The Sprott Junior Copper Miners ETF (COPJ) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Junior Copper Miners™ Index.

The Nasdaq Sprott Junior Copper Miners™ Index is designed to track the performance of mid-, small- and micro-cap companies in copper mining-related businesses.

The index combines Sprott’s decades of experience in the mining sector with Nasdaq’s renowned index expertise. To be eligible for inclusion in the Nasdaq Sprott Junior Copper Miners™ Index (NSCOPJ™), a company must meet the requirements that follow.

Eligibility Requirements

• Have at least 50% exposure to copper, for example as determined by revenue and/or assets
• Be a security listed on an approved exchange, China A-Shares are not eligible
• The security’s issuers must be classified by Sprott as a copper producer, developer or explorer
• Have a market capitalization of at least $40 million or $25 million for existing constituents
• Have a market capitalization no higher than $2.5 billion or $3.5 billion for existing constituents
• The security must have been publicly traded at least three months prior to the reconstitution reference date
• A security must have a three-month average daily traded value of at least $50,000 or $25,000 for existing constituents

Constituent Weighting Process

• The index is a modified free-float market capitalization-weighted index
• Constituents’ initial weights are determined by dividing each constituent’s free-float market value by the aggregate free-float market value of all constituents
• Initial weights are adjusted to meet the following constraints:
  • The weight of each constituent may not exceed 4.75%
  • No constituent weight may be less than 0.30%

Index Rebalancing

• The index is reconstituted semi-annually in June and December, effective at the market open on the first trading day following the third Friday.
• Beginning September 21, 2026, the index is rebalanced quarterly in March, June, September and December, effective at the market open on the first trading day following the third Friday.

Investing in small exploration and development stage companies that mine copper poses challenges. Many mining companies are domiciled in foreign countries, have small market capitalizations, are volatile and may have limited liquidity, making individual equity investing more challenging for some investors. The Sprott Junior Copper Miners ETF offers investors a convenient vehicle to access junior miners that supply this critical mineral along with diversification across companies.

Existing ETFs focused on the copper sector provide exposure to larger companies. Investors that seek exposure to smaller copper miners, and their potential for significant revenue and asset growth, may find COPJ to be an attractive alternative to existing ETFs.

“Pure play” means that the companies in an ETF derive a significant portion of their revenue or assets from the targeted commodity or industry, rather than from unrelated business lines. This focused approach can help the portfolio more closely reflect the intended investment thesis while limiting incidental exposure to other industries.”

If copper demand and prices increase, upstream copper companies may benefit through greater demand for their resources and improved economics. COPJ focuses on these upstream companies rather than downstream manufacturers and other end users.

Several long-term themes may support investor interest in junior copper miners. The following general themes are driving investor interest:

Copper and other critical-material supply chains have become national security priorities

Nations are rapidly building diversified energy systems, including nuclear and renewables, to insulate themselves from geopolitical, macroeconomic and financial shocks. The U.S. is treating critical materials as a national security risk. It has launched a federal investigation into copper and critical materials, which could result in broad-based tariffs, similar to the 50% imposed on steel and aluminum.

A U.S. executive order is accelerating the supply of critical materials in the U.S. by removing key bottlenecks, prioritizing copper and critical materials by expediting permitting timelines, streamlining regulatory hurdles and unlocking government-backed financing.

Massive AI data center power requirements are copper-intensive

Globally, data centers’ electricity demand may rise 2.2x by 2030, to a level exceeding Japan’s total power use.³ As data centers’ AI capabilities grow, so does the need for copper-intensive electrical equipment. Cumulative new copper demand from AI data centers is projected at 5 million metric tons by 2030. On an annual basis, this is equivalent to 2.8% of 2030’s forecasted global demand. Further, BHP Group, the world’s largest mining company, estimates that the copper used in data centers globally will grow six-fold by 2050, to around 3 million metric tons annually.⁴

Copper is critical to the future of energy

Electricity demand is estimated to increase 157% by 2050⁶ as emerging-market middle classes expand, new technologies proliferate and AI data centers provide a new demand shock for copper markets. Copper is required for energy transmission and infrastructure development. Copper is essential to electricity transmission, grid infrastructure and many current and emerging energy and digital technologies.

Copper supply faces challenges

Global copper supply faces significant constraints, including declining ore grades, limited new discoveries and the long lead times required to develop new mines. On average, a copper mine takes 17 years to move from discovery to first production.⁶

The copper supply-demand imbalance is likely to grow, underscoring the critical role of copper mining companies in meeting demand.

Copper miners may benefit as long-term energy requirements evolve

Copper miners may offer a long-term investment opportunity as the energy transition continues and global electricity demand grows. If copper demand outpaces available supply, the resulting market conditions may support copper prices and improve the economics of certain mining companies. Additionally, long production lead times are causing larger miners to look to acquisitions, and an uptick in mergers and acquisitions (M&A) within the industry could further strengthen the position of copper miners.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Junior Copper Miners ETF. ALPS Advisors, Inc. is the sub-adviser, and ALPS Fund Services, Inc. serves as the administrator. ALPS Distributors, Inc. is the Distributor for the Sprott Junior Copper Miners ETF and is a registered broker-dealer and FINRA Member. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.

The Sprott Junior Copper Miners ETF expects to declare and distribute all its net investment income, if any, to shareholders as dividends at least annually and on a pro-rata basis. The Fund may distribute such income dividends and capital gains more frequently, if necessary, to reduce or eliminate federal excise or income taxes on the Fund.

Please reach out to your Sprott representative at 888.622.1813 or invest@sprott.com for additional questions.

¹Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 9/30/2026.

² The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.

³ Source: BloombergNEF, New Energy Outlook 2026.

⁴ Source: BHP Insights, “Why AI tools and data centers are driving copper demand,” 2025.

⁵ Source: IEA World Energy Outlook 2025 Net Zero Emissions Scenario.

⁶ Source: From 6 years to 18 years: The increasing trend of mine lead times, S&P Global. April 3, 2025.