DEAR FELLOW SHAREHOLDERS,

The Sprott Focus Trust had a productive 2017 first half, posting an NAV advance of 6.45%, as well as a share-price increase of 9.12% (including dividends). While Focus Trust’s NAV-return modestly trailed the 8.93% total-return of the Russell 3000, we achieved our investment objective of generating solid absolute returns. Focus Trust’s one-, three-, and five-year NAV returns of 18.07%, 1.67% and 9.60% have lagged the Russell 3000’s respective returns of 18.51%, 9.10% and 14.58%. Nonetheless, Focus Trust’s one-year returns support our contention that our value discipline of investing in quality businesses is likely to regain relative traction as the era of central bank interest rate suppression draws to a close. We are optimistic that Focus Trust’s performance patterns are likely to return to those experienced prior to 2011, in turn helping narrow the discount of share-price-to-NAV. Along these lines, we are pleased to report that the Focus Trust discount-to-NAV has narrowed during the past year, from 14.40% on 6/30/16, to 12.70% on 1/31/17 to 11.84% on 6/30/17.

During the first two months of 2017, equity markets were energized by high expectations for President Trump’s campaign platforms (tax cuts, health-care reform, infrastructure spending and reduced regulation). This optimism began to fade by late-February, as the realities of complex political logistics asserted themselves. Now some six months into the new administration, investors are confronted with an even more divisive government (if this were possible) and rapidly fading hopes for any significant growth-oriented legislation. While market averages continued to advance, the drivers of these gains have reversed back to a handful of the largest, most heavily index-weighted companies. Additionally, we have witnessed the return of a growth-at-any-price (GAAP) investor preference, which strongly favors the FANG companies (Facebook, Amazon, Netflix and Google).

Another important feature of 2017’s first half was the Federal Reserve’s decision to raise short-term interest rates twice, with strong inferences of more to come. This seems like welcome news to us, in the sense that the Fed sees sufficient progress from the financial crisis to begin to normalize rate structures. However, we remain somewhat skeptical that economic fundamentals currently support significant additional tightening. So far this year, the “soft” economic data (surveys and sentiment measures) have yet to be verified by “hard” data (actual economic statistics), and many recent trends appear to be moving in the wrong direction. Having witnessed unforeseen market turbulence from portfolio insurance in 1987, the demise of Long-term Capital Management in 1998 and the freezing of derivatives-markets in 2008, it would not surprise us to wake up one morning to

a taper-tantrum-type market correction, with unexpected volatility fueled by computer-driven trading amid a myriad of relatively untested investment innovations (ETF’s, HFT’s, risk-parity funds, etc.).

Finally, despite decidedly more-hawkish commentary from global central bankers, amid global inflation rates generally below target, gold still achieved a 7.74% first-half gain. While this advance pales in comparison to the performance and explosion of interest in bitcoin and other cryptocurrencies (now over 1000 different cryptos and counting), it does confirm the continued slow-but-steady migration of global investment capital away from fiat money. Sprott’s gold strategist, Trey Reik, has written an informative article on digital currencies which we would be happy to share. In short, it appears that a younger generation of investors has embraced bitcoin as a method to park some investment capital outside the traditional financial system. While near-term enthusiasm for these emerging non-fiat currencies may have gotten ahead of itself (the total size of the cryptocurrency market has quadrupled during the past six months), it is interesting to note that the desire to protect wealth from the whims of central bankers is apparently shared even by millennials! We continue to believe that gold’s 5000-year pedigree as reliable store of value and productive portfolio-diversifying asset will remain compelling over the long-term, and we therefore remain enthusiastic about our positions in gold and silver equities.

Positioning

As of June 30, 2017, Focus Trust owned 45 securities and held a cash position of 8.83%. This number of investments is about average for the Fund over its history. The cash position is slightly elevated (and up about 1% from year-end), reflective of diminished opportunities in a rising market. Our largest sector-weighting remains Materials (16.8%), closely followed by Information Technology (15.6%) and Financials (14.9%). With respect to Financials, we are heavily exposed to active asset-managers, but still own no banks due to our fundamental objection to excessive leverage. Finding value in the health care sector is challenging for us, so our weighting in this sector is small (1.6%). Values in the retail sector appear abundant, but there are many compelling reasons these companies may be value traps. In our estimation, overall consumer health is still challenged, so our 13.6% weight in Consumer Discretionary reflects a compromise between interesting values and difficult fundamentals. Finally, our investment in Industrials (1.9%) is near historic lows. The early enthusiasm for a “Trump bump” drove industrial stock valuations to prices we found challenging, and we currently await more attractive entry points.

