SAN ANTONIO—February 1, 2012—U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded net income of $409,382, or 3 cents per share, on revenues of $5.88 million for the quarter ended December 31, 2011.

This compares to net income of $2.33 million, or 15 cents per share, on revenues of $11.91 million for the second quarter of fiscal year 2011. A swing in performance fees was a significant factor that impacted revenue and earnings during the quarter ended December 31, 2011.

Revenues were also impacted by a decline in assets under management. Average assets under management were $2.08 billion for the quarter ended December 31, 2011, a 27.1 percent decrease from the same quarter a year ago. Sequentially, average assets under management decreased 15.4 percent from the previous quarter. Period-end assets under management stood at $1.89 billion as of December 31, 2011, a 37.9 percent decrease from $3.04 billion at December 31, 2010.

“The second half of last year was similar to 2008 as uncertainty surrounding the U.S. debt ceiling and the unraveling of the sovereign debt crisis in Europe spiked,” says Frank Holmes, U.S. Global Investors CEO. “This lack of confidence caused the selling of equities across the board despite roughly half of S&P 500 companies experiencing revenue growth of 10 percent or greater.”

According to the Investment Company Institute (ICI), investors pulled more than $130 billion from equity mutual funds during 2011. This represents the second-largest withdrawal of funds in the past 25 years and is four times the amount withdrawn in 2010. According to USA Today in December, 92 percent of the 8,036 U.S. diversified stock funds tracked by Lipper posted a loss in 2011.

Emerging markets and natural resources-related equities also fell victim to this uncertainty. The leading exchanges in Brazil, Russia, India and China all experienced double-digit declines in 2011. The MSCI Emerging Markets Index decreased 18 percent for the year and the SPDR S&P Global Natural Resources ETF (GNR), which tracks a global basket of commodity-related equities, declined 17 percent.
Gold mining companies also faced pressure with the S&P/TSX Global Gold Index decreasing 16 percent and companies in the exploration and development stage, as measured by the Market Vectors Junior Gold Miners ETF (GDXJ), decreasing nearly 38 percent. The majority of these declines came during the second half of the year.

“Gold bullion fell 10 percent in December alone,” says Holmes. “Moves of this magnitude are rare and have only occurred 7 percent of the time over the past 10 years.”

“This downside volatility in global equity markets has an amplifying effect for U.S. Global because roughly 80 percent of our assets under management are in emerging markets and natural resources-related equities,” says Holmes. “High volatility in these asset classes is normal and expected in our business; however, last year was exceptionally difficult for global investors.”

“We’ve discussed many times in our presentations over the past decade the importance of managing expectations when investing in these asset classes,” says Holmes. “It is a normal event for gold stocks to move plus or minus 38 percent and for emerging market equities to move plus or minus 31 percent over any 12-month period. Moves of this magnitude occur roughly 70 percent of the time.”

“In order to adapt to external volatility, we operate with a low fixed-cost structure that is reflexive to this volatility by keeping salaries low and bonuses tied to fund performance,” says Holmes. “The company also owns its headquarters building and carries zero long-term debt on its balance sheet.”

U.S. Global had net working capital of approximately $32.1 million with no bank or mortgage debt. This dynamic cost structure allowed the company’s expenses to decrease largely in line with assets under management.

The company has continued to pay monthly cash dividends of $0.02 per share, which equated to a yield of 4 percent on an annualized basis at the December 31, 2011, closing price of $6.01 per share.

Market Commentary

“While global markets were challenging last year, we think the worst is over,” says Holmes. “Several indicators are showing improvement, which should propel global markets to bounce back strongly in 2012. Also, our asset levels have rebounded from their lows last quarter.”

“The European Central Bank’s Long-Term Refinancing Operation (LTRO) has given investors the clarity they coveted regarding the eurozone,” says Holmes. “Around the world we are seeing central bankers shift from tightening to policies geared toward growth. For commodities, China is the most important driver, and we believe the easing measures taken by China’s central bank in December show the Chinese government is no longer worried about its economy overheating and is looking to promote growth.”

