Rick Rule, president and CEO of Sprott U.S. Holdings

FOCUS: Natural resource investments

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MARKET OUTLOOK

2018 should be a good year for resource investors. Commodity prices are picking up, even as the shares are lagging, so we believe a “ catch up” is due. Valuable lessons were learned by investors, and managers in the aftermath of the bull market of the last decade, so corporate performance should improve, in the face of tempered expectations, a great climate for positive surprises. M&A should pick up, but be strategic this time, adding hope. Liquidity and performance to the sector. This market should also feel the effect of 20 years of under investment and mal investment in exploration. The industry needs to refill the development pipeline, so successful exploration efforts will result in early, and gemnerous bids, which will rekindle interest in high quality exploration teams.

TOP INVESTING IDEAS

Ivanhoe Mines (IVN.TO)

Trek Mining (TREK.V)

Emx Royalty Corp (EMX.V)

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND IVN Y Y Y TREK N Y Y EMX N Y Y PAST INVESTING IDEAS: NOVEMBER 11, 2016 Ivanhoe Mines (IVN.TO) Then: $2.41

Now: $4.86

Return: 101.65%

Total return: 101.65% Nevsun Resources (NSU.TO) Then: $4.10

Now: $3.00

Return: -26.82%

Total return: -24.95% Callinex Mines (CNX.V)

Lack luster exploration results that followed great initial results. Still like exploration tracts and management, but need to see exploration back on track to re enter. Then: $0.63

Now: $0.38

Return: -38.88%

Total return: -38.88% Total Return Average: 12.60%

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND IVN Y Y Y NSU N N Y CNX N N Y

WEBSITE: www.sprottglobal.com