Our top ten portfolio positions, as shown in Figure 1, remained consistent throughout 2017, with the exception of MKS Instruments, which was pared back due to exceptionally strong performance. Pason Systems, a unique energy service company, with best in class technology solutions and dominant North American market share, has matriculated to our top-ten list.

Top 10 Positions

(% of Net Assets)

Portfolio Sector Breakdown

(% of Net Assets)

(Figure 1)

Activity

During the first half of 2017, the five largest positive contributions to Focus Trust performance were Apple, Sanderson Farms, MKS Instruments, Western Digital, and Franklin Resources. Apple has now joined the FANG stocks as a fifth large cap consumer/tech market leader in a growth starved (passively driven) market environment. Apple’s massive market weighting will likely reinforce its sponsorship until this passive-investment era winds down. To us, Apple’s valuation metrics are far more compelling than its FANG brethren. Even so, we pruned our Apple position as a result of its 25.20% first-half price increase. We also trimmed our Sanderson Farms position after a 22.87% price increase. Finally, we reduced our position in MKS Instruments, which approached our full valuation target in the first half due to strong global demand for semi-conductor capital equipment and the shares of companies in that industry.

One example of how our various valuation disciplines interact has been the impressive 31.89% first-half performance by Western

Digital. As we discussed this past year, we have been excited about this memory storage company’s prospects for some time, but we have not increased our position into prior price declines due to a balance sheet that had become levered beyond our comfort level (as a result of successful, yet aggressive, acquisitions). Despite our hesitation to average into price declines, we are quite pleased to have maintained our Western Digital position at its prior share count, and we look forward to continuing contributions from Western Digital to total portfolio performance. Rounding out our top five 2017 winners was long-time favorite Franklin Resources (up 14.22%). We remain committed to this well-run, diversified, active manager and expect the market to rerate Franklin positively due to both improving investment flows and positive fund performance.

Most of our negative portfolio performers during first-half 2017 were energy companies. Helmerich & Payne (down 28.71%), Unit Corporation (down 31.5%) and Birchcliff Energy, a fairly new position (down 32.40%) combined to negatively impact performance by 1.85%. During the first-half 2017 pullback in energy prices (and resultant declines in shares of energy companies), we added to our positions in Helmerich & Payne and Birchcliff Energy, as well as others in the sector. However, we did elect to liquidate our long-held position in Unit Corporation, due to balance sheet leverage caused by several years of asset-impairment write-downs. We were actually pleased to have had the opportunity to replenish some of the energy positions that we had trimmed during strength in the sector during 2016.

Rounding out the top five portfolio detractors were Gamestop Corporation and a relatively new position, Syntel. Gamestop continues to be a bargain in our view, and, with a 6.94% dividend yield, we are being paid for our patience. Gamestop shares declined 11.65% during the first half, costing us 0.49% of total portfolio performance. Syntel, a well-managed technology-outsource company, with which I have had a long and successful investment history, declined 14.30% during the first half. Syntel’s impact on Focus Trust total portfolio performance was relatively modest, however, at a decline of 0.37%, because we built our positon into the price decline. In aggregate, our top five winners earned us 4.66% and five biggest losers cost us 2.71%.

(Figure 2)

Examining our year-to-date performance by sector, Information Technology, Materials, and Financials were our best, contributing

3.36%, 2.65% and 1.62% respectively. Negative sector contributions were limited to Energy (-2.34%) and Consumer Discretionary (-0.51%). Focus Trust’s portfolio turned over 15.75% during the first six months of 2017, consistent with both our long-term average, as well as our three-to-five-year investment horizon.

Fund Details

Portfolio Diagnostics

(Figure 3)

Outlook

Despite the fact that equity markets are now in the ninth year of a bull market, we remain quite optimistic about the outlook for Sprott Focus Trust. Clearly most equity market valuation metrics are elevated by historical standards. But when one considers current interest, inflation and tax rates, we do not believe equity valuations are extreme. By our calculations, the businesses we own are priced at an upside/downside ratio of 2:1. We own a collection of companies that are well-above-average quality, yet still trade at well-below-market-average valuation. Further, broad measures of market volatility tend to obscure the fact that daily movement of individual stocks can often exceed 20%, creating individual opportunities on a continuous basis. Other than in a few themes such as cryptocurrencies, we do not perceive the type of unhinged market euphoria generally associated with market tops. Additionally, the competition to uncover investment opportunities through fundamental analysis has been withering under the momentum of passive investing in recent years, permitting increased advantage for those willing to “do the work.” Corporate credit conditions remain quite constructive, and persistently low rates have facilitated debt extensions and relaxing of covenants. It is worth noting that corrections can (and will) occur at any time, but our experience suggests real recessions and bear markets have historically been credit events.

