Sprott Physical Uranium Trust Fund : Interim Management Report of Fund Performance for the period ended June 30, 2022

Sprott Physical Uranium Trust

June 30, 2022

Interim Management Report of Fund Performance (in U.S. dollars)

Management Discussion of Fund Performance

Investment Objective and Strategies

Sprott Physical Uranium Trust (the "Trust") is a closed-end investment trust established on April 23, 2021 under the laws of the Province of Ontario, Canada and its provisions and features are set out in an amended and restated trust agreement dated as of July 12, 2021. Sprott Asset Management LP (the "Manager") is the manager of the Trust. WMC Energy B.V. is the technical advisor (the "Advisor") to the Manager.

The Trust was created to invest and hold substantially all of its assets in physical uranium. The Trust seeks to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding physical uranium without the inconvenience that is typical of a direct investment in physical uranium. The Trust intends to achieve its objective by investing primarily in long-term holdings of unencumbered, fully allocated, physical uranium and does not speculate with regard to short-term changes in uranium prices.

Recent Developments

On July 19, 2021, the Trust successfully completed the acquisition of common shares of Uranium Participation Corporation ("UPC") and its wholly-owned subsidiary, Uranium Participation Bermuda Limited ("UPBL"), and the right to administer and manage UPC's assets, resulting in the exchange of UPC's common shares for units in the Trust.

The transaction was implemented pursuant to a plan of arrangement (the "Arrangement") under the Business Corporation Act (Ontario), following the satisfaction of customary conditions, including receipt of regulatory and Ontario court approvals, and the approval by the common shareholders of UPC on July 7, 2021. Pursuant to the Arrangement, every two UPC common shares were exchanged for one unit of the newly-formed Trust for a total of 75,210,456 units on July 19, 2021, and UPC became a wholly-owned subsidiary of the Trust. On the same date, all the assets of UPC and ownership of its wholly-owned subsidiary, UPBL, were transferred to the Trust. Pursuant to the Arrangement, Sprott Asset Management LP (the "Manager") made a cash contribution to UPC of $5.3 million. On November 19, 2021, UPC was dissolved. The assets of UPBL were transferred to the Trust on December 20, 2021, and UPBL was subsequently dissolved on January 4, 2022.

On July 19, 2021, the Trust began trading on the Toronto Stock Exchange ("TSX") under the symbols "U.U" and "U.UN".

On September 13, 2021, the Trust entered into an Amended and Restated Sales Agreement with Cantor Fitzgerald Canada Corporation and Virtu ITG Canada Corp. whereby the Trust may, in its sole discretion and subject to its operating and investment restrictions, offer and sell trust units through an "at the market offering" program (the "ATM Program") in transactions on the TSX through a market maker in Canada pursuant to a prospectus supplement to a short form base shelf prospectus filed with the Ontario Securities Commission, as principal regulator, and with each of the securities commissions or similar regulatory authorities in each of the provinces and territories of Canada.

Risks

There has been no changes to the Trust over the financial period that materially affected the risk level of the trust.

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Sprott Physical Uranium Trust

June 30, 2022

Results of Operations

For the six months ended June 30, 2022, unrealized gains on physical uranium oxide amounted to $337.4 million and no realized gains.

During the six months ended June 30, 2022, the Trust issued 67,365,000 units through the ATM Program for gross proceeds of $849.2 million.

The value of the net assets1 of the Trust as at June 30, 2022 was $2,929.3 million or $12.69 per unit, compared to $1,768.7 million or $10.82 per unit as at December 31, 2021. The Trust held 56,819,000 pounds of physical uranium oxide as at June 30, 2022 compared to 41,280,707 pounds of physical uranium oxide as at December 31, 2021. As at June 30, 2022, the spot price of physical uranium oxide was $50.40 per pound compared to a spot price of physical uranium oxide was $42.11 per pound as at December 31, 2021. The Trust returned 17.3% compared to the return on spot uranium oxide of 19.7%, for the six months ended June 30, 2022.

The units of the Trust closed at $10.79 on the TSX on June 30, 2022 compared to closing price $11.01 on the TSX on December 31, 2021. These units are denominated in U.S. dollars on the exchange. During the six months ended June 30, 2022, the Trust's units traded on the TSX at an average discount to net asset value of approximately 2.8%.

The Trust pays its own expenses, which include, but are not limited to, audit, legal, and trustee fees, unitholder reporting expenses, general and administrative fees, filing and listing fees payable to applicable securities regulatory authorities and stock exchanges, storage fees and commission of 1% on the sale and purchase of physical uranium, and any expenses associated with the Independent Review Committee of the Trust. Operating expenses2 for the six months ended June 30, 2022 amounted to $5.0 million, and amounted to 0.38% of average net assets3 during the period on an annualized basis.

There were no changes to the Manager of the Trust, nor were there any material changes to the investment philosophy or process.

Related Party Transactions

The transactions between the Trust and its related parties during the reporting period are outlined below:

Management Fees

The Trust pays the Manager, a monthly management fee equal to 1/12 of 0.35% of the value of the net assets of the Trust (determined in accordance with the Trust's trust agreement), plus any applicable Canadian taxes. The management fee is calculated and accrued daily and payable monthly in arrears on the last day of each month. For the six months ended June 30, 2022, the Trust incurred management fees of $4.6 million (not including applicable Canadian taxes).

