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Silver, and – More than Precious Webcast May 22, 2019 Featured Speakers

Ed Coyne, Executive Vice President, National Sales – Sprott Asset Management

Ed Coyne joined Sprott in January 2016 and has more than 25 years of investment management and sales experience. Previously, Ed was a Principal and Investment Specialist for 18 years at Royce & Associates, a small-cap value manager located in New York City and the investment adviser to The Royce Funds. Before joining Royce, Ed worked with Zweig Mutual Funds and Neuberger Berman as a Regional Sales Director. Ed earned his Bachelor of Science in Architectural Studies from the University of Missouri. Ed also holds a Series 7 license, administered by Financial Regulatory Authority (FINRA).

Maria Smirnova, Senior Portfolio Manager – Sprott Asset Management

Maria has more than 18 years of investment experience. She first joined Sprott Asset Management LP in 2005 as an research associate supporting the metals and team. Maria currently serves as Portfolio Manager of Sprott Equities Class and Co-Portfolio Manager of Sprott and Precious Minerals Fund. Prior to joining Sprott, Maria served as a Product Development Analyst at Fidelity Investments. Maria holds a Master of Business Administration degree from the Rotman School of Management, University of Toronto, and a Bachelor of Commerce degree from the University of Toronto. Maria has been a CFA® charterholder since 2002.

Shree Kargutkar, Portfolio Manager – Sprott Asset Management

Shree has more than 10 years of investment experience. He began his career at Sprott Asset Management in May 2010. During his time at Sprott, Shree has run both long-only and long-short strategies. Shree specializes in precious metals and investing. He also leverages his expertise in derivatives across various mandates and implements strategies for risk mitigation, income generation and improving upside capture. Shree obtained his MBA from the University of Toronto in 2011. Shree holds a B.A. Hons (Psychology) from York University and is a CFA® charterholder.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 2 Webcast Overview

Sprott Inc. (TSX: SII & OTC: SPOXF) • A global asset manager with US $8B AUM* specializing in precious metals and real assets strategies for over 35 years • A full suite of from physical ownership of gold, silver, platinum and palladium to mining equities and private investments Silver (Ag), Platinum (Pt) and Palladium (Pd) • With gold, the “white” metals complete the quartet of “precious metals”; all are in the periodic of earth elements • Each has a unique set of properties, and individual markets with differing supply/demand dynamics • Silver is more common, but supply stock has fallen; both platinum and palladium deposits are very rare • All three metals are key drivers in new frontiers of industry and • All three metals can play an important role in a diversified investment portfolio

*As of 3/31/19.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 3 Silver

Sprott Physical Silver Trust (PSLV)

Maria Smirnova, Senior Portfolio Manager – Sprott Asset Management

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 4 Silver Demand Sources

Industrial fabrication accounts for 56% of total demand. Looking ahead, we see silver demand for electric vehicles and solar applications as significant areas of growth.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 5 Silver’s Physical Supply/Demand is Tight

Demand for silver in 2018 reached a three-year high, up 3.6% YOY, while supply declined by 2.8%.

(Million ) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SUPPLY Mine Production 717 753 758 792 823 868 894 893 877 856 Central Bank Selling 16 44 12 7 8 Scrap 201 227 261 254 191 167 150 152 154 151 Net Hedging Supply -17 50 12 -47 -35 17 8 -19 2 -3 TOTAL SUPPLY 916 1,075 1,044 1,006 988 1,052 1,052 1,026 1,033 1,004 DEMAND 177 190 191 187 220 227 223 203 205 213 & Bars 80 174 212 161 241 234 294 209 150 181 Silverware 53 52 47 44 59 61 63 52 58 61 Industrial Fabrication 528 634 653 600 605 596 583 566 586 579 PHYSICAL DEMAND 838 1,050 1,104 992 1,124 1,118 1,163 1,030 998 1,034

Physical 78 25 -60 14 -137 -66 -111 -4 34 -29 Surplus/(Deficit) Source: GFMS, Refinitiv April 29, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 6 Photovoltaic Installations Underpin Demand

• Use of silver in solar panels grew to 80 million ounces in 2018 • Projections are for continued PV installation growth: • is the largest installer and capacity growth is expected to be steady • has a country-wide target of 100GW for total PV capacity by 2022 • Europe should benefit from supportive policies • Solar panels are not recyclable at this time

Source: GFMS, Bloomberg NEF, February 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 7 Silver vs. Gold

