U.S. Global Gold Fund wins with Bre-X

Business Wire, May 13, 1997

SAN ANTONIO--(BUSINESS WIRE)--May 13, 1997--Despite the scandalous news of fraud at the Bre-X property in Indonesia, U.S. World Gold Fund shareholders made good money with this infamous junior gold mining stock.

The U.S. World Gold Fund bought its first shares of Bre-X in July of 1995. Portfolio Manager Victor Flores says: "In the end, we made our shareholders a profit of well over $3 million on Bre-X."

U.S. Global Investors Inc. (NASDAQ: GROW) has been investing in the gold mining business since 1972 when it opened the country's first no-load gold mutual fund, and since that time the company has been recognized as having one of the most qualified natural resources teams in the industry. "We have an extensive global network and a team that includes geologists, mineral economists, petroleum engineers, and CFA's. U.S. Global Investors' natural resource team offer investors sophisticated expertise in assessing risk in a very high risk business," says Frank Holmes, CEO. "We'll be the first to tell you that this is a market of probabilities that only skilled professionals should get involved in," says Holmes.

"With years of experience, we have learned not to be too greedy and to take money off the table at an early stage. The U.S. World Gold Fund handled Bre-X like it does most junior exploration stocks, and took profits early in order to recapture its initial invested capital. I consider any investment in which we more than double our investors' money a success, so in spite of all the negative press the mining industry has received lately, we're already out there looking for the next quality investment," he continues. -0-

Past performance is no guarantee of future results. Investment return and principal value will fluctuate. You may have a gain or a loss when you sell shares.

CONTACT: U.S. World Gold Fund

U.S. Gold Shares Fund

Victor Flores, 210/308-1234

or

Johanna Thornblad, 210/308-1237

jkt@portfolio.usfunds.com