MANAGER’S DISCUSSION

For the quarter ended June 30, 2015, Sprott Focus Trust, Inc. (the “Fund”) gained 1.95%, bringing the 6 month advance to 2.59%. This compares to 3 and 6 month returns of 0.14% and 1.94% on the Russell 3000. Given the multi-cap composition of the Fund, which has been in place since early 2009, it was decided that the Russell

3000 is the most appropriate benchmark for the Fund. However, it is the intent of this manager to deliver absolute returns with an eye for positive long term results measured after fees and taxes. In addition to owning domestic companies with a wide range of market caps, at period end, the Fund held approximately 16% of its assets in foreign securities, half of which were Canadian-based resource companies.

ACTIVITY AND POSITIONING

While year to date results appear somewhat muted, individual stock performance volatility picked up dramatically. This is a positive new development for active management and hopefully one that will persist. During the first six months of the year, Cirrus Logic advanced 44.3%, Value Partners 92.4%, Cal-Maine Foods 36.5%, Apple Inc. 14.5% and Clarkson PLC 47.9%. While there were other notable winners, these were the top five contributors to the Fund’s six-month performance, adding over 500 basis points. In the cases of Cirrus Logic, Value Partners Group and to a lesser degree Apple Inc., positions were reduced to reflect the less favorable risk/reward profile caused by their stock price appreciation. I added to the Cal-Maine Foods position because the market has yet to appreciate its rapidly improving fundamentals. Cal-Maine is the largest egg producer in the USA and none of its facilities have been affected by the Avian Flu which has caused a reduction of about 1/3 of the national egg laying flock. Anyone who buys eggs will understand the effect this crisis has had on egg pricing. This appears to be a short term issue, expected to last a year to 18 months. However, there are longer term structural problems in the egg supply chain that will benefit Cal-Maine. Currently, as a result of Avian Flu, many investors are looking at this company for the first time.

Clarkson is the world’s leading ship broker. Based in the U.K., Clarkson earns brokerage fees for leasing, construction, decommissioning and research on roughly $3 trillion worth of assets around the world. The operating leverage on global trade in their business model is very exciting. The current position in Clarkson was held unchanged because it was smaller than the other winners, but that could change should it continue to advance.

Naturally there were some less than satisfactory holdings in the first six months of 2015. Our largest disappointments were Western Digital Corporation (-28.5%), SanDisk Corporation (-40.1%),

Franklin Resources (-10.9%), Sanderson Farms (-10.1%) and Unit Corporation (-20.5%). Combined, these holdings cost us 350 basis points. Western Digital and SanDisk were large winners in prior periods that had been pruned back and, in the case of Western Digital, providing a new opportunity to invest. As one of two remaining hard disk drive companies (three if you include Toshiba), Western Digital has a dominant position providing central storage systems to the rapidly expanding cloud ecosystem. Near-term erosion in sales to personal computer applications has created a market reaction which I believe is an opportunity.

The relatively small back up in the share prices of Franklin Resources and Sanderson Farms is viewed as an opportunity to add at the margin.

As of June 30, 2015 the Fund was fully invested (97.6% equities). This is by no means a reflection of a market view but, rather, the ability to find fifty attractively priced businesses. Asset management, loosely defined, remains the largest sector weighting at roughly 17.1%. This would include traditional asset managers as well as some specialized companies that manage assets but are defined differently (think Berkshire Hathaway). Mature technology is the second largest sector theme in the portfolio at 16.5%. This would include Apple Inc., Western Digital and other companies generally in technology industries with a new and purposeful commitment to shareholder returns. In some cases, these companies have committed to returning more than half their ample free cash flows to shareholders through dividends and buybacks.

The portfolio is invested with a little more than 14% in a variety of agricultural companies. It is my strong belief that affordable protein is a global growth story. Given the unpredictability of commodity prices and therefore earnings, agricultural companies are not widely followed by Wall Street and therefore are susceptible to mispricing. Energy is approximately at a 10% weighting and precious metals mining at 8%.

One last theme worth mentioning at roughly 15% of the portfolio is stocks with strong fundamentals that are heavily shorted. The Fund owns six positions where the short interest exceeds 25% of the float; in several cases the short interest exceeds 40%. These are neither sick nor overpriced companies, but rather industry leaders where short-term skepticism has become exaggerated in my judgment, often in tandem with generous dividends and share buybacks.