We acknowledge that many prominent news headlines have become somewhat inconsistent with a positive investment outlook. However, markets prefer certainty and it has become increasingly clear that few changes will be emanating from Washington. Other than U.S. dollar-pressure caused by an endless barrage of Presidential tweets, we believe markets are beginning to recognize that current U.S. leadership is producing little of substance for markets to digest. We are not suggesting that markets are free from potential setbacks. As we have mentioned, we are cognizant of a host of potential challenges, ranging from the almanac-type tendency for markets to correct during the seventh and eighth years of every decade, to the host of relatively untested investment products so popular in recent years. Therefore, we will retain some dry powder to preserve our flexibility to react prudently to future market disruptions.

In summary, as bottom-up stock pickers, our qualifications for forecasting the direction of broad equity averages are limited. While there are always macro challenges to worry about, we believe factors which directly affect our relative performance have improved in recent periods. A return to a free-market-based discounting process, with less interest-rate suppression, is likely to continue to favor our business-valuation discipline. Further, a weaker dollar will benefit our hard-asset exposure. Whether we are heading into the final phase of a long bull market with related euphoria, or a market pullback sparked by political or monetary misstep, we believe we have an appropriate plan, as well as the discipline to execute that plan. We are quite optimistic that we have the experience to deliver strong absolute returns.

On a final note, our Board of Directors is pleased to propose a new additional independent director for your consideration. Peyton Muldoon was introduced to us by Barbara Keady, who has known Peyton since their days together at Columbia Business School, one of the cradles of value investing. Peyton’s career has included client service and portfolio management at venerable firms such as Weiss, Peck & Greer and Brown Brothers Harriman, as well as entrepreneurial organizations such as Vantis Capital and Horizon Asset Management. She brings deep experience in understanding investor needs and is very familiar with value investing. We know she will represent shareholders well, and we hope you agree.

As always, please feel free to contact me directly with any questions or comments at 203.656.2430, or wgeorge@sprottusa.com. Many thanks for your continued support.

Sincerely,

W. Whitney George

The views expressed above reflect those of Mr. George only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Sprott Asset Management USA Inc. or any other person in the Sprott organization. Any such views are subject to change at any time based upon market or other conditions and Sprott disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for the Sprott Focus Trust are based on numerous factors, may not be relied on as an indication of trading intent on behalf of the Sprott Focus Trust.

Average Annual Total Return (%) Through 6/30/17

Relative Returns: Monthly Rolling Average Annual Return Periods, Since Inception¹

On a monthly rolling basis, the Fund outperformed the Russell 3000 in 74% of all 10-year periods; 67% of all 5-year periods; 57% of all 3-year periods; and 57% of all 1-year periods.

Market Price Performance History Since Inception (11/1/96)

Cumulative Performance of Investment

Calendar Year Total Returns (%)

Why should I reinvest my distributions?

By reinvesting distributions, a stockholder can maintain an undiluted investment in the Fund. The regular reinvestment of distributions has a significant impact on stockholder returns. In contrast, the stockholder who takes distributions in cash is penalized when shares are issued below net asset value to other stockholders.

How does the reinvestment of distributions from the Fund work?

The Fund automatically issues shares in payment of distributions unless you indicate otherwise. The shares are generally issued at the lower of the market price or net asset value on the valuation date.

How does this apply to registered stockholders?

If your shares are registered directly with the Fund, your distributions are automatically reinvested unless you have otherwise instructed the Fund’s transfer agent, Computershare, in writing, in which case you will receive your distribution in cash. A registered stockholder also may have the option to receive the distribution in the form of a stock certificate.

What if my shares are held by a brokerage firm or a bank?

If your shares are held by a brokerage firm, bank, or other intermediary as the stockholder of record, you should contact your brokerage firm or bank to be certain that it is automatically reinvesting distributions on your behalf. If they are unable to reinvest distributions on behalf, you should have your shares registered in your name in order to participate.

What other features are available for registered stockholders?