“We also think the upturn in China’s money supply is significant for commodities as it has added liquidity into the system. After hitting a three-year low in the fall of 2011, money supply in China climbed to record levels during the final month of the year and now exceeds the level seen during the peak of the global crisis in March 2009,” says Holmes.

“Last March, we saw the Global PMI Index dip below the 50 level, which was a turning point for many commodities. Recently, Global PMI has reaccelerated above the 50 level, indicating the global economy is expanding,” says Holmes.

“These factors are drivers for the strong rebound in global markets so far in 2012. While the S&P 500 is up nearly 5 percent for the year as of the end of last week, markets in Brazil (up nearly 19 percent), Russia (up nearly 15 percent), India (nearly 20 percent) and China (up about 5 percent) have all seen strong rebounds in U.S. dollar terms,” says Holmes. “These emerging countries also carry less debt per capita than counterparts in the developed world which is a positive driver for their long-term growth prospects.”

“In addition, the 50-day moving averages for several markets moved above the 200-day average, indicating positive momentum. This should be an especially positive driver for smaller, junior resource companies that were excessively punished in 2011. So far in 2012, the S&P/TSX Venture Index is up nearly 10 percent. We think the stage is set similar to 2009 when these asset classes performed exceptionally well,” says Holmes.

Earnings Webcast Information

The company has scheduled a webcast for 7:30 a.m. Central time on Thursday, February 2, 2012, to discuss the company's key financial results for the quarter. Frank Holmes will be accompanied on the webcast by Susan McGee, president and general counsel, and Catherine Rademacher, chief financial officer. Click here to register or visit www.usfunds.com. The earnings presentation can also be accessed by dialing 1(888) 895-5479. The confirmation number is 31668880. Please dial in at least 5 minutes prior to the start of the call.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

With an average of $2.08 billion in assets under management in the quarter ended December 31, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

Forward-Looking Statements and Disclosure
This news release and other statements by U.S. Global Investors may include certain “forward-looking statements” including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov.

These filings, such as the company’s annual report and Form 10-K, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results may vary. The company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The S&P/TSX Venture Composite Index is a broad market indicator for the Canadian venture capital market. The index is market capitalization weighted and, at its inception, included 531 companies. A quarterly revision process is used to remove companies that comprise less than 0.05% of the weight of the index, and add companies whose weight, when included, will be greater than 0.05% of the index. The S&P/TSX Global Gold Index is an international benchmark tracking the world’s leading gold companies with the intent to provide an investable representative index of publicly-traded international gold companies.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor. There were no clients of U.S. Global Investors which held any of the securities mentioned in this release as of December 31, 2011.

Financial data for the quarter will be released prior to the webcast.

Frank Holmes, CEO and chief investment officer; Susan McGee, president and general counsel; and Catherine Rademacher, chief financial officer, will participate in the webcast.

Click here to register for the earnings webcast or visit www.usfunds.com for more information. The earnings presentation can also be accessed by dialing 1(888) 895-5479. The confirmation number is 31668880. Please dial in at least 5 minutes prior to the start of the call.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

The company’s board of directors approved payment of the 2-cents-per-share monthly dividend for the first calendar quarter of 2012. The record dates are January 10, February 13 and March 12, and the payment dates will be January 24, February 27 and March 26.

At the end of this period, the company will have paid monthly dividends for 58 straight months. At the December 13, 2011, closing price of $6.44, the 2-cents-per-share monthly dividend equals a 3.7 percent yield on an annualized basis.

The continuation of future cash dividends will be determined by U.S. Global’s board of directors, at its sole discretion, after review of the company's financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the company and general business conditions.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

With an average of $2.45 billion in assets under management in the quarter ended September 30, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

The record date was December 8, 2011, and the ex-dividend and payable date is December 9, 2011.

