Mr. John Ciampaglia of Sprott Asset Management reports

SPROTT PHYSICAL COPPER TRUST PROCEEDS WITH VALUE ADD TRANSACTION

Sprott Inc.'s Sprott Asset Management LP, on behalf of Sprott Physical Copper Trust, says the trust has entered into an arrangement with a specialized trading house to ship suitable copper (COMEX-registered brands) to the United States to capitalize on the current price arbitrage between COMEX and the London Metals Exchange (LME) resulting from the possibility of the U.S. levying tariffs on copper imports. This transaction represents an opportunity for the trust to use a portion of its copper holdings to monetize the differential between COMEX and LME pricing without material risk to the trust.

"This transaction demonstrates our ability to create additional value for our unitholders," said John Ciampaglia, chief executive officer of Sprott Asset Management. "We will continue to explore opportunities to capitalize on geographic price discrepancies as we scale up the fund."

Under the terms of the arrangement, a portion of the trust's copper will be shipped to the U.S. and subsequently replaced by the counterparty at a location of the trust's choosing. The total amount of copper that the trust holds will remain constant and the trust's portion of the profit will be paid in cash. The final economics of the transaction will be determined once the copper arrives in the U.S.

We seek Safe Harbor.