The Distribution Reinvestment and Cash Purchase Plan also allows registered stockholders to make optional cash purchases of shares of the Fund’s common stock directly through Computershare on a monthly basis, and to deposit certificates representing your FUND shares with Computershare for safekeeping. Plan participants are subject to a $0.75 service fee for each voluntary cash purchase under the Plans. The Fund’s investment adviser is absorbing all commissions on optional cash purchases under the Plans through December 31, 2017.

How does the Plan work for registered stockholders?

Computershare maintains the accounts for registered stockholders in the Plan and sends written confirmation of all transactions in the account. Shares in the account of each participant will be held by Computershare in non-certificated form in the name of the participant, and each participant will be able to vote those shares at a stockholder meeting or by proxy. A participant may also send stock certificates for FUND held by them to Computershare to be held in non-certificated form. There is no service fee charged to participants for reinvesting distributions. If a participant elects to sell shares from a Plan account, Computershare will deduct a $2.50 service fee from the sale transaction. The Fund’s investment adviser is absorbing all commissions on optional sales under the Plan through December 31, 2017. If a nominee is the registered owner of your shares, the nominee will maintain the accounts on your behalf.

How can I get more information on the Plan?

You can call an Investor Services Representative at (203) 656-2430 or you can request a copy of the Plan for your Fund from Computershare. All correspondence (including notifications) should be directed to: Sprott Focus Trust Distribution Reinvestment and Cash Purchase Plan, c/o Computershare, PO Box 30170, College Station, TX 77842-3170, telephone (800) 426-5523 (from 9:00 A.M. to 5:00 P.M.).

W. Whitney George, Director¹, Senior Portfolio Manager

Age: 59  |  Number of Funds Overseen: 1  |  Tenure: Director since 2013; Term expires 2018  |  Other Directorships: None

Principal Occupation(s) During Past Five Years: Senior Portfolio Manager of Sprott Asset Management USA Inc. a registered investment adviser since March 2015; Executive Vice President of Sprott Inc. since 2016. Prior thereto, Managing Director and Vice President of Royce & Associates, LLC, having been employed by Royce since October 1991.

Michael W. Clark, Director

Age: 57  |  Number of Funds Overseen: 1  |  Tenure: Director since 2015; Term expires 2016  |  Other Directorships: None

Principal Occupation(s) During Past Five Years: President, Chief Operating Officer, Chief Risk Officer, Head of Executive Committee, and member of Board of Directors of Chilton Investment Company since 2005.

Barbara Connolly Keady, Director

Age: 55  |  Number of Funds Overseen: 1  |  Tenure: Director since 2015; Term expires 2017  |  Other Directorships: None

Principal Occupation(s) During Past Five Years: Director of New Business Development at Ceres Partners since 2010.

Peyton T. Muldoon, Trustee*

Age: 48  |  Number of Funds Overseen: 1  |  Tenure:

Director since 2017; Term expires 2017  |  Other

Directorships: None

Principal Occupation(s) During Past 5 Years: Licensed salesperson, Sotheby’s International Realty, a global real estate brokerage firm (since 2011).

James R. Pierce, Jr., Director

Age: 60  |  Number of Funds Overseen: 1  |  Tenure: Director since 2015; Term expires 2018  |  Other Directorships: None

Principal Occupation(s) During Past Five Years: Chairman of JLT Specialty Insurance Services, Inc. since September, 2014. Global Lead in Marine and Energy Operations at Marsh from 2006 to 2014.

Thomas W. Ulrich, President*, Secretary, Chief Compliance Officer

Age: 53  |  Tenure: Since 2015

Principal Occupation(s) During Past Five Years: Chief Compliance Officer of the Fund (since March, 2015); In-House Counsel and Chief Compliance Officer of Sprott Asset Management USA Inc. (since October, 2012); In-House Counsel and Chief Compliance Officer of Sprott Global Resource Investments Ltd. (since October, 2012); Chief Compliance Officer, Altegris Advisors, L.L.C. (from July, 2011 to October, 2012); Principal, General Counsel and Chief Compliance Officer of Geneva Advisors (March, 2005 to July, 2011).

Varinder Bhathal, Treasurer*

Age: 46  |  Tenure: since 2017  |  Other Directorships: None

Principal Occupation(s) During Past 5 Years: Treasurer of the Fund (since 2017); Sprott Asset Management Inc. (since 2007 and Controller and Vice President, Finance since 2015); Chief Financial Officer of Sprott Private Wealth LP (since 2016).

Board Approval of Investment Advisory and Subadvisory Agreements for Sprott Focus Trust, Inc.