Silver vs. Gold (1988 – 2019) $2,000 $50 $48 $1,826 $1,800 $45

$1,600 $40 $1,292 $1,400 $35

$1,200 $30

$1,000 $25

$800 $20 $15 $600 $15

$400 $10

$200 $5

$- $- 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Spot Gold ($/oz) Spot Silver ($/oz)

Source: Bloomberg, March 31, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 8 Silver Sentiment at a Bottom

Gold to Silver Ratio (1988 – 2019) 100 85 as of 3/31/19 90

80

70

60 average = 67

50

40

30

20

Source: Bloomberg, March 29, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 9 Silver Company Valuations are at Multi-Year Lows

Consensus Forward Looking Price to Flow Multiples 25x

75th percentile

20x 25th percentile

15x

10x

Consensus Forward (x) P/CF Forward Consensus 5x

0x Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Jul-17 Jul-18 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Source: Bloomberg; RBC Capital Markets, May 3, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 10 Silver Exposure by Company – 2019E Revenue

70%

60% 58% 53% 52% 50% 47% 43% 42% 40% 36%

30% 29% 28% 25% 23% 20% 18% 17% 16% 15% 11% 11% 10% 10% 10%

0%

* Based on 2019 production guidance; ** Reflects FY2020 ending June 30, 2020; *** Reflects 2018 sales

Source: Company reports, RBC Capital Markets estimates.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 11 Precious Metals Performance

In 7 of the past 10 years, palladium has been the star performer among the quarter of precious metals.

Annual Returns – Trailing 10 Years (2009 - 2018)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

118.1% 96.6% 10.1% 9.9% 1.7% 11.3% -10.4% 21.0% 56.3% 18.6% Palladium Palladium Gold Platinum Palladium Palladium Gold Palladium Palladium Palladium

56.8% 83.2% -9.9% 9.0% -11.0% -1.7% -11.7% 14.9% 13.1% -1.6% Platinum Silver Silver Silver Platinum Gold Silver Silver Gold Gold

48.2% 29.5% -18.3% 7.5% -28.0% -11.8% -26.1% 8.6% 6.4% -8.5% Silver Gold Palladium Palladium Gold Platinum Platinum Gold Silver Silver

24.4% 20.8% -20.9% 7.1% -35.8% -19.3% -29.4% 1.2% 3.0% -14.5% Gold Platinum Platinum Gold Silver Silver Palladium Platinum Platinum Platinum

Source: Bloomberg.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 12 Platinum and Palladium

Sprott Physical Platinum and Palladium Trust (SPPP)

Shree Kargutkar, Portfolio Manager – Sprott Asset Management

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 13 Platinum Demand Sources

Platinum is a rare metal with distinctive qualities that make it highly valued across a number of diverse demand segments.

Investment 7%

The is the primary demand Industrial driver. Both platinum and 24% Automotive palladium are key elements 39% in the of catalytic converters which help reduce toxic emissions from automotive exhaust.

Jewelry 30%

Source: Bloomberg; WPIC, May 6, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 14 Platinum Supply vs. Deficit

(‘000 Ounces)

7,000 6,600 6,485 5,940 6,025 6,050 6,107 6,097 6,105 6,108 6,000 5,680 5,846 5,153 5,000

4,000

3,000

2,000

1,000 635 450 176 498 0 -80 -25 -185 -149 -220 -376 -1,000 -558 -730

-2,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Total Platinum Supply Net Surplus/Deficit

Source: Bloomberg; , December 31, 2018.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 15 Palladium Demand Sources

Over the past decade, palladium has replaced platinum as the primary metal used in catalytic converters due to its lower cost.

Jewelry 2%

Industrial Palladium demand has 17% been robust, as environmental concerns ― and Dieselgate ― have prompted a global shift Autocatalysts from diesel to gasoline and 81% hybrid vehicles.

Source: Bloomberg; Johnson Matthey, May 6, 2019.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 16 Palladium Supply vs. Deficit

(‘000 Ounces)

10,000 8,580 8,000 7,310 7,100 7,355 7,360 6,760 6,880 6,485 6,455 6,397 6,114 6,361 6,000

4,000

1,750 2,000 1,185 635 680

0 -120 -29 -460 -311 -530 -787 -2,000 -1,113 -1,756

-4,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total Palladium Supply Net Surplus/Deficit

Source: Bloomberg; Johnson Matthey, December 31, 2018.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 17 A Tale of Two Metals

Palladium vs. Platinum Prices (2000-2018)

Source: Bloomberg. XPT represents platinum; XPD represents palladium.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 18 Palladium ETF Price vs. Units

(US Dollars) (Millions) PALL ETF Last Price Current Shares Outstanding $160 3.5

$126 $140 3

$120 2.5

$100

2 $80

1.5 $60 1.65

$40 1

Source: Bloomberg, PALL US Equity, May 6, 2019.