­Shareholders should be aware that the distributions of dividends and/or capital gains have reduced each fund’s net asset value (NAV) by the amount of the distribution. Market activity may also have impacted a fund’s NAV on the ex-dividend date, so the total change in a fund’s NAV may be more or less than its distribution.

Shareholders with automatic reinvestment will receive their distribution in the form of additional shares at the closing prices on December 9, 2011, while others will receive their distribution by check. The distributions do not affect the fund’s total return.

The following is a list of the distributions by fund.

“The negative sentiment and lack of trust in G7 government policymakers’ ability to cut fiscal spending for bloated bureaucracies has overshadowed positive growth in emerging markets,” says Frank Holmes, CEO and chief investment officer at U.S. Global Investors.

“Furthermore, this negative sentiment has generated reactionary fund flows out of most equities despite roughly 50 percent of S&P 1500 companies seeing their revenues climb 10 percent or more,” says Holmes. “We are seeing across-the-board selling of stocks despite many paying out dividends at greater rates than an investor can get from a 10-year Treasury bond.”

“On a positive note, low valuations for gold mining and natural resources companies has spurred a recent flurry of mergers and acquisition activity,” says Holmes. “Many of these deals have been struck at premiums greater than 60 percent, which signals that the smart money has identified these areas as being undervalued.”

Income dividend per share amounts for the World Precious Minerals Fund (UNWPX and UNWIX) and the Global Resources Fund (PSPFX and PIPFX) were affected by federal tax laws that classify certain passive income for international companies (PFIC) as ordinary income for shareholders. The funds target promising junior exploration and development opportunities in both the energy and gold mining sectors, which increases the exposure to some of these tax rules.

Fund distributions are not directly correlated with short-term fund performance. This information is not intended as tax advice. Investors should consult a tax advisor with questions regarding their individual tax liability.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.
With an average of $2.45 billion in assets under management in the quarter ended September 30, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk.

Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors.

Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.

A copy of the presentation is available at www.usfunds.com/presentations.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

SAN ANTONIO–November 3, 2011–U.S. Global Investors, Inc. (NASDAQ: GROW), a boutique registered investment advisory firm specializing in natural resources and emerging markets, recorded net income of $749,518, or 5 cents per share, on revenues of $7.79 million for the quarter ended September 30, 2011.

This compares to net income of $1.27 million, or 8 cents per share, on revenues of $8.92 million for the first quarter of fiscal year 2011. The year-over-year decline in revenue of $1.13 million is primarily attributable to a decrease in unrealized gains (losses) of $1.05 million in trading securities, including funds managed by the company, which impacted the change in earnings by $0.04 per share. This is a reflection of short-term swings in asset prices. Unrealized losses do not impact cash flows until realized or sold. This was slightly offset by a decrease in expenses of approximately $332,000.

Assets under management stood at $2.05 billion as of September 30, 2011, a 21.9 percent decrease from $2.62 billion at September 30, 2010. According to data from the Investment Company Institute (ICI), investors pulled more than $70 billion from equity mutual funds during the quarter. This represents the largest withdrawal of assets over a three-month period since the depths of the financial crisis in fall 2008.

Average assets under management were $2.45 billion for the quarter ended September 30, 2011, relatively flat from the same quarter a year ago. Sequentially, average assets under management decreased 15.0 percent from the previous quarter in response to global markets enduring the worst declines in three years. The MSCI Emerging Markets Index decreased 22 percent during the quarter, and the Morgan Stanley Commodity Related Equity Index, which tracks a basket of commodity-related equities, decreased 24 percent.

“Roughly 80 percent of U.S. Global’s assets under management are in emerging markets and natural resources-related equities,” says Frank Holmes, U.S. Global Investors CEO. “High volatility in these asset classes is normal and expected in our business.”

Historical Swings in Markets

“The massive negative sentiment toward political policies has impacted current asset performance and amplified volatility,” says Holmes.

“Based on the past five years of data, the MSCI Emerging Markets Index has seen 10 percent swings over 20 trading days 17 percent of the time. This is roughly three times the frequency of the S&P 500, which has experienced 10 percent swings over 20 trading days only 6 percent of the time,” says Holmes.

