U S GLOBAL INVESTORS INC

Evaluation of Disclosure Controls and Procedures. Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is: (1) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms; and (2) accumulated and communicated to management, including the principal executive and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. An evaluation was conducted under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of June 30, 2026. Based on that evaluation, and because of the material weakness in internal control over financial reporting described below, the CEO and CFO concluded that the Company’s disclosure controls and procedures were not effective as of June 30, 2026.

Management’s Report on Internal Control over Financial Reporting. The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting as defined by Rules 13a-15(f) and 15d-15(f) under the Exchange Act. The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of its internal control over financial reporting as of June 30, 2026. In making this assessment, the Company’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013). Based on the Company’s assessment, and because of the material weakness described below, management concluded that the Company did not maintain effective internal control over financial reporting as of June 30, 2026.

***Material weakness over financial reporting review controls.***Management identified a material weakness in internal control over financial reporting related to deficiencies in the design and operation of review controls over financial reporting workpapers, including the calculation of weighted-average shares used in computing basic and diluted earnings per share. The deficiency reflects that certain review controls were designed and documented at a high level and did not specify the procedures, scope, precision, or evidence necessary to consistently detect completeness errors, spreadsheet formula omissions, or other errors that could result in a material misstatement. The identified error originated in a spreadsheet-based weighted-average shares workpaper. However, the applicable control environment did not include sufficiently precise review procedures, independent recalculation, or spreadsheet integrity checks to prevent or detect the error on a timely basis. Accordingly, management concluded that the deficiency represents a material weakness as of June 30, 2026.

Management has begun evaluating remediation actions intended to strengthen review-control precision and spreadsheet controls across key financial reporting workpapers. Actions include implementing independent recalculation or re-performance procedures for high-risk calculations, adding spreadsheet integrity and completeness checks, and testing the design and operating effectiveness of enhanced controls over a sufficient period. As of the date of this report, the remediation plan had not been submitted to the Board of Directors for approval. The material weakness will not be considered remediated until the enhanced controls have been designed, implemented, and operated effectively for a sufficient period, and management has concluded, through testing, that the controls are operating effectively.

Changes in Internal Control over Financial Reporting. Other than the ongoing evaluation of remediation actions for the material weakness over financial reporting review controls described above, there have not been any changes in the Company’s internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)) during the fourth quarter ended June 30, 2026, that have materially affected or are reasonably likely to materially affect the Company’s internal control over financial reporting.

Inherent Limitation of the Effectiveness of Internal Control. A control system, no matter how well conceived, implemented and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Limitations inherent in any control system include the following:

Because of such inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company or any division of a company have been detected.