OUTLOOK

Very little has changed in the global financial outlook during the last few years. Central bank interventions continue around the world. While the U.S. Federal Reserve is expected to raise rates from their emergency levels later this year, or early next year, I believe they will do so only to prove that they can. I do not believe that the Fed or

anyone else believes that higher rates will solve any problems after our economy has spent six years getting accustomed to 0% short-term rates. Corporate strategies, which include borrowing money to fund buybacks and dividends at the expense of capital investment, will need to change. Growth through mergers and acquisitions followed by cost cutting will be harder to finance. Investment strategies chasing current payouts (MLPs and REITs) will surely stumble. Additionally, where will a whole new class of equities referred to as Unicorns go? It is my view that it will not be the Fed who will ultimately control interest rates, but rather the market itself. At some point, the increasing risk of default or more obvious debasement will drive a change. The drama in Greece is perhaps most significant for pointing this out to investors globally. There is a tipping point at which debt becomes too burdensome to service, much less repay.

While there is plenty to worry about in terms of macroeconomics, I remain optimistic about the Fund’s portfolio and believe the portfolio is well positioned for these highly uncertain times. Its holdings are well financed (strong balance sheets), have histories of high returns (ROI) and are conservatively valued. The recent pick up in market volatility is a welcome development for someone like myself who would rather buy one stock and leave the whole sector to others who prefer ETFs.

Performance¹

Average Annual Total Return (%) Through 6/30/15

*Not Annualized

Relative Returns: Monthly Rolling Average Annual Return Periods¹

15 Years through 6/30/15

On a monthly rolling basis, the Fund outperformed the Russell 3000 in 84% of all 10-year periods; 69% of all 5-year periods; 68% of all 3-year periods; and 65% of all 1-year periods.

*Average of monthly rolling average annual total returns over the specified periods.

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

Cumulative Performance of Investment²

Calendar Year Total Returns (%)

Top 10 Positions

% of Net Assets

Portfolio Sector Breakdown

% of Net Assets

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 Plans also allow 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 June 30, 2015.

How do the Plans work for registered stockholders?

Computershare maintains the accounts for registered stockholders in the Plans 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 June 30, 2015. 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 Plans?

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: 57  |  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. Prior thereto, Managing Director and Vice President of Royce & Associates, LLC, having been employed by Royce since October 1991.

Michael W. Clark, Director

Age: 55  |  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: 52  |  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.

James R. Pierce, Jr., Director

Age: 58  |  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.

Scott Colbourne, President (Fund)

Age: 52  |  Tenure: Since 2015

Principal Occupation(s) During Past Five Years: President of the Fund (since March, 2015); Co-Chief Investment Officer and Senior Portfolio Manager of Sprott Asset Management LP (since March, 2010).

Steven Rostowsky, Treasurer (Fund)

Age: 53  |  Tenure: Since 2015

Principal Occupation(s) During Past 5 Years: Treasurer of the Fund (since March, 2015); Chief Financial Officer of Sprott Asset Management LP (since March 2008); Chief Financial Officer and Corporate Secretary of Sprott Inc. (since March, 2008).

Thomas Ulrich, Secretary, Chief Compliance Officer

Age: 52  |  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).

Board and Stockholder Approvals of New Investment Advisory and Subadvisory Agreements

The Board of Directors of the Fund (then named “Royce Focus Trust, Inc.”) as constituted on December 16, 2015 (the “Prior Board”) at a regularly scheduled in-person Board meeting on December 16, 2014, approved, subject to stockholder approval, a new investment advisory agreement by and between the Fund and Sprott Asset Management LP (the “New Investment Advisory Agreement”) and a new investment subadvisory agreement by and among the Fund, Sprott Asset Management LP and Sprott Asset Management USA Inc. (together with the New Investment Advisory Agreement, the “New Agreements”). The Prior Board also voted to recommend that the stockholders of the Fund approve each New Agreement at a special meeting of stockholders of the Fund to take place on February 26, 2015. The stockholders at the Special Meeting of Stockholders on February 26, 2015 approved the New Agreements and elected three new Directors and one holdover Director (the “New Board”), replacing certain former Directors who had resigned. At a special in-person Board meeting on March 9, 2015, the New Board ratified and approved the New Agreements.

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, 2015, 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, 2015 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, 2015. 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 policies and procedures 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 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.