“Ten percent swings are even more common for crude oil and gold equities, which have experienced 10 percent swings 31 percent and 28 percent of the time over the past five years, respectively,” says Holmes. “As a result of the inherent volatility in these key strategies, shares of GROW have experienced 10 percent swings over 20 trading days more than 50 percent of the time over the past 10 years.”

“Although downward volatility was common during the past quarter, the trajectory of these asset classes reversed course during the month of October and it appears a price reversal is under way,” says Holmes.

The MSCI Emerging Markets Index and the Morgan Stanley Commodity Related Equity Index rebounded 13 percent and 16 percent during the month of October, respectively.

Cash at an All-Time High, Provides Shelter from Market Volatility

In order to insulate U.S. Global from this volatility, the company has built a strong capital structure which provides adequate liquidity and allows the company to pursue investment opportunities when they arise. U.S. Global’s cash and cash equivalents totaled $28.1 million as of September 30, 2011, the highest level ever for the company. In addition, U.S. Global had net working capital of approximately $32.5 million and a current ratio (current assets divided by current liabilities) of 8.3-to-1 as of September 30, 2011. The company has carried zero long-term debt on its balance sheet since 2004 and owns its headquarters building.

Dividend Yield Greater than Industry Peers

The company continues to pay monthly cash dividends of $0.02 per share. The monthly dividends equate to a yield of 3.5 percent on an annual basis at the September 30, 2011 closing price of $6.78 per share.

“The dividend yield on GROW shares continues to exceed that of gold mining and emerging market companies, and our industry peers,” says Holmes. “The dividend also requires a higher level of discipline because it is paid monthly while many companies in emerging markets pay quarterly or semi-annually.”

The dividend yields for the MSCI Emerging Markets Index and NYSE Arca Gold Bugs Index (HUI) were 3.2 percent and 0.8 percent, respectively, as of September 30, 2011. The median dividend yield for 14 publicly-traded asset managers was approximately 2.2 percent for the same time period.

Focused Sales and Marketing Strategy

U.S. Global has focused and expanded its national sales strategy to achieve greater traction with registered investment advisers (RIAs), who control an estimated $2 trillion in assets for their clients. This expansion includes increased participation in national sales conferences and additional members to the sales team. The company has adopted a regional sales approach and brought on Tadas Misiunas, a seasoned veteran, to lead these efforts on the East Coast, the largest region in terms of assets.

Market Commentary

“The overlapping challenges of fiscal calamity in the eurozone, a slowdown in China, a downgrade of U.S. debt and anemic global growth amplified investors’ fears during the third quarter and led to a universal selling of investments in all shapes and sizes,” says Holmes.

“There is an emotional disconnect between global emerging economic activity and economic affairs of Europe. Outside Europe, fifty percent of the world’s population is growing and not overloaded with debt,” says Holmes.

“The decline created additional value in the market, triggering a flurry of strategic acquisitions in the energy and gold mining spaces. Junior exploration and development companies in both sectors, which suffered the steepest declines during the third quarter’s carnage, have been snatched up by large-cap companies seeking to purchase the cheapest barrels of oil and ounces of gold they can find. These assets are currently found listed on the stock exchange,” says Holmes.

“These smart money moves by some of the largest companies in the sector crystallize the value in today’s market and confirm the long-term bull cycle for emerging markets and natural resources remains intact. Research from the Nobel laureate Simon Kuznets shows these long cycles have historically lasted 15-20 years, meaning we are still near the middle of the cycle,” says Holmes.

Earnings Webcast Information

The company has scheduled a webcast for 7:30 a.m. Central time on Friday, November 4, 2011, to discuss the company's key financial results for the fiscal year. Frank Holmes will be accompanied on the webcast by Susan McGee, president and general counsel, and Catherine Rademacher, chief financial officer. Click here to register or visit www.usfunds.com.