The Board of Directors (the “Board”) of Sprott Focus Trust, Inc. (the “Fund”) met in person at a regularly scheduled meeting on June 9, 2017, in Watch Hill, Rhode Island, for purposes of, among other things, considering whether it would be in the best interests of the Fund and its stockholders for the Board to approve the existing Investment Advisory Agreement by and between the Fund and Sprott Asset Management L.P. and the existing Investment Subadvisory Agreement by and among the Fund, Sprott Asset Management L.P., and Sprott Asset Management USA Inc. (the “Subadvisory Agreement” and, together with the Investment Advisory Agreement, the “Agreements”).

In connection with the Board’s review of the Agreements, the directors who were not “interested persons” of the Fund within the meaning of the Investment Company Act of 1940 (collectively, the “Independent Directors”) requested, and Sprott Asset Management L.P. (“Sprott Asset”) and Sprott Asset Management USA Inc. (“Sprott USA” and, together with Sprott Asset, the “Advisers”) provided the Board with, information about a variety of matters, including, without limitation, the following information:

In connection with the Board’s review of the Agreements, the Independent Directors considered the matters set forth above along with the following information:

At the June 9, 2017 meeting, the Board and the Independent Directors determined that the Agreements continue to be in the best interests of the Fund in light of the services, personnel, expenses and such other matters as the Board considered to be relevant in the exercise of its reasonable business judgment and approved them.

To reach this determination, the Board considered its duties under the Investment Company Act of 1940 (the “1940 Act”) as well as under the general principles of state law in reviewing and approving advisory contracts; the requirements of the 1940 Act in such matters; the fiduciary duty of investment advisers with respect to advisory agreements and the receipt of investment advisory compensation; the standards used by courts in determining whether investment company boards have fulfilled their duties; and the factors to be considered by the Board in voting on such agreements. To assist the Board in its evaluation of each of the Agreements, the Independent Directors received materials in advance of the Board meeting from the Advisers. The Independent Directors also met with Mr. George. The Board applied its business judgment to determine whether the arrangements by and among the Fund, Sprott Asset and Sprott USA are reasonable business arrangements from the Fund’s perspective as well as from the perspective of its stockholders.

Nature, Extent and Quality of Services Provided by Sprott Asset and Sprott USA

The Board considered the following factors to be of fundamental importance to its consideration of whether to approve the Agreements: (i) Mr. George’s long tenure as the portfolio manager of the Fund; (ii) Mr. George’s 34 years of value investing experience and related track record; (iii) background information on the qualifications and experience of the Advisers’ senior management and the key professional personnel that provide services to the Fund; (iv) the Advisers’ experience in managing pooled investment vehicles and accounts and its related organizational capabilities; and (v) the financial soundness of Sprott Inc., each Adviser’s ultimate parent company, including the cash infusion into the company after the proposed sale of one of its business units. The Board noted and took into account a recent sale of a non-U.S. business unit by the parent company of the Advisers, including certain proposed personnel changes.

Investment Performance

The Board noted that 2016 was an excellent year for the Fund in terms of performance. The Board found noted the Fund’s Net Asset Value including distributions advanced 24.83% for the 12 months ended December 2016 and the share price including distributions rose 27.16%, for the same period. These performances compare to a 12.74% advance for the Russell 3000 Index during 2016. The Board further noted the longer term performance of the Fund with returns of 3.64% for 3 years, 8.23% for 5 years and 4.82% for 10 years as of December 31, 2016, which trailed the performance of Russell 3000 Index for the same periods.

Individual stock selection led to the Fund’s strong performance. The Board also noted the disciplined and long-term investment approach of Sprott USA and its portfolio manager.

Although the Board recognized that past performance is not necessarily an indicator of future results, it found that Mr. George, Sprott Asset, and Sprott USA had the necessary qualifications, experience and track record to manage the Fund. In light of the foregoing, the Directors determined that Sprott Asset continued to be the appropriate investment adviser for the Fund and that Sprott USA continue to be the appropriate investment subadviser for the Fund.

Fees and Expenses

The Board discussed with the Advisers the level of the advisory fee for the Fund relative to comparable funds. In addition to the management fee, the Board also reviewed the Fund’s total expense ratio and compared it to the Fund’s peers. The Board noted that the fees were within range of closed-end funds with similar investment objectives and strategies.

Profitability

With respect to profitability, the Board found the Advisers’ profits earned by managing the Fund to be reasonable.

