Sprott : Q2 2022 Earnings Conference Call

Sprott Inc. (NYSE/TSX: SII)

2022 Second Quarter Results

August 2, 2022

Contrarian. Innovative. Aligned

Forward-looking Statements

Certain statements in this presentation or the accompanying oral remarks contain forward-looking information and forward-looking statements (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian and U.S. securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the forgoing, this presentation and the accompanying oral remarks contain Forward- Looking Statements pertaining to: (i) the development of new products in all asset management businesses; (ii) ability to meet target return on capital employed, target annual free cash flow, target co-investment rate; (iii) the efficient use of balance sheet to generate superior returns above our cost of capital; (iv) the sufficiency of free cash flow to cover dividends, internal growth initiatives and opportunistic share buybacks; (v) our highly variable and resilient business model allows us to invest through cycles, irrespective of market conditions; (vi) actively building out energy transition strategies to complement core precious metals expertise; and (vii) the declaration, payment and designation of dividends.

Although the Company believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including, without limitation: (i) the impact of increasing competition in each business in which the Company operates will not be material; (ii) quality management will be available; (iii) the effects of regulation and tax laws of governmental agencies will be consistent with the current environment; (iv) the impact of COVID-19; and (v) those assumptions disclosed under the heading "Critical Accounting Estimates, Judgments and Changes in Accounting Policies" in the Company's MD&A for the period ended June 30, 2022. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize, including: (i) difficult market conditions; (ii) poor investment performance; (iii) failure to continue to retain and attract quality staff; (iv) employee errors or misconduct resulting in regulatory sanctions or reputational harm; (v) performance fee fluctuations; (vi) a business segment or another counterparty failing to pay its financial obligation; (vii) failure of the Company to meet its demand for cash or fund obligations as they come due; (viii) changes in the investment management industry; (ix) failure to implement effective information security policies, procedures and capabilities; (x) lack of investment opportunities; (xi) risks related to regulatory compliance; (xii) failure to manage risks appropriately; (xiii) failure to deal appropriately with conflicts of interest; (xiv) competitive pressures; (xv) corporate growth which may be difficult to sustain and may place significant demands on existing administrative, operational and financial resources; (xvi) failure to comply with privacy laws; (xvii) failure to successfully implement succession planning; (xviii) foreign exchange risk relating to the relative value of the U.S. dollar; (xix) litigation risk; (xx) failure to develop effective business resiliency plans; (xxi) failure to obtain or maintain sufficient insurance coverage on favorable economic terms; (xxii) historical financial information being not necessarily indicative of future performance; (xxiii) the market price of common shares of the Company may fluctuate widely and rapidly; (xxiv) risks relating to the Company's investment products; (xxv) risks relating to the Company's proprietary investments; (xxvi) risks relating to the Company's lending business;

1. risks relating to the Company's brokerage business; (xxviii) those risks described under the heading "Risk Factors" in the Company's annual information form dated February 24, 2022; and (xxxxiii) those risks described under the headings "Managing financial risks" and "Managing non-financial risks" in the Company's MD&A for the period ended June 30, 2022. In addition, the payment of dividends is not guaranteed and the amount and timing of any dividends payable by the Company will be at the discretion of the Board of Directors of the Company and will be established on the basis of the Company's earnings, the satisfaction of solvency tests imposed by applicable corporate law for the declaration and payment of dividends, and other relevant factors. The Forward-Looking Statements speak only as of the date hereof, unless otherwise specifically noted, and the Company does not assume any obligation to publicly update any Forward-Looking Statements, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

Key performance indicators and non-IFRS and other financial measures

The Company measures the success of its business using a number of key performance indicators that are not measurements in accordance with IFRS and should not be considered as an alternative to net income (loss) or any other measure of performance under IFRS. Non-IFRS financial measures do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other issuers. Our key performance indicators and non-IFRS and other financial measures used in this document are "net fees", "net commissions", "net compensation", "EBITDA", adjusted EBITDA", "adjusted base EBITDA", "operating margin", "return on capital employed", "free cash flow", and "dividend payout ratio".

For a description of "net fees", "net commissions", "net compensation", "EBITDA", "adjusted EBITDA", "adjusted base EBITDA", "operating margin, and "return on capital employed", see the key performance indicators and non IFRS and other financial measures section of the MD&A, which is incorporated by reference in this document and available on SEDAR at www.sedar.com.

Free cash flow ("FCF") is calculated as adjusted base EBITDA less interest expense and cash taxes approximated using the Company's weighted average expected long-term statutory tax rate. FCF represents the cash generated from the Company's operations after paying operating expenses. Dividend payout ratio is calculated as dividends paid in the applicable period divided by free cash flow during that period and represents the Company's ability to fund its dividend through its operations.

For a reconciliation of "net fees" and "net commissions" see slide 16; for a reconciliation of "net compensation" see slide 17; and for a reconciliation of "EBITDA" "adjusted EBITDA" adjusted base EBITDA" operating margin" and "free cash flow" see slide 18.

Sprott Inc. | 2

Speakers

		Whitney George		Kevin Hibbert
		CEO,		CFO,
		Sprott Inc.		Sprott Inc.

John Ciampaglia,

CEO,

Sprott Asset

Management

Sprott Inc. | 3

Q2 2022 and YTD Highlights

• Strong Q2 operating results despite challenging market conditions
• Continuing to build scale in ETF business

1. Completed acquisition of URNM

1. Launched Sprott ESG Gold Fund1

• 1. Strengthened team with the addition of Steven Schoffstall as Director, ETF Product Management
• Developing new products in all asset management businesses
• Completed CEO transition
• 1. Whitney George named CEO on June 30, 2022

(1) The Sprott ESG Gold Fund launched on August 2, 2022

Sprott Inc. | 4

Historical AUM summary

AUM in billions $
					21.9
					0.7
				0.8	1.6
				1.4	2.7
			0.8	3.3
			1.0
			3.3
		0.6			16.9
	0.6	0.8		15.0
	1.1
	0.4
0.7	0.9		12.2
1.2		6.8
	6.0
3.7
Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2020	Dec. 31, 2021	Jun. 30, 2022

Exchange listed products		Managed equities		Private strategies		Non-core AUM

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