FOR IMMEDIATE RELEASE:

                                                           Contact: Terry Badger
                                                      Director of Communications
                                                                    210.308.1221
                                                             tbadger@usfunds.com




                 U.S. GLOBAL ANNOUNCES A 2-FOR-1 STOCK SPLIT AND SPECIAL
                 DIVIDEND OF $0.25 PER SHARE POST-SPLIT

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SAN ANTONIO--November 8, 2006--U.S. Global Investors, Inc. (NASDAQ: GROW), today
announced  that its Board of Directors has approved a 2-for-1  stock split.  The
Board also approved  amendments to the Articles of  Incorporation of U.S. Global
which would  increase  the number of  authorized  shares of Class A Common Stock
from 7 million to 28  million,  Class B Common  Stock  from 2.25  million to 4.5
million, and Class C Common Stock from 1.75 million to 3.5 million and otherwise
modify the relative dividend and liquidation  preference rights of the different
classes of common stock and permit conversion of Class C Common Stock to Class A
Common Stock.

The stock split and other  amendments,  intended to  modernize  and simplify the
Articles of Incorporation,  are subject to shareholder approval of amendments to
U.S.  Global's  Articles of  Incorporation  at a special  shareholders'  meeting
scheduled for January 10, 2007.

The record date for the January 10, 2007, special  shareholders' meeting will be
November  20,  2006.  If the  increase in  authorized  shares is approved at the
special  meeting,  the stock  split will be effected  on January  22,  2007,  to
shareholders of record on January 10, 2007.

The Board of  Directors  of the  Company  has also  authorized  the payment of a
special  dividend  of $0.50 per share  ($0.25 per share  post-split)  payable on
January 22, 2007,  to  shareholders  of record on January 10, 2007,  conditioned
upon shareholder  approval of the foregoing amendments to the Third Restated and
Amended Articles of Incorporation by the shareholders at the Special Meeting. If
amendments  to U.S.  Global's  Articles  of  Incorporation  are not  approved by
shareholders,  the  special  dividend  would  not be  made,  and the  board  and
management would consider other alternatives.

We urge  shareholders  to review  the proxy  materials  once  received  and vote
promptly.  Information on the proxy materials will be available on U.S. Global's
website, www.usfunds.com.

About U.S. Global Investors,  Inc. U.S. Global  Investors,  Inc. 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 U.S. Global Accolade Funds.

With an average of over $4.7 billion in assets under  management  in the quarter
ended September 30, 2006 U.S.  Global  Investors  manages  domestic and offshore
funds that offer a variety of investment options, from emerging markets to money
markets.  In general,  trends in the assets  under  management  are the critical
drivers of revenue and earnings trends.

This news release includes  forward-looking  statements  concerning the Company.
These may  include  statements  of plans or  objectives  for future  operations,
statements  about future economic  performance or assumptions or estimates.  The
accuracy  of these  forward-looking  statements  is  subject  to a wide range of
business  risks and changes in  circumstances  that are described in our reports
that are filed from time to time with the  Securities  and Exchange  Commission.
Actual results and outcomes often differ from expectations.