Selected financial data (unaudited):

	Three months ended
	9/30/2011	9/30/2010
Revenues	$7,791,908	$8,920,741
Expenses	6,629,822	6,961,511
Income before taxes	1,162,086	1,959,230
Tax expense	412,568	693,537
Net income	$749,518	$1,265,693
Earnings per share (basic and diluted)	$0.05	$0.08
Avg. common shares outstanding (basic)	15,425,705	15,364,500
Avg. common shares outstanding (diluted)	15,426,221	15,364,500
Avg. assets under management (billions)	$2.45	$2.45

About U.S. Global Investors, Inc
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

With an average of $2.45 billion in assets under management in the quarter ended September 30, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

Forward-Looking Statements and Disclosure
This news release and other statements by U.S. Global Investors may include certain “forward-looking statements” including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov.

These filings, such as the company’s annual report and Form 10-K, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results. The company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years. The Morgan Stanley Commodity Related Index (CRX) is an equal-dollar weighted index of 20 stocks involved in commodity related industries such as energy, non-ferrous metals, agriculture, and forest products.  The index was developed with a base value of 200 as of March 15, 1996. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.

The company’s board of directors approved payment of the 2-cents-per-share monthly dividend for the fourth calendar quarter of 2011. The record dates are October 10, November 14 and December 12, and the payment dates will be October 24, November 28 and December 27.

The continuation of future cash dividends will be determined by U.S. Global’s board of directors, at its sole discretion, after review of the company’s financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the company and general business conditions.

U.S. Global Investors 10-K for FY 2011 available online

The company has posted its Form 10-K filing for fiscal year 2011 on the company’s website. The 10-K, which covers the fiscal year that ended June 30, 2011, has been filed with the U.S. Securities and Exchange Commission.

The 10-K is available at www.usfunds.com. A printed copy of the filing is also available at no cost upon request. U.S. Global Investors recently released results for 4Q11 and the 2011 fiscal year. Click here to read the results.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

With an average of $2.82 billion in assets under management in the quarter ended June 30, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

# # # # #

For the fiscal year 2011, U.S. Global recorded net income of $7.8 million, or 51 cents per share, on revenues of $41.9 million. This compares to net income of $5.3 million, or 35 cents per share, on revenues of $35.0 million for the 2010 fiscal year. The company earned $1.5 million, or 11 cents per share, on revenues of $9.7 million in the fourth quarter of fiscal year 2011.

Assets under management at period end stood at $2.6 billion as of June 30, 2011, an 8 percent increase from $2.4 billion at June 30, 2010.

Average assets under management were $2.82 billion for the fiscal year ended June 30, 2011, an increase of 10 percent from $2.56 billion for the fiscal year ended June 30, 2010. Sequentially, average assets under management decreased from the previous quarter, in-line with the overall decline in global markets which began in April.

“Excluding the most recent quarter, year-over-year assets under management benefited as the natural resources sector fueled the global recovery over the past year,” says Frank Holmes, U.S. Global Investors CEO. “This strength led to the company’s strong performance and growth in assets under management during the 2011 fiscal year.”

Increase in AUM Drives Growth in Revenues

The increase in revenue is primarily a result of increased assets under management in the natural resources funds, an increase in offshore fund advisory fees and an increase in fund performance fees. Performance fees are received when a fund outperforms its benchmark by five or more percentage points for the previous 12 months.

U.S. Global’s SEC-registered funds experienced an increase of $250.6 million in average assets under management, or 10 percent, during fiscal year 2011. Mutual fund advisory fees are the company’s principal revenue stream, accounting for 63 percent of total revenues for fiscal 2011. Mutual fund advisory fees totaled $26.6 million for fiscal year 2011, an increase of 26 percent from fiscal year 2010 as a result of higher assets under management and increased performance fees. Mutual fund advisory fees increased roughly the same amount during fiscal year 2010 and are now 58.5 percent above fiscal year 2009 levels.