Commissions

Pursuant to the management agreement, the Trust pays the Manager a commission of 1% of the gross value of any purchases or sales of physical uranium provided that the Manager shall be responsible for any and all third party brokerage fees, commissions and service charges and other similar fees relating to all such transactions. For the six months ended June 30, 2022, commissions and other services paid to the Manager amounted to $7.8 million.

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Net assets are equal to total assets less total liabilities (or total equity) on the unaudited statements of financial position.

The operating expenses non-GAAP measure is calculated for the year-to-date period to June 30, 2022 as total expenses per the unaudited statement of comprehensive income (loss) less management fees of $4.6 million, commissions of $7.8 million, sales tax of $(0.6) million, and net foreign exchange gains (losses) of $nil.

Average net assets is the average of the daily net asset value of the Trust for the applicable period.

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Sprott Physical Uranium Trust

June 30, 2022

Financial Highlights

The following tables show selected key financial information about the Trust and are intended to help you understand the Trust's financial performance for the periods indicated. All dollar amounts are expressed in U.S. dollars.

The Trust's Net Assets Per Unit1

	For the
	six months ended
	June 30, 2022	For the year ended
	(unaudited)	December 31, 20213
	$	$
Net assets, beginning of period	10.82	-
Increase (decrease) from acquisition of UPC	-	8.38
Increase (decrease) from operations2:
Total revenue	-	-
Total expenses	(0.08)	(0.13)
Realized gains (losses) for the period	-	0.08
Unrealized gains (losses) for the period	1.63	1.32
Total increase (decrease) from operations	1.55	1.27
Net assets, end of period	12.69	10.82

• This information is derived from the Trust's unaudited and audited financial statements.

1. Net assets per unit is calculated based on the actual number of units outstanding at the relevant period end date. The increase/decrease from operations is based on the weighted average number of units outstanding over the period shown. This table is not intended to be a reconciliation of the beginning to ending net assets per unit.
2. The December 31, 2021 information is for the period from July 19, 2021 (inception) to December 31, 2021.

Ratios and Supplemental Data

	For the
	six months ended
	June 30, 2022	For the year ended
	(unaudited)	December 31, 20215
Total net asset value (000's)1	$2,929,262	$1,768,715
Number of Units outstanding1	230,836,400	163,471,400
Management expense ratio2	0.68%	0.96%
Trading expense ratio3	0.59%	1.65%
Portfolio turnover rate4	Nil	3.38%
Net asset value per Unit	$12.69	$10.82
Closing market price - TSX	$10.79	$11.01

1. This information is provided as at the date shown, as applicable.
2. Management expense ratio is based on total expenses (including applicable Canadian taxes and excluding commissions) for the stated period and is expressed as an annualized percentage of average daily net asset value during the period.
3. The trading expense ratio represents total commissions and is expressed as an annualized percentage of average daily net asset value during the period shown.
4. The Trust's portfolio turnover rate indicates how actively the Trust's portfolio adviser trades its portfolio investments. A portfolio turnover rate of 100% is equivalent to the Trust buying and selling all of the securities in its portfolio once in the course of the period. The higher the Trust's portfolio turnover rate in a period, the greater the trading costs payable by the Trust in the period, and the greater the chance of an investor receiving taxable capital gains in the period. There is not necessarily a relationship between a high turnover rate and the performance of the Trust.
5. The December 31, 2021 information is for the period from July 19, 2021 (inception) to December 31, 2021.

Past Performance

The indicated rates of return are the historical total returns including changes in unit values and assume reinvestment of all distributions in additional units of the Trust. These returns do not take into account sales, distribution or optional charges or income taxes payable by any unitholder that may reduce returns. Please note that past performance is not indicative of future performance. All rates of returns are calculated based on the net asset value of the units of the Trust.

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Sprott Physical Uranium Trust

June 30, 2022

Year-by-Year Returns

The bar chart below indicates the performance of the Trust units for periods shown. The chart shows, in percentage terms, how much an investment made on the first day of each period would have increased or decreased by the last day of each period.

35.00%

30.00%29.1%1

Return (%)

25.00%

20.00%

15.00%

10.00%

5.00%

17.3%2

0.00%	2022
2021

1. For the period from July 19, 2021 (inception) to December 31, 2021.
2. For the 6 months ended June 30, 2022.

Summary of Investment Portfolio

The following Top Holdings table shows the 25 largest positions (or all positions if the total number of positions is less than

1. held by the Trust as at June 30, 2022 based on the fair value of the position, expressed as a percentage of the Trust's net asset value.

PORTFOLIO ALLOCATION
	% of
	Net Asset
Asset Class	Value
Uranium	97.8
Cash	7.7
Other assets, less liabilities	(5.5)

	TOP HOLDINGS
	% of
	Net Asset
Position	Value
Physical uranium oxide	97.8
Cash	7.7
Other assets, less liabilities	(5.5)
Total	100.0

Total Net Asset Value (000's)

$2,929,262

The summary of investment portfolio may change due to the ongoing portfolio transactions of the Trust.

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