Sprott Asset Management | 19 Webcast: Silver, Platinum and Palladium Outlook: Silver, Platinum and Palladium

Silver • Physical market is tight

• Macroeconomic picture dictates investor interest

• and institutional investors will return:

 Global economy is weakening

 Global debt levels continue to rise

 The Fed will soon turn to cutting rates and monetary easing

 Fiat debasement is continuing

• The marginal buyer (investors) will drive the price of silver up

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 20 Outlook: Silver, Platinum and Palladium

Platinum

• Supply risk remains elevated in

• Investment demand for platinum is on the rise, driven by ETFs and institutional investors

• Likelihood of platinum substitution for palladium in gasoline-powered cars seems imminent

Palladium

• Demand continues to be robust as a result of strong global auto sales

• Supply remains constrained as miners have been unable to increase palladium production

• The big question remains: Can palladium diversify beyond autos?

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 21 Precious Metals Portfolio Allocation

Sprott Recommends a 5%-10% Allocation to Precious Metals Gold, Silver, Platinum & Palladium

With a traditional 60/40 portfolio, equities1 Adding 10% precious metals to the portfolio, represents 98% of the total portfolio risk. reduces the equity risk contribution from 98% to 83%.

Gold 6% Bonds2 Silver 2% Pt/Pd 2% 40% Equities 1 Equities 50% 60% Bonds 40%

1 International Equities Benchmark: The MSCI ACWI Index is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world.

2 Bonds Benchmark: The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 22 Sprott Physical Trusts

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 23 Q&A/Contact Information

Ed Coyne Executive Vice President, National Sales Sprott Asset Management LP

Royal Bank Plaza, South Tower 200 Bay Street, Suite 2600 Toronto, Ontario M5J 2J1

[email protected]

888.622.1813 [email protected]

Visit sprott.com

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 24 Important Disclosure

This presentation is intended solely for the use of Sprott Asset Management USA Inc. for use with investors and interested parties. Investments, commentary and statements are unique and may not be reflective of investments and commentary in other strategies managed by Sprott Asset Management USA, Inc., Sprott Asset Management LP, Sprott Inc., or any other Sprott entity or affiliate. Opinions expressed in this presentation are those of the presenter and may vary widely from opinions of other Sprott affiliated Portfolio Managers or investment professionals. The intended use of this material is for information purposes only and is not intended to be an offer or solicitation for the sale of any financial product or service or a recommendation or determination that any investment strategy is suitable for a specific investor. Investors should seek financial advice regarding the suitability of any investment strategy based on the objectives of the investor, financial situation, investment horizon, and their particular needs. This information is not intended to provide financial, tax, legal, accounting or other professional advice since such advice always requires consideration of individual circumstances. The investments discussed herein are not insured by the FDIC or any other governmental agency, are subject to risks, including a possible loss of the principal amount invested.

Sprott Physical Bullion Trusts Sprott Asset Management LP is the investment manager to the Sprott Physical Bullion Trusts (the “Trusts”). Important information about the Trusts, including the investment objectives and strategies, purchase options, applicable management fees, and expenses, is contained in the prospectus. Please read the document carefully before investing. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Trusts. The risks associated with investing in a Trust depend on the securities and assets in which the Trust invests, based upon the Trust’s particular objectives. There is no assurance that any Trust will achieve its investment objective, and its net asset value, yield and investment return will fluctuate from time to time with market conditions. There is no guarantee that the full amount of your original investment in a Trust will be returned to you. The Trusts are not insured by any government deposit insurer. Please read a Trust’s prospectus before investing. The information contained herein does not constitute an offer or solicitation to anyone in the or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. The information provided is general in nature and is provided with the understanding that it may not be relied upon as, nor considered to be, the rendering or tax, legal, accounting or professional advice. Readers should consult with their own accountants and/or lawyers for advice on the specific circumstances before taking any action.

Webcast: Silver, Platinum and Palladium Sprott Asset Management | 25