Strong Balance Sheet, Monthly Dividends U.S. Global’s strong capital structure provides adequate liquidity, insulates the company from market volatility and allows the company to pursue investment opportunities when they arise. The company had net working capital of approximately $32.4 million at the end of fiscal year 2011, up 14 percent from fiscal year 2010.

Cash, cash equivalents and investments totaled $37.6 million as of June 30, 2011. In addition, the company has carried zero long-term debt on its balance sheet since 2004 and owns its headquarters building.

In addition, U.S. Global Investors declared monthly cash dividends of $0.02 per share in fiscal 2011, a continuation of the company’s dividend program that was initiated in June 2007. The monthly dividends equate to an annual yield of 3.3 percent on an annual basis at the June 30, 2011 closing price of $7.21 per share.

“The dividend yield on GROW shares at the current price is higher than our industry peers, leading emerging market indices and gold equity indices,” says Holmes. “The dividend also requires a higher level of discipline because it is paid monthly while many companies in emerging markets pay quarterly or semi-annually.”

“In fact, U.S. Global’s dividend yield is currently higher than a 10-year government note. However, unlike the government, we have no debt,” says Holmes.

The dividend yields for the MSCI Emerging Markets Index and NYSE Arca Gold Bugs Index (HUI) were 2.58 percent and 0.70 percent, respectively, as of June 30, 2011. The median dividend for 13 publicly-traded asset managers was approximately 1.9 percent for the same time period.

Market Commentary

“The global economy has shown resilience amidst a tough climate of sovereign debt problems in the developed world and battles with inflation in emerging markets,” says Holmes. “Market volatility will likely remain amplified but investors can use this volatility to their advantage by seeking opportunities in undervalued sectors.”

“There are some great American companies, whose balance sheets are the envy of the Federal Government and are carrying dividend yields higher than a 10-year Treasury bill. Placed into historical context, this is a wonderful time for value investors,” says Holmes.

“Pessimism is so pervasive that investors are indiscriminately selling all equities and buying bonds with low yields. However, more than 700 of America’s 1,500 largest companies have revenue growing at 10 percent or higher while the overall U.S. economy is growing around 1 percent. Investors must adapt and focus on these opportunities,” says Holmes.

“Many people are jumping on the bandwagon to label gold a bubble but it’s flawed logic to view the price of an ounce in isolation. When compared to market metrics of 1980, the last time gold climbed to record highs, gold prices still have room to grow,” says Holmes. “As Ian McAvity of Global Deliberations says compared to U.S. debt, the stock market or GDP, [which] is trading at 17, 12, 11 or 5.5 times their 1980 levels, gold seems cheap at only 2.5 times its 1980 peak.”

“It’s also important for investors to view today’s market in a global context. The world has 7 billion people fueling the global economy,” says Holmes. “Today’s globalized world is quite different from the 1970s when many of the world’s 3 billion people were isolated, non-participants in global commerce. Currently, emerging markets have the long-term policies in place to promote strong economic growth.”

Earnings Webcast Information

The company has scheduled a webcast for 7:30 a.m. Central time on Tuesday, September 6, 2011, to discuss the company’s key financial results for the fiscal year. Frank Holmes, CEO and chief investment officer, will be accompanied on the webcast by Susan McGee, president and general counsel, and Catherine Rademacher, chief financial officer. Click here to register or visit www.usfunds.com.

####
About U.S. Global Investors, Inc.

U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company provides advisory, transfer agency and other services to U.S. Global Investors Funds and other clients.

With an average of $2.82 billion in assets under management in the quarter ended June 30, 2011, U.S. Global Investors manages domestic and offshore funds offering a variety of investment options, from emerging markets to money markets.

Forward-Looking Statements and Disclosure

This news release and other statements by U.S. Global Investors may include certain "forward-looking statements" including statements relating to revenues, expenses and expectations regarding market conditions. You can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “opportunity,” “seeks,” “anticipates” or other comparable words. Such statements involve certain risks and uncertainties and should be read with corporate filings and other important information on the company’s website, www.usfunds.com, or the Securities and Exchange Commission’s website at www.sec.gov.

