U.U Sprott Physical Uranium Trust

Sprott Asset Management LP (“Sprott Asset Management” or the “Manager”), on behalf of the Sprott Physical Uranium Trust (TSX: U.UN and U.U) (the “Trust”), a closed-ended trust created to invest and hold substantially all of its assets in physical uranium, today announced that the Trust has filed a new US$1.5 billion preliminary base shelf prospectus with securities regulatory authorities in each of the provinces and territories of Canada. The Trust also announced the voluntary withdrawal of its final short form base shelf prospectus dated September 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, 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 are 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 9.0 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.

About Sprott Asset Management and the Trust

Important information about the Trust, including its investment objectives and strategies, applicable management fees, and expenses, can be found on its website at www.sprott.com. Commissions, management fees, or other charges and expenses may be associated with investing in the Trust. The performance of the Trust is not guaranteed, its value changes frequently and past performance is not an indication of future results.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable Canadian securities laws (“forward-looking statements”). Forward-looking statements in this press release include, without limitation, statements regarding the acceleration of interest in nuclear energy and uranium, the final clearance of the Trust’s new base shelf prospectus and the delivery and termination of the undertakings to Canadian securities regulatory authorities. With respect to the forward-looking statements contained in this press release, the Trust has made numerous assumptions regarding, among other things: the uranium and nuclear energy market and the Trust’s ability to obtain final clearance of its new base shelf prospectus. While the Trust considers these assumptions to be reasonable, these assumptions are inherently subject to significant business, economic, competitive, market and social uncertainties and contingencies. Additionally, there are known and unknown risk factors that could cause the Trust's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release. A discussion of risks and uncertainties facing the Trust appears in the Trust’s annual information form for the year ended December 31, 2022, which is available under the Trust’s profile at www.sedarplus.ca. All forward-looking statements herein are qualified in their entirety by this cautionary statement, and the Trust disclaims any obligation to revise or update any such forward-looking statements or to publicly announce the result of any revisions to any of the forward-looking statements contained herein to reflect future results, events or developments, except as required by law or stock exchange rules.

Contact:

Glen WilliamsManaging PartnerInvestor and Institutional Client RelationsDirect: 416-943-4394gwilliams@sprott.com