Central GoldTrust Provides Summary of Events

TORONTO, ONTARIO--(Marketwired - Oct. 2, 2015) - Central GoldTrust ("GoldTrust") (TSX:GTU.UN) (C$) and (TSX:GTU.U) (US$); (NYSE MKT:GTU) (US$) today provided an update on developments that have occurred since the Trustees of GoldTrust issued their Trustees' Circular dated June 9, 2015, recommending that Unitholders of GoldTrust reject the hostile take-over bid by Sprott Asset Management LP and Sprott Physical Gold Trust (collectively, "Sprott") for all outstanding Units of GoldTrust (the "Sprott Offer"). The Sprott Offer is now set to expire on October 9, 2015, and GoldTrust believes that prior to the expiry of the Sprott Offer, the Unitholders of GoldTrust should have the benefit of the following summary of events that have occurred since the date of the Trustees' Circular, in making their determination as to whether or not to accept the Sprott Offer.

GoldTrust proposes Enhanced Cash Redemption Feature

On June 24, 2015, following an extensive review of a number of alternative features to address the discounts to Net Asset Value ("NAV") that GoldTrust Units have traded at during the current extended bear market for gold bullion, the Trustees adopted proposed amendments to GoldTrust's Declaration of Trust providing for an enhanced cash redemption feature which would allow all Unitholders to redeem their GoldTrust Units at any time for cash in the amount of 95% of NAV, based on the average published NAV of GoldTrust for the five trading days following the notice of redemption (the "Enhanced Cash Redemption Feature").

The Enhanced Cash Redemption Feature is expected to offer a number of benefits to Unitholders, including: (i) significantly reducing potential future trading discounts to NAV; (ii) being accessible to all Unitholders at any time regardless of the size of their holdings; and (iii) redemptions being accretive on a pre-tax basis to non-redeeming Unitholders, as GoldTrust would be redeeming Units at a 5% discount to their underlying NAV.

The Trustees believe that GoldTrust's proposed Enhanced Cash Redemption Feature is superior to that of Sprott Physical Gold Trust, which is based on 95% of the lesser of NAV or market price, and exposes investors to significant market risk for up to 46 days since redemption pricing occurs only once per month. In addition, the Trustees also believe that the Enhanced Cash Redemption Feature represents a clearly superior alternative for long-term bullion investors to Sprott Physical Gold Trust's physical redemption feature, which would only be available to approximately 1% of Unitholders with holdings greater than approximately US$450,000, offers no pre-tax accretion to non-redeeming Unitholders and could expose certain non-redeeming U.S. Unitholders to significant tax liability as well as saddling Unitholders with increased annual costs.