These filings, such as the company’s annual report and Form 10-K, should be read in conjunction with the other cautionary statements that are included in this release. Future events could differ materially from those anticipated in such statements and there can be no assurance that such statements will prove accurate and actual results. The company undertakes no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

Diversification does not protect an investor from market risks and does not assure a profit. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years.

“Keeping current on market events is essential for global investors these days,” says Frank Holmes, company CEO and Chief Investment Officer. “iPhone, Blackberry and iPad users can now access our insights on gold, natural resources, emerging markets and infrastructure with a swipe of their finger. These new mobile apps allow our shareholders to bring along our award-winning research as they move about the world.”

Download the free apps here

In addition to accessing the weekly Investor Alert newsletter on the go, Blackberry and iPhone users can also catch up on Frank Holmes’ blog “Frank Talk,” join the conversation on our social media channels and browse our latest videos with portfolio managers.

The iPad app is even more interactive with the world U.S. Global invests in. Not only does the app update with the latest Frank Talks, Investor Alerts and videos, but users can also check out slideshows of our research trips around the world, read the latest news, see interviews from Bloomberg TV and other news media, and learn more about the funds.

An app for Android users will be launched later in 2011.

To design and build the lineup of mobile applications, U.S. Global Investors partnered with the creative interactive agency, Sweb Development. Located in San Antonio, Sweb has quickly developed a preeminent position in interactive marketing. The company was named to Entrepreneur Magazine’s “100 Companies to Watch” list in 2010 and has been featured in USA Today, BusinessWeek and TIME.

“Mobile applications are an extension of any company. Latest research shows that internet usage from mobile devices has surpassed that of laptops. To stay current and in reach of their clients, a company must have a mobile strategy. U.S. Global Investors has entered the app space boldly with a valuable offering for everyone,” says Magaly Chocano, CEO of Sweb Development.

To download U.S. Global’s apps to your device, visit http://www.usfunds.com/apps. You can find out more about Sweb Development at its website www.swebdevelopment.com.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a boutique investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company offers financial solutions and provides transfer agency and other services to U.S. Global Investors Funds and other clients.

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“We initiated our dividend program in June 2007, and the end of this month will mark the 48th straight month that U.S. Global Investors has awarded a dividend to our investors,” says Frank Holmes, company CEO and Chief Investment Officer. “Investors often look to us for exposure to emerging markets and natural resources, and the monthly dividends add an extra benefit for investors to own GROW shares.”

“At the current stock prices, the dividend yield is higher than leading emerging market indices and gold equity indices. Further, the dividend is also paid monthly and many companies in emerging markets pay quarterly or semi-annually,” says Holmes.

The monthly dividends equate to an annual yield of 3.4 percent on GROW on an annual basis at current price levels near $7 per share. In comparison, the current yields for the MSCI Emerging Markets Index and the NYSE Arca Gold Bugs Index (HUI) are 2.58 percent and 0.70 percent, respectively.

The company’s board of directors approved payment of the 2-cents-per-share monthly dividend for the third quarter of calendar 2011. The record dates are July 11, August 15 and September 12, and the payment dates will be July 25, August 29 and September 26.

Though the company has no debt, owns its own building and has working capital of approximately $2 per share, the continuation of future cash dividends will be determined by U.S. Global’s board of directors, at its sole discretion, after review of the company’s financial performance and other factors, and is dependent on earnings, operations, capital requirements, general financial condition of the company and general business conditions. 

U.S. Global Investors routinely posts corporate filings and other important information on the company’s website, www.usfunds.com.

About U.S. Global Investors, Inc.
U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company offers financial solutions and provides transfer agency and other services to U.S. Global Investors Funds and other clients.

The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The NYSE Arca Gold BUGS (Basket of Unhedged Gold Stocks) Index (HUI) is a modified equal dollar weighted index of companies involved in gold mining. The HUI Index was designed to provide significant exposure to near term movements in gold prices by including companies that do not hedge their gold production beyond 1.5 years.