Mr. Glen Williams reports

SPROTT PHYSICAL URANIUM TRUST ANNOUNCES FILING OF NEW US$1.5 BILLION PRELIMINARY BASE SHELF PROSPECTUS AND RESULTS OF CONSIDERATION OF STRUCTURAL CHANGES

Sprott Physical Uranium Trust has filed a new $1.5-billion (U.S.) preliminary base shelf prospectus with securities regulatory authorities in each of the provinces and territories of Canada. The trust has also voluntarily withdrawn its final short form base shelf prospectus dated Sept. 7, 2023, concurrently with the filing of the new preliminary base shelf prospectus.

As disclosed in the new preliminary base shelf prospectus, the trust has now completed its previously announced consideration of the introduction of a redemption feature, the implementation of limits on future treasury issuances of new trust units and other measures with the objective of having the trust units trade more consistently with net asset value (NAV). These considerations were, in part, the result of discussions with staff at the Ontario Securities Commission regarding the trust and its physical uranium holdings, as well as feedback from investors regarding the trust and its operations.

Following these considerations, the trust has determined that it will not implement a redemption feature at this time due to changes in market dynamics. Since September, 2023, the trust has traded more closely with its NAV, negating the expected benefit of a redemption feature. Furthermore, after careful analysis, Sprott Asset Management LP (the manager), on behalf of the trust, has determined that the cost and effort to secure the necessary unitholder approval to implement a redemption feature would represent an unwanted distraction for the trust at a time when interest in nuclear energy and uranium is expected to accelerate due to government pledges to expand nuclear energy. In addition, in connection with the final clearance of the trust's new base shelf prospectus, the trust expects to deliver undertakings to Canadian securities regulatory authorities pursuant to which the trust will agree to purchase not more than nine million pounds of uranium in the spot market (meaning purchases for cash with a timeline to delivery of 12 months or less) during any calendar year for the duration of the new base shelf prospectus and to use certain commercially reasonable efforts to appropriately manage its purchases of uranium on the spot market during each annual period. Such undertakings will terminate upon withdrawal or termination of the new base shelf prospectus.

We seek Safe Harbor.