Central GoldTrust Issues Letter to Unitholders - Seite 2

Your Trustees believe that the Sprott Offer does not provide you with compelling value for your Units, and that you are better off retaining your GoldTrust Units. In fact, the significantly higher fees charged by Sprott would result in the deterioration of the value of your Units over time.

Your Trustees, based on the recommendation of a Special Committee of Trustees who are independent of the administrator, have recommended that Unitholders REJECT the Sprott Offer. They have reached this conclusion after considerable deliberation and with the assistance of independent legal and financial advisors. Among the many reasons that support the Trustees' recommendation are the following:

• Sprott's claims of "unlocking value" are exaggerated - they are offering NO meaningful premium to GoldTrust Unitholders
• Sprott's Offer is solely motivated by its desire to generate higher management fees for Sprott by seizing control over GoldTrust's assets
• Sprott PHYS charges 75% higher management fees than GoldTrust
• Sprott has a poor track record of managing investors' capital
• Sprott PHYS provides investors with virtually no voting or other governance rights and virtually no ability to replace Sprott as its manager
• Sprott PHYS offers less bullion security and safeguards than GoldTrust
• The Sprott Offer may result in significant negative U.S. tax consequences for certain U.S. Unitholders

Your Trustees have at all times acted in the best interest of ALL Unitholders and will continue to do so. We believe the preservation of GoldTrust's existing structure will allow GoldTrust Units to outperform when positive gold markets return as they have done in the past. We believe that retaining your GoldTrust Units represents a clearly superior alternative to the Sprott Offer, which provides you with no meaningful premium, significantly higher costs, virtually no governance rights and the assumption of well-documented risks.

Unitholders will continue to benefit from GoldTrust's much lower expense ratio, superior bullion security and safeguards, tax-efficient structure and best-in-class governance - features that make GoldTrust the clear choice for long-term gold bullion investors.

As previously disclosed, your Trustees approved a new cash redemption provision at 95% of Net Asset Value ("NAV"). However, implementation of this new feature was prevented as a result of Sprott's self-serving actions in the Ontario court. This enhanced cash redemption feature was designed to address trading discounts to NAV in bear markets while preserving the advantages of GoldTrust's existing structure. Your Trustees do not believe that Unitholders should be deprived of these benefits and, as previously disclosed, intend to take all appropriate steps to implement this enhanced redemption feature as soon as the Sprott Offer is defeated.