U.S. Global Investors, Inc.

U.S. Global Investors, Inc. is a boutique investment advisory firm based in San Antonio, Texas. The company manages both domestic and offshore funds that specialize in the natural resources and emerging markets sectors. Some of the company's no-load mutual funds include the Global Resources Fund (ticker PSPFX), the World Precious Minerals Fund (UNWPX) and the Gold Shares Fund (USERX).

Before investing in any fund, investors should carefully consider the fund's investment objectives, risks, charges and expenses. This and other important information is available in a fund prospectus, which can be obtained by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). The prospectus should be read carefully before investing. U.S. Global Brokerage, Inc. distributes the funds.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be suitable for all investors. Investing in foreign and emerging markets carries special risks, including currency fluctuation and less public disclosure, as well as economic and political risk.

The S&P/TSX Global Gold Index is an international benchmark that tracks the world's leading gold companies with the goal of providing an investable representative index of publicly-traded international gold companies. The FTSE Gold Mines Index Series includes all gold mining companies that have a sustainable and attributable gold production of at least 300,000 ounces per year, and that derive 75% or more of their revenue from mined gold.

As of June 30, 2007, the following were the holdings as a percentage of net assets: Jiangxi Copper (China Region Opportunity Fund 1.74%); Silvercorp Metals Inc. (World Precious Minerals Fund 2.78%, Global Resources Fund 0.89%, China Region Opportunity Fund 2.42%); Gold Fields Ltd. (Gold Shares Fund 6.05%, World Precious Minerals Fund 2.58%, Global Resources Fund 0.39%); Sino Gold Mining Ltd. (Gold Shares Fund 1.03%, World Precious Minerals Fund 0.58%, China Region Opportunity Fund 0.27%); Anglogold Ashanti (0.0%); Dynasty Gold (0.0%).