The Nasdaq Composite Index is a capitalization-weighted index of all Nasdaq National Market and SmallCap stocks. The Russell 2000 Index is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000. The Russell 3000 Index consists of the 3,000 largest U.S. companies as determined by total market capitalization. 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 AMEX Oil Index (XOI) is a price weighted index designed to measure the performance of the oil industry through changes in the prices of a cross section of widely-held corporations involved in the exploration, production, and development of petroleum.

www.usfunds.com January 2012 11-772 46 Disclosures

Holdings in the Global Resources Fund as a percentage of net assets as of 12/31/2011: Conoco Phillips 0.00%, Exxon Mobile 0.00%, First Trust Natural Gas 0.00%, Global X Copper Miners 0.00%, Occidental Petroleum Corp. 1.57%, SPDR Energy 0.00%.

A stochastic oscillator is a technical momentum indicator that compares a security’s closing price to its price range over a given time period. The theory behind this indicator is that in an upward-trending market, prices tend to close near their high, and during a downward-trending market, prices tend to close near their low. The Moving Average Convergence Divergence (MACD) is a trend-following momentum indicator that shows the relationship between two moving averages of prices.