Economies of Scale

The Board considered the existence of any economies of scale in the provision of services by the Advisers and whether those economies were shared with the Fund through breakpoints in its management fees or other means, such as expense caps or fee waivers. The Board noted that the assets of the Fund were too small to meaningfully consider economies of scale and the necessity of breakpoints. The Board concluded that the current fee structure for the Fund was reasonable and that no changes were currently necessary.

Conclusion

It was noted that no single factor was cited as determinative to the decision of the Directors. Rather, after weighing all of the considerations and conclusions discussed above, the entire Board, including all of the Independent Directors, approved the Investment Advisory Agreement and the Subadvisory Agreement, concluding that having the Fund continue to receive services from the Advisers under the Agreements was in the best interest of the stockholders of the Fund and that the investment advisory fee rate was reasonable in relation to the services provided.

The thoughts expressed in this Review and Report concerning recent market movements and future prospects for small company stocks are solely the opinion of Sprott at June 30, 2017 and, of course, historical market trends are not necessarily indicative of future market movements. Statements regarding the future prospects for particular securities held in the Fund’s portfolio and Sprott’s investment intentions with respect to those securities reflect Sprott’s opinions as of June 30, 2017 and are subject to change at any time without notice. There can be no assurance that securities mentioned in this Review and Report will be included in the Fund in the future. Investments in securities of micro-cap, small-cap and/or mid-cap companies may involve considerably more risk than investments in securities of larger-cap companies. All publicly released material information is always disclosed by the Fund on the website at www.sprottfocustrust.com.

Sector weightings are determined using the Global Industry Classification Standard (“GICS”). GICS was developed by, and is the exclusive property of, Standard & Poor’s Financial Services LLC (“S&P”) and MSCI Inc. (“MSCI”). GICS is the trademark of S&P and MSCI. “Global Industry Classification Standard (GICS)” and “GICS Direct” are service marks of S&P and MSCI.

All indexes referred to are unmanaged and capitalization weighted. Each index’s returns include net reinvested dividends and/or interest income. Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell Indexes. Russell^® is a trademark of Russell Investment Group. The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. The Russell 3000 Index is constructed to provide a comprehensive, unbiased and stable barometer of the broad market and is completely reconstituted annually to ensure new and growing equities are reflected. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. Returns for the market indexes used in this report were based on information supplied to Sprott by Russell Investments.

The Price-Earnings, or P/E, Ratio is calculated by dividing a company’s share price by its trailing 12-month earnings-per share (EPS). The Price-to-Book, or P/B, Ratio is calculated by dividing a company’s share price by its book value per share. The Sharpe Ratio is calculated for a specified period by dividing a fund’s annualized excess returns by its annualized standard deviation. The higher the Sharpe Ratio, the better the fund’s historical risk-adjusted performance. Standard deviation is a statistical measure within which a fund’s total returns have varied over time. The greater the standard deviation, the greater a fund’s volatility.

Forward-Looking Statements

This material contains forward-looking statements within the meaning of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), that involve risks and uncertainties, including, among others, statements as to:

This Review and Report uses words such as “anticipates,” “believes,” “expects,” “future,” “intends,” and similar expressions to identify forward-looking statements. Actual results may differ materially from those projected in the forward-looking statements for any reason.

The Fund has based the forward-looking statements included in this Review and Report on information available to us on the date of the report, and we assume no obligation to update any such forward-looking statements. Although the Fund undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make through future stockholder communications or reports.

Authorized Share Transactions

The Fund may repurchase up to 5% of the issued and outstanding shares of its common stock during the year ending December 31, 2017. Any such repurchase would take place at then prevailing prices in the open market or in other transactions. Common stock repurchases would be effected at a price per share that is less than the share’s then current net asset value.

The Fund is also authorized to offer its common stockholders an opportunity to subscribe for additional shares of its common stock through rights offerings at a price per share that may be less than the share’s then current net asset value. The timing and terms of any such offerings are within the Board’s discretion.

Proxy Voting

A copy of the guidelines that the Fund uses to determine how to vote proxies relating to portfolio securities and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available, without charge, on the Fund’s website at www.sprottfocustrust.com, by calling (203) 656-2430 (toll-free) and on the website of the Securities and Exchange Commission (“SEC”), at www.sec.gov.

Form N-Q Filing

The Fund files its complete schedule of investments with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Form N-Q is available on the SEC’s website at www.sec.gov. The Fund’s holdings are also on the Fund’s website (www.sprottfocustrust.com) approximately 15 to 20 days after each calendar quarter end and remain available until the next quarter’s holdings are posted. The Fund’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. To find out more about this public service, call the SEC at